Shopping for auto or homeowners insurance is not something the average person anticipates in the same way they might the purchase of a new car, clothing or electronics. However, prices and customer service can vary significantly between insurance companies, and choosing the right carrier to suit your personal needs can make a significant difference down the road should you ever have to file a claim. Following the four simple steps below will help to ensure that you select the right policy and insurance company at the right price for you.
1. Start by assessing your own personal or household insurance needs. Many insurers offer significant discounts for customers who purchase multiple policies"often called "bundled" services. Popular insurance choices include:
· Vehicle insurance (cars, motorcycles, boats, RVs, etc.)
· Property insurance (home, apartment)
· Coverage for valuable possessions (jewelry, artwork, or business equipment)
· Catastrophic coverage not normally covered under the traditional homeowners policy (earthquake, flood, etc.)
For each type of insurance, it is important to understand the amount of coverage you need. For example, when purchasing homeowners insurance, you should purchase sufficient coverage to insure the cost to rebuild your home in the event it is destroyed. A common misperception is to insure the home for its market value or the balance remaining on your mortgage. Unless it is covered for the "replacement cost" you run the risk of finding yourself underinsured.
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