How to Compare Insurance Policies Without Getting Overwhelmed
Shopping for insurance can leave you in a state of head-spinning panic. You could end up paying more for coverage you don't need, or you could find out too late you don't have enough coverage. On top of it all, you have to enter all your information only to have your inbox flooded and be continuously contacted by sales reps from insurance agencies night and day. Here is how to compare insurance policies without pulling your hair out or spending hours sorting through data.
How to Compare Insurance Policies Without Getting Overwhelmed
Know What Type of Insurance You Are Looking For
Figuring out what type of insurance you need will aid you in your search. You won't require motorcycle insurance if you don't own or drive one. You shouldn't have renter's insurance if you own and live in your home. Understanding what you need will take away from some of the stress of searching and help you zero in on the best policy for you.
Examine Your Budget
Make a list of your monthly finances, income, and spending. If you know how much you can spend on insurance, it will make it easier when deciding to pay monthly or quarterly, choosing a rate, and deductibles. Determining what policy is right for you also means what you can afford.
Research the Company
Search for the insurance provider, read the customer reviews, and turn to social media. Reading feedback from actual customer experiences will help you in deciding if that company is right for you. Through the Better Business Bureau website, you can view the company's grade, customer complaints, and reviews.
Read the Fine Print
If you are shopping for car insurance, see if your car rental and towing after an auto accident is covered. If you let your friend drive your car and they get into an accident, are you still covered?
Some life insurance policies may be worthless in the event of some accidental deaths. Remember, there is a reason the fine print is hard to read. Taking a magnifying glass to the text could save you and your family a lot of money and trouble.
Check for Discounts
Some companies offer safe driving discounts or incentives. You can also save if you bundle your home and auto. Others offer discounts to loyal customers or going paperless.
If you have a student driver, you can receive a good student discount, which results in a win-win - they make good grades, you save money. Occupational and organizational discounts are also offered for military members or alumni of specific colleges and universities.
Understand the Different Types of Coverage
Understanding what coverage is available lets you decide what policy works best for you. Knowing what your options are and what is included in your insurance policy saves you from spending needless amounts of money.
Comprehensive vs. Collision
Almost every state requires you to have auto insurance, but there is additional coverage you can add to your policy that can protect you.
Let's say you are driving home and you hit a deer. In that case, the comprehensive insurance would cover damages to your vehicle. But if you swerve, miss the deer, and instead run into your neighbor's fence, then collision insurance would cover the damages. Likewise, if a tree falls on your car, comprehensive has you covered; if you hit the tree, collision comes in handy.
Homeowner's
Basic homeowner's insurance covers your home and personal belongings from perils that include fire, lightning, falling options, vandals, and hail. It is the most popular choice.
Liability coverage will cover you from lawsuits. If your neighbor pays you an unexpected visit and your dog bites them, your insurance pays her medical bills. The same goes for if your neighbor slips on your freshly mopped floor - the policy will cover their medical and even lost wages if they decide to sue.
Life Insurance
Term life insurance lasts a certain amount of years, typically 20 or 30, then ends. If you pass away within those years, your beneficiary receives the payout from your policy. Whole life insurance is lifelong coverage but has more of a cash value aspect. If needed, you can make a limited withdrawal from your policy.
Health Insurance
Health Maintenance Organization (HMO) covers a range of health services, but you have to visit one of the in-network healthcare providers and select a primary care physician. If you make an emergency visit to an out-of-network hospital, you can expect to pay out of pocket. Usually, HMOs have low premiums and little to no deductibles.
Preferred Provider Organization (PPO) offers you more flexibility and choices, as you most likely won't have to select a PCP. However, you can expect higher premiums and to pay deductibles.
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