How Do You Find the Right Insurance Company for the Right Price
Even if you know exactly how much insurance you want or need, there's another crucial element in this process. You have to find an insurance company that will provide the coverage you want at the best price.
An insurance agent can be invaluable in helping find the right company.
* Note. There are thousands of insurance companies in this country that sell auto, homeowners and other coverages individuals need. No two companies offer all of the exact same policies. Some companies want only certain types of drivers or homeowners. Some offer higher limits. Some offer what might be described as barebones coverage.
* Note. There are at least six different coverages that are part of auto insurance!
* Note. Homeowners insurance policies have limits on what they will cover in terms of possessions, particularly jewelry, fine art and computer equipment. Many insurers offer substantial discounts (10%, even 20%) if you have both your auto and homeowners policies with them.
Does the insurance company offer so-called umbrella policies, which provide additional liability coverage over the limits of your homeowners and auto policies? Do you even need an umbrella policy?
How do you find what's best for you? You could shop on the Internet for insurance. There are numerous sites that have price quotes for auto, homeowners and life insurance policies. But what coverage is available under these policies? And how can you be sure that you're buying enough coverage?
You could look in the telephone book and find dozens of companies that sell auto, homeowners and life insurance policies. You can call each of these companies and talk to oneof their employees.
But does this person know your insurance needs? Can he or she assess how risk averse you are based on a fairly short phone conversation? Does this person even have a license to sell insurance? And how can this person work for you when he or she is working for the company? Can you imagine a sales representative saying to you, "Frankly, I don't think we have the kind of coverage you need?"
You could call an insurance agent who represents one insurance company. These companies State Farm, GEICO, USAA, Farmers, the Auto Club, etc. are fine, financially sound insurers, but what if they don't have the coverage you need at the price you want to pay? The agent doesn't have any options for you. He or she represents just that one company.
If you want the best in terms of coverage options and prices, you should call an independent insurance agent. Independent agents represent numerous companies, each of which has a broad range of product offerings. These agents do derive their income from their companies, but they are not employees of any insurer. Independent agents are just that . . . independent!
Once they assess your insurance needs, they can then find the company they represent that has the coverage that best suits you, at the price you are willing to pay.
About price -- it's not everything. Cheap doesn't equate to good. Unless you have few assets to protect, the lowest priced policy is rarely the best deal for you. This doesn't mean you need to buy the highest price policy, either. Think Value. How much are you getting for what you're paying?
Does your car have airbags, antilock brakes? Discount. Is your teenage son or daughter who drives your car(s) a good student? Discount. Does your home have an alarm system? Discount. Are you a nonsmoker? In good shape? Discounts for life insurance. A good agent can make sure you are getting all the discounts that you are entitled to.
* Note. Your overall insurance program for you, your family, your home(s), your car(s), your assets, your career, even your life, will probably have several components. Most states require you to have auto insurance with at least minimum liability limits. Your mortgage lender will require a homeowner's policy. Everything else is basically optional.
Ultimately, you will decide what to protect with insurance and what risks to assume yourself. In the next few chapters, we will examine the various personal insurance policies, including what they cover and what they don't.
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Seeking Life Insurance?
- Term Life Life Insurance - Protect your family for a specified period of time, called a term.
- Key Person Life Insurance - Sheild your company from the consequences of big loss
- High Risk Life Insurance - Special life insurance for those who have trouble finding great rates for their life insurance
- Permanent Life Insurance - Universal life insurance is permanent and flexible
