Thinking about Insurance – Tips To Make Sure You Get It Right

Insurance is regarded by most people as a necessary evil. It is not something that anyone wants to spend money on, but it is widely recognized that you are better off with it than without.

So, while it is generally a grudge purchase, it is a vital one if you want to ensure that your quality of life is not affected adversely in the case of a disaster. With this in mind, how can you plan smartly to ensure that the grudge is as limited as possible and that the benefit is as all-encompassing as it could be?

Here are a few tips to help ensure that you get it right when taking out your policies.

Work with specialists

When shopping for insurance, convenience is important. But the convenience that we are talking about applies to the claiming process, not the shopping process. So, shop around and make sure that you work with the right people for the right products.

The idea of a one-stop-shop that caters to all your needs in one place is not necessarily a good one. Insurance comes in many forms. It can be long-term or short-term. There are medical insurance and disability and any number of other types of insurance.

So, if for example, you need a marine insurance quote, rather speak to a specialist in the field. Don’t try and tack something on to your car insurance or household cover. Different companies specialize in different fields and you will have the best cover working with specialists.

Shop around

Never be satisfied with the price that you are given. The insurance industry is a competitive space and companies are eager to get your business – especially if you are a responsible person with a good track record of low claims and regular premium payments. So, work the angles and play the one company off against the next. Make it a race to the bottom with you as the winner!

Get the numbers right

In taking out a policy you need to be realistic. It is very easy for an insurance company to lower premiums if they increase the excess that you need to pay. Don’t let this happen. Similarly, make sure that the items you are insuring are done so for the right value.

Don’t overstate the value of your assets; it will not benefit you at all. If, for example, you managed to write-off your car, the insurance company will pay you out for the actual book value of the car, if you have suggested that the car is worth more than the book value then you will have to find a way to prove that. If you cannot, then the premiums you have been paying have been too much for the item that you have covered. You will be the loser.

The same applies to the excess. It might be convenient to pay lower monthly premiums, but if that translates into an unaffordable excess in the event of an accident, then there really is no point in taking out the policy in the first place.