You may be looking for insurance coverage for your first time, or if you’re unsure if your current policy is sufficient. An agent is the best source for your insurance questions and concerns. Before you talk to an agent, it is important to understand how to choose the right one for you. Before you decide to hire an agent solely on its humor or promise of low rates, you need to understand the basics of insurance.
What is insurance? What type of protection can it provide?
There are insurance policies available for nearly every situation. There are homeowner’s and renter’s insurance options. You can also get insurance that covers you beyond what your basic insurance provides. This is called umbrella insurance. These coverages allow you transfer a certain amount of your liability onto an insurer for a fee. It is up to you to decide what type of insurance and how much coverage.
Meeting your state’s or lender’s insurance requirements is often just the beginning
Certain aspects of insurance cannot be changed, such as minimum requirements set by your bank/lender or state. The website of your state’s Department of Insurance outlines your legal responsibilities, whether you are a homeowner, driver or business owner. It also provides trustworthy resources and toolkits for many insurance-related topics. You may also have agreed to purchase insurance if you are financing a vehicle or a home. These insurance requirements are designed to lower the financial risk of others. These minimum insurance requirements won’t protect you financially in the event that there is a major accident, lawsuit, or other disaster. It is important to consider obtaining the insurance you need from your bank or state as a starting point.
Insurance needs to be customized to fit your specific circumstances
Only you know how much insurance you want and what risk you accept. Consider your assets and the risk you are willing to take. What would happen if you suffered a major loss? Can you afford to pay for repairs and a large deductible or can they? What happens if your property is damaged or you are sued? Is it possible to pay the legal fees? A great way to get started is to write down the assets that you want to protect. You can compare the pricing and benefits of different insurance providers. They will also be able to inform you about discounts that may apply if you have multiple policies with the same company. Your agent should be open to discussing your individual needs with you and customizing your policy to suit your circumstances.
Selecting an Agent or Insurance Company
Nearly every insurance company will tell customers that they need to purchase a policy with them because of their low rates, great benefits, and excellent service. How can you distinguish between highly rated insurance companies. If you’re looking for insurance, it is a good idea to work with an agent licensed in your area that represents several insurance companies. A captive agent is better if you feel strongly about an insurance company based on personal experience or referrals.
Although they are authorized to represent one insurance company, captive agents can be experts in all aspects of the company’s insurance products. Independent agents can represent multiple insurance companies, but they have a greater incentive to make customers happy. They are able to compare policies, assist you in changing carriers, and ensure you get the best rates possible. It’s a good idea to verify the license of the agent, to look for complaints at the Better Business Bureau, and to find recommendations on Yelp and Angie’s List. You want to communicate openly with your agent and not feel irritated. You can shop around for agents just as you would for insurance companies.
Revisit your Insurance Policy Every Year
You will need to be diligent once you have purchased a policy. Once you receive your policy in the mail, make sure to read it carefully and understand all terms. Ask your agent to clarify any ambiguities. You may be able to purchase supplemental coverages to fill in any gaps or limitations caused by exclusions. If your situation changes, you can adjust your deductible or limits. You should also review your policies with your agent every year or whenever there are major changes in your life such as a marriage change, family expansion, or a move to a different area.
