If you’re like the rest of us, you don’t want to pay a penny more on your home insurance rates than you have to. And with so many low rates being advertised in the media nowadays, it can be tempting to simply choose the lowest rate you can find. However, it’s important to understand that there’s more to choosing great coverage than simply selecting the most affordable home insurance out there.
Low Rates Might Not Offer Adequate Coverage
Though some insurance companies offer special deals and discounts that are usually valid for six to 12 months and do offer good coverage, there are always companies that offer extremely low rates for an unlimited period of time. But often times, even if the coverage amounts are adequate, you’ll find that the companies are lacking in other ways or sometimes are just plain scams. For instance, there are fraudulent companies that never pay out claims. Others don’t send out agents when you need them, and leave you waiting for your money for weeks. And in the event of a claim, that’s the last thing you need.
Finding Reliable and Affordable Home Insurance
The bottom line is, when you’re shopping for affordable home insurance, don’t simply choose the policy with the lowest rates. Find out exactly what types of damages are covered and for how much, and read the fine print to see if the low rates are a special offer that comes with specific conditions. Go online and do a search on the insurance company to see what other consumers say about it, and check with the Better Business Bureau to find out how the company is rated and whether there are any complaints about it.
Comparing auto insurance quotes can be confusing and even overwhelming – especially if you have never bought car insurance before and want the best coverage possible. What follows are four easy to follow tips for comparing auto insurance quotes.
- Look at the amounts of each of the premiums on the insurance quotes to make sure they are reasonable. Most drivers prefer to pay their premiums every month, but it’s also possible to pay your annual premium in one payment and save cash.
- For each type of coverage offered under the policies, check to see the deductible amount. In the event of a claim, you always have to pay the deductible first before the coverage kicks in, so you want to make sure it’s something you can afford.
- Read each quote carefully to see if they provide the type of coverage you want. For example, if you want protection in the event of an accident, but also just for random damages due to falling objects, you’ll need liability, collision and comprehensive coverage.
- Do the quotes offer the amount of coverage you want? Different policies offer different coverage amounts, and you need to buy insurance that offers you what you feel to be an adequate sum in the event of any claims or accidents. If you have a family or other dependents, make sure your coverage protects your family in the event that you’re injured and unable to provide for them.
Though many people become complacent with their policy, auto insurance should be reviewed on a regular basis by the policyholder. Most Texas insurance policies renew every six months, so many people opt for this continual renewal even though their premium slowly gets larger and larger for the same coverage. There are ways to compare and lower your current interest rates.
One way to save on insurance premiums is to get new quotes from other companies. Insurance companies have to compete for business, and many of them try to keep rates as low as possible to attract new business. When getting new quotes remember to keep the coverages the same. Some companies want to quote lower coverage amounts in order to get the rates low therefore offering a policy that is less effective.
Another way to compare Texas coverages is to have your current agent review the policy to see if there are any discounts that they can offer that they were not able to offer before. Agents are eager to keep current business and will attempt to help. So most insurance agents in Texas will try to lower you rate to keep your policy.
One final way to compare policies is to have a brokering company quote multiple companies at the same time. This way you can get several quotes and compare them side by side in little to no time at all. Then you can make an educated decision as to which one is best for you.
Every person has asked a question about what the best coverages to carry on an auto policy is. Some people feel that the minimum coverage amounts are all that is needed and others feel that the highest coverage’s are the best.
How do the limits of liability work?
The limits of liability are set coverage amounts that are picked by the policy owner when they purchase the policy from an insurance agent. Suppose a policy owner buys a policy with limits of liability set at 25/50/25. The policy will pay out $25,000 per person, $50,000 per accident, and $25,000 for property damage.
How many different levels of liability are there?
The different limits of liability are usually set and agreed upon by the insurance commission and the insurance company. The typical liability limits are 25/50/25, 50/100/50, 100/300/50, and 250/500/100. There are also different levels for property damage. It can be as low as $25,000 and as high as $100,000.
Why are there different levels of liability?
There are different levels of liability so the consumer has a choice in the level of protection they want to have on their insurance.
What is the best level of liability coverage to have?
Limits of liability are to be chosen for protection against the possibility of a life changing accident. Some people carry the minimum limits and they are satisfied with those levels. One thing to think about is the cost of repair to a person’s car and possible medical bills in the not-at-fault party is hurt. Most insurance agents will claim that the higher limits of liability are better. If the amount of insurance is not enough to pay for the entire accident, the suffering party can sue for unpaid damages. Any unpaid bills will come out of the at-fault party’s pocket. Insurance agents will usually recommend 100/300/100 or 250/500/100. It is best to consult an insurance agent for a fuller understanding.
When you start shopping around for car and home insurance in Texas, your agent is going to want you to spend as much as possible for these policies. Asking the right questions may not only save you money, but will also help you make the right decision as to which type of coverage is best for you.
1. What does your “bare minimum” policy cover?
Ask the agent to show you this first, rather than the highest-priced one. You simply may not need all the “bells and whistles” that come with more expensive policies.
2. What discounts am I entitled to?
The agent will probably give you a few examples of the discounts the company offers, but push him for more.
3. I already have an auto insurance policy with you. Am I getting all the discounts I’m entitled to on my current policy? If not, can I get them now?
It’s a good idea to re-examine your policy every few years. Things change, and some of these changes may mean you’re entitled to more discounts than you were before.
4. If I get both home and auto insurance with your company, will my premiums be cheaper?
Chances are the answer to this question will be “yes”.
5. Will you honor (insert competitor insurance company’s name here) discounts and differences in coverage amounts?
This is where comparison-shopping can come in handy. Find out what discounts other insurance companies offer and ask him if he’ll honor these. Also, get their price quote in writing. Faced with the actual figures and information, the agent may be willing to negotiate.