How to Get the Best Value on an Insurance Policy

When selecting an insurance policy for your home, car, or business, you want the best value. From monthly payments to premiums and deductibles, you will invest in your insurance policy. Choosing the right policy ensures you get an adequate return on your investment.

There are countless options when you start your search for an insurance policy. With so many companies, insurance types, policies, premiums, and add-ons to choose from, it can quickly become overwhelming. Follow these simple tips to get the best value on any insurance policy.

Pick the Right Insurance Company
It can be tempting to shop for insurance policies based on price alone. However, the reputation of your insurer is crucial. The company you choose must be stable enough to pay claims you make and stay in business long enough to protect your assets. If you invest in an insurance policy only for the company to go belly-up, you are out a pretty penny.

Whether you choose a major, nationwide insurer or a local, regional chain, you should consider the company’s history and reputation. There are several insurance rating organizations that provide detailed reviews on insurance companies. Finding an A-rated insurance company can help protect your assets and your investment in your insurance policy.

Determine How Much Coverage You Need
Getting the best value on your insurance policy will require some homework. You can rely on your insurance agent to suggest which types of coverage you need, but you should really do some of the research for yourself. Your insurance policy needs to adequately protect your assets, including your home, vehicles, and business.

There are several types of insurance coverage available for both personal insurance and business insurance. Research each type to understand what is covered before deciding how much coverage you need.

Compare Premiums
There are multiple options when it comes to comparing insurance premiums. You can get quotes from several agencies, including national chains and regional agencies to determine who offers the best premium. You can also use online comparison tools to get a snapshot of the pricing available for your unique needs. Shopping around for insurance premiums ensures you get the best value for your policy.

Look for Discounts
You may qualify for discounts on your insurance policy, including a reduction in premium. Reach out to the customer service department of the insurance company you are interested in to ask about available discounts, or speak to your local insurance agent or regional agency about which discounts you qualify for.

With discounts in place, you can enjoy lower rates on your insurance. Common discounts include bundling home and car insurance, insuring multiple cars, clean driving records, paying your premium up-front, security features on your home or car, and more. This is another time when it is important to compare reputable insurers because you may qualify for more discounts with one over another.

Lower Your Risk
To enjoy lower insurance rates and premiums, you have to be considered a good risk. There are ways to improve your risk profile and make yourself more attractive for insurance companies. For example, taking a defensive driving class could help improve your driving record. Also, adding security features or safety devices to your car or home could lower your risk of theft.

These efforts tell an insurance company that they will have to spend less money on you. With a clean driving record or anti-theft devices on your car, you are at a lower risk of an accident or loss. By improving your risk profile, you can potentially lower your insurance premiums.

Improve Your Credit Score
For some insurance policies, like car insurance, your quote can be greatly impacted by your credit score. Some insurance companies have found connections between a person’s credit and their likelihood of filing an insurance claim. If your credit is poor, you could end up paying hundreds more per year on insurance rates.

This step takes time, but it has the potential to significantly lower your insurance rates. Pay your bills on time and reduce your debt in order to improve your credit score. Regularly check your credit score to look for improvements, and request new insurance quotes when you have obtained a good credit score.

Understand Your Policy
When you think you’ve found the right insurance policy, make sure you understand exactly what is included. From your deductible to policy due dates, learn your policy inside and out. Your insurance agent can sit with you to discuss each aspect of your policy, including coverage limits and specific terms. If there is anything you do not understand, ask! You can get the most out of your insurance policy when you know exactly what it protects.