Everyone knows that insurance is expensive. It can be a prohibitive expense for some people, meaning that they may have to forgo certain benefits to save on their premiums. For others, it can be a cost-effective way to protect their assets from the ravages of an accident or the consequences of a crime. The good news is that there are various ways that you can lower your insurance costs while still covering your assets. How much you spend on your insurance each year is a personal choice. What we’re going to share with you today will help you determine the most cost-effective way to protect your family and your assets.
What is insurance? It’s a contract between you, the policyholder, and your insurance company. What happens if you have an accident or suffer some other loss? Your insurance company will pay for everything they are legally required to pay. They may even offer you a bonus if they meet specific criteria. You’re not a customer; you’re a policyholder.
How do I shop around for the best rate? The first step is to take stock of your assets and liabilities. Every insurance company requires that you list all of your valuables and expenses on a form called an “insurance application.” This includes everything from the value of your home and car to the value of your life insurance policy. Once you’ve completed this form, it should be sent to several different companies for consideration, including one or more significant carriers like State Farm, Allstate, or Liberty Mutual. You can also try using one of the online services, like Insure.com, which will search for the best rates on your behalf.
The best way to compare rates is to compare apples to apples. You should look at how much coverage you want, how much you’re willing to pay per month, and what type of coverage you want (liability protection, health insurance, etc.) and then compare those numbers with the cost of the policy. The best way to do this is by using a “rate table” that compares the price of different approaches with certain features and deductibles. This can help you determine which features are important to you and which ones might be completely unnecessary.
Although these things are essential to some people, it’s important not to get too bogged down in the details. Just make sure you understand the basic features of each policy before you begin comparing rates because there are a lot of approaches out there with very similar names that have very different coverage levels. You need to know what the other policies cover to decide which one is right for your needs and budget.
