Best Way to Choose an Insurance Policy

Front End Car Collision
Photo by Ian Britton

Choosing an insurance policy can seem like a daunting task at first, but finding the best insurance coverage really comes down to what makes you the most comfortable when it comes to taking risks, getting personal service and fitting insurance into your budget.

Whether you’re purchasing automobile insurance, no exam life insurance,  homeowners insurance, renter’s insurance or coverage for any other property you own, you have to consider what is most important to you–or at the very least, what is important to you within the confines of your financial ability. Any insurance that you purchase can range from bare minimum coverage to excellent coverage, so it really is a personal decision.

If you are struggling financially, you may only be able to get basic coverage. If that’s the case, just reassure yourself that some coverage is better than no coverage. Then, when you’re in a better financial position, you can always increase the limits of your policy. In this situation, your insurance policy may be dictated by what the legal minimum requirements are in your state or what little more, if any, that you can afford.

If price isn’t the deciding factor for you, however, you have many more factors that can affect your choice of insurance policy. Perhaps making sure that anything you own can be completely replaced in the event of an accident or catastrophe is your top priority. In this case you may want to insure items that are less valuable than your vehicle or home, but still of enough value that you could not easily replace them without insurance. This may include jewelry, photography equipment, a gun or figurine collection, high-end electronics, musical instruments or anything else in which you’ve invested a substantial amount of money.

You may also find yourself of the mindset that though you certainly don’t want to lose your valuable items, the price to insure them versus simply saving up to replace them on your own isn’t worth the insurance premium. There are some instances when choosing coverage item by item based on premium rather than blanket-covering all of your possessions, can be in your best interest financially.

It could also be that you want to make sure the coverage you have will fully pay for any damages you may cause to another person’s health or property. If you are the kind of person who seeks to ensure that your assets are safe and you won’t be subject to a lawsuit in the event of being underinsured, you may choose your insurance policy based on the highest limits of coverage rather than on price alone. You may even choose to purchase an extension policy such as an Umbrella policy, which gives you additional coverage beyond what your basic homeowners or automobile policy may entail.

Another factor that many consumers overlook is the benefit of personal service. Though you may be able to find a lower price through an online source or even through a large, advertising-driven company, you may become frustrated with the lack of personal interaction when you need to make changes to your policy or have to file a claim. If you appreciate having a face to face conversation or at the very least, someone’s attention over the phone, you may find that a smaller insurance agency or an independent agency best fits your needs. If insurance is difficult for you to understand or you value the time someone takes to explain all of your options and how they affect you, personal service may be the deciding factor in choosing your insurance policy.

Personal attention also comes into play when you need additional services such as a replacement Auto ID card, a certificate of insurance for business, proof of insurance when you’re refinancing your home or other extras that service-driven agents can take care of for you quickly rather than your service request being trapped in some unknown queue that is beyond your control. There are many times when having a policy through an agent who will personally cater to your needs can make your life a lot easier.

Whether you are forced to consider price as your top priority, you are able to pick and choose your coverage based on preferences for each item you own or you choose a policy based on the service you will receive along with it, choosing the best insurance policy is all about knowing that what you value most is protected and having peace of mind that you’ve made the decision that best fits your personal needs.

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