Low cost insurance: where to draw the line

The most popular topic of discussion when you think “insurance” is ‘low cost insurance’. Since insurance rates depend on so many factors unique to each person you’re never sure whether you are getting yours at a good price or not. In the quest for good coverage at lowest possible prices, often people end up overlooking important facts that can ruin their chances of getting adequate compensation when they need to claim, defeating the purpose of “cheap insurance”. Here are some things to consider while deciding on a low cost insurance policy.

Never shop only for “low price” – Look for a company that answers your questions, has good customer service and handles claims fairly and efficiently. It is very important to check an insurance company’s claim handling history and then decide whether they are worth investing in or not.

Keep your deductable amount manageable – It is a known fact that the higher your deductible, the more money you save on your premium. However remember at all times, you have to be able to pay the deductible to make a claim, so fix an amount that you can comfortably shell out at a short notice.

Don’t buy the cheapest insurance just because your Insurance agent says so. – Buy the coverage that meets your needs best, run your insurance policy through a fine comb to learn what you are being covered for and what is being left out. Often policies from two companies cost different because of differences in coverages offered.

Never Underinsure – By doing so, you defeat the entire purpose of buying insurance in the first place. If you have to shell money from your pocket for repairing damages to your car AND shelling a deductible to get a claim addressed, it’s entirely your loss!

Not all multi-policies save you money – Some insurance companies will reduce your premium by 5 percent to 15 percent if you buy two or more insurance policies from them- for example auto and home insurance. But make certain this combined price is lower than buying the coverages from different companies.

Get lots of Liability coverage – If you are found guilty in an accident, you want to be able to pay up the other party without mortgaging your assets. High liability insurance is always a good idea. In fact Umbrella insurance is also highly recommended to provide extra liability coverages especially if you are dragged into a lawsuit.

Look for any value added benefits/ features one insurance company offers better than the other – You might need that rental car service while your car has gone for repairs. Did you sign up for it while buying your auto insurance policy? One company might offer lower rates, while another might give you better, more comprehensive coverage also throwing in a lot of free services. Choose carefully.

Do not confuse life insurance with a savings account – An “Accidental death / Travel accident” insurance will have very limited coverage; it will not pay your dependants anything if you die due to natural causes. However, full life insurance coverage will not only cover both but a whole lot of other scenarios as well.

Negotiation works – If while shopping around, you come across lower rates, bring them to the notice of your present insurance company; chances are they will throw in an additional discount or two rather than lose a long standing customer. It’s a win win situation for you as you stick with a company you trust and get better rates with them.

Summing up, while it’s a great idea to look for value for money insurance, choose carefully; factor in important considerations like customer service, claim handling reputation and coverages offered by the insurance company you wish to go with. Insure wisely so that you do not lose money when you really need it.

Online Cars Insurance Quote

Get a Full Coverage Auto Insurance