What’s baffling about most people is that they think longer and harder about buying a handbag or a pair of shoes than they do when purchasing an insurance policy. If you don’t do your homework beforehand, you might find yourself in the losing end after a calamity has struck your home and your insurance hasn’t pulled through.
Check the Company’s Reputation
If you are living in Wisconsin, the automobile insurance company you should buy a policy from should be properly regulated, licensed, and certified by the state board. That goes the same with other states. You can check an insurance agency’s financial health by checking their records with insurance rating organizations such as Weiss Ratings, Standard & Poor’s, and Fitch Ratings and Demotech, Inc. The insurance rating agencies will measure the company’s financial performance in the past, return on investment, and expected financial performance in the future. These will help you determine if the insurance agency is sturdy and will be able to fulfill their obligations.
Get Quotes and Compare
Thanks to a highly digitized world, you don’t have to go from agent to agent and from company to company to get quotes. Using comparison websites, you can get five or more quotes from insurance companies that you can compare and contrast. Many of these sites will even allow you to purchase the chosen policy right from the comparison website itself.
Ask for Discounts
Paying insurance premiums is no joke. Sometimes, this can cost thousands of dollars, especially for auto insurance policies. Ask the agent if there are any discounts that you can take advantage of and that you are qualified to get. Some of the most common discounts involve multi-policy discounts, teenage driver discounts, and homeownership discounts. For cars, if you have safety devices installed, you may qualify for a discount, too.
Seek Recommendations
Check out forums and social media to know what people are saying about these insurance policies. What better way to know about these insurance companies and policies than from their clients? Who would you believe? An agent working for the insurance firm or a client who had personal experience dealing with the company during claims and other situations?
Upgrade Later
Because of your financial obligations, you may not be ready to pay a higher premium. At least purchase the most basic insurance policy that you can afford. When your budget can accommodate it later on, you can upgrade to a more comprehensive policy. Also, you can tell your agent how much you can afford a year so that the agent can customize the package for you.
Read the Contract Thoroughly
Do not assume that your insurance policy is going to cover for everything, whether it involves your health, home, or car. Always read the contract thoroughly to understand the limitations and requirements of the coverage. If your “claim” falls outside the policy, you will need to dole out for it yourself.
Use all the tools and resources available to find the best insurance policy that’s going to protect you and your family. Ask an expert. Read recommendations and reviews. It wouldn’t hurt to spend an hour or two finding out everything you can about insurance policies if it means getting the best out of your money.