Selecting the right insurance coverage is an overwhelming task. It is important to understand the choices available to you and the terms of your contract. Coverage options and price are two of the primary reasons people select one insurance company over another. Here is some information to help you understand your policies and to help you negotiate rates
Auto Insurance
There are two main categories of automotive insurance – comprehensive and liability. Comprehensive insurance is more expensive. It pays for the damage to your vehicle and other property in the event of an accident or theft. Most lenders require comprehensive coverage on your vehicle during the term of the loan. Liability insurance covers damage or injuries to other people’s property or vehicles in the event of an accident. It does not cover damage to your property.
You can tailor your insurance to meet your budget requirements. Many people may be wondering how does insurance work when insurance companies offer real-time driving discounts. The company monitors your driving habits through a device in the vehicle. They adjust your rate accordingly.
Adjusting your deductible can also affect your monthly insurance premium. The deductible is the amount you pay for each claim you submit. The higher the deductible, the lower the premium. If you choose a high deductible, add this amount to your emergency savings fund.
Homeowners Insurance
Homeowners insurance covers damage to your home as a result of a fire or theft. If you own a mobile home, condominium or apartment, these policies will cover the structure. If you rent, you can receive similar benefits through renters insurance policies. There are add-ons to these policies for extra coverage.
Keep in mind that flooding is not part of a typical homeowners insurance policy. FEMA flood maps determine the risk of damage to the structure from a flood. Your lender will help you determine if flood insurance is required on the structure. You can also work with a local land surveyor to determine if the elevation of the building requires flood insurance.
Life Insurance
There are many life insurance policy options. Term life insurance is typically one of the least expensive, as you pay for a contracted number of years. If the insured passes in that timeframe, the beneficiaries receive the payment. With a whole life insurance policy, the deductible is paid until the insured’s death. At that time, the beneficiaries receive the payment.
You can also tie your life insurance benefits to the stock market with some types of policies. A life insurance professional can help you determine the best life insurance option for you and your family.
Insurance Discounts
Many insurance companies offer a variety of discounts to encourage your loyalty. Most offer discounts to individuals that have multiple policies through that company. Students receive discounted rates for maintaining good grades. Many insurance companies offer discounts for taking driver’s education or defensive driving courses. Don’t hesitate to ask for available discounts.
Working with a licensed insurance broker can help you wade through the most cost-effective insurance solutions for you and your family.
Produced in association with Craig Lebrau
