Hints for Insurance Newbies

The interesting thing about insurance is that you never want to use it, even if you buy it. But nobody can say that he would never report an insurance claim. That is why it is very important to have right coverage options.

You have to Determine the amount of insurance you need

Nobody can stop bad things from happening. But the financial protection is available to everybody. It is called insurance. The amount of needed insurance is affected by different factors:

  • the amount of things you owe and own;
  • the worth of your assets;
  • presence of your dependents;
  • how much money you can pay regularly.

There are a lot of on-line calculators or worksheets which can help you to evaluate your coverage, but the best thing is to talk face-to-face with an insurance agent or broker, because he can assist you with your needs more accurately.

Comparing the prices

The process of buying insurance starts with your decision of the amount and type of coverage you need. A second step is contacting insurance companies online, or useing an insurance agent or broker services to receive the quotes. It is wise to get quotes from several different insurers; the premium cost usually can vary widely.

You have to compare the offered coverage as well. A policy can be cheaper depending on its offers, features and benefits. The settled company must be reputable, with good public image, great customer service and nice claims-paying history. You can check the ratings and the ability to pay claims of all insurance companies; these ratings are made by major rating agencies (such as Standard & Poor's, Moody's, A.M. Best). They are accessible online, in public libraries, or in any car insurance company literature.

You need to realize and understand the product youíre buying

The insurance policy as any other legal contract is full of technical terms which are hard to understand. You need to read it anyway before you sign on the dotted line because you need to know the coverage you're buying. Usually in the policy contains the information about the covered subject, applied coverage exclusions and limitations, starting and ending dates, the amount of coverage, the sum of premium (money you pay for the coverage), the procedure of claim report

Act wisely: always ask an insurance professional to explain any terms, conditions, or benefits you didnít get.

Reckon up your insurance needs from time to time

Your insurance needs should be adjusted to the changes in your life. So from time to time (some experts suggest to do this every year), monitor your insurance to see if you need another coverage or an additional option for coverage. There are some life events, when you'll want to change your insurance needs for certain: starting a family; starting a new job or becoming self-employed; getting married or divorced; buying a house or a car, or making any other major purchase; renting an apartment; buying or selling a business; when income increases or decreases substantially; taking care of an aging parent; retiring.

Your insurance policies must work for you. You just need to take some time to review your needs and coverages from time to time.

We ask you to remember that the explanation above is destined only as a guideline.