Insurance is something that everyone needs, whether it be for your home, life or car. The first step to getting insurance is to determine what type of insurance you need, as well as what limits of insurance will be necessary to protect you. Common types of insurance include:
- Automobile Insurance
- Leisure Vehicle Insurance including Boat, RV, ATV and Motorcycle
- Homeowners Insurance
- Renters Insurance
- Commercial Businessowners Insurance
- Liability Umbrella Insurance
The type of insurance you need will be determined by the type of property you are attempting to protect in the event of a loss. After you have determined what insurance will fit your needs, you will need to get a quote from a reputable insurance carrier. There are three common ways to get a quote for insurance.
- In person. Many insurance carriers operate through agents. An agent can be found in your local neighborhood and they act as a representative for the insurance carrier. Visit your local agent and let him know what type of insurance you are looking to get a quote for. The agent will work with you and the insurance carrier to get you a quote to fit your needs.
Over the phone. You can also contact the insurance carrier directly by phone. Give the insurance carrier a call and ask to speak with a new policy representative. They will take down some basic information for an application and then provide you with a quote for coverage.
Through the Internet. The newest way to get an insurance quote is quickly becoming the most popular. Navigate your way to the website of your insurance carrier of choice and click on the link for Get A Quote. You will be asked to fill out an online application for insurance, which will be submitted for review. Some websites will provide you with an instant quote, while others will pass your information on to either a local agent or policy representative to contact you with the quote.
Once you receive your quote, it is important that you look beyond the premium that is being quoted. Other factors to consider in an insurance quote are:
- Coverages being offered. Is the coverage you are being quoted for replacement cost or depreciated value? Are all coverages you need being offered, or is the quote stripped down to look more appealing?
Deductible. The deductible is your responsibility for any claim that you file. Deductibles can typically range from $100 to $2,500 depending on your coverage. A policy with a $100 deductible is going to have a higher premium than a policy with a $1,000 deductible. However, in the event of a loss, the amount you will be responsible for varies greatly. Make sure the deductible is something you can work into your budget without notice.
Limits of insurance. If you insure your home for $100,000 it will certainly cost you less than insuring it for $200,000, but will $100,000 be sufficient should the worst case scenario happen? Be sure that the policy you are signing up for offers sufficient coverage in the event of a worst case scenario.
Policy period. Some carriers will offer six month policies, while others offer annual policy periods. A six month policy should run about half the cost of an annual quote, so double check the policy period when comparing quotes.
Depreciated value vs. replacement cost. Some policies will be written to only pay you what the item that was damaged is currently worth. For example, your 5 year old television set is not worth the same as a new television. A depreciated value policy would pay you the current value of your television, while a replacement cost policy will pay you what it will actually cost you to go to a local electronics store to buy a new television.
You have now received your quotes and reviewed them to determine what best fits your needs. Contact your insurance carrier of choice and let them know you accept their quote. You are now on your way to having the right coverage to fit your needs!