At some point in your life you are going to have to get some type of insurance coverage, be that for your car, home or business. Insurance is there to protect you and others against loss. There is insurance for almost everything but the most common types of insurance are home, auto, health and life insurance. Let’s have a look at the basics of insurance to help you navigate these complicated policies and coverage.
Auto insurance is necessary in most states for any motorized vehicle including trucks, cars and motorcycles. It is there to protect you and others in the event of a traffic accident. Depending on your policy it can cover damaged property including your car and other cars, medical costs if someone is hurt and liability. Auto insurance rates can vary but young drivers and those with poor driving records will have the highest premiums. Find cheap car insurance in Denver here
Home insurance is there to protect you from losses if there is damage to your home. Depending on the type of coverage you have it will cover losses from fire, storms, replacing the contents of your home and your own personal possessions. If you live in a state where natural disasters can be quite common, for example hurricanes in Florida it may be necessary to buy additional coverage for these events. Always check with your agent to verify what is covered in your policy. Here is an overview of homeowner’s insurance and the type of coverage.
Health insurance is there to cover your medical bills when you are ill or injured. However this is by far the most complicate branch of insurance coverage available. You can have your health insurance through your place of business or buy your coverage individually. Premiums can vary with age, health and occupation and there are vast differences in coverage from state to state.
Lastly, there is life insurance where the insurance company pays a sum of money to your beneficiaries when you pass away. Each month you pay the insurance company a lump sum or a premium. There are different types of life insurance policies, whole and term policies. Term policies are in effect for a specific period of time and whole can be for the duration of your life. There are other differences between the two as well, some will cover critical illness and others retain some cash value. You should speak with an insurance agent or broker to see which is right for you.
Home insurance is a must-have especially if you have a mortgage, but that doesn’t mean you can’t try and get the best deal on premiums that you can. There are some insider secrets to save on your homeowner’s policy. You will have to speak with your insurance agent to see which discounts their particular company offers but here are some of the more common discounts available.
Home Alarm System
If you have fire and theft coverage on your policy then many companies will offer you a rebate if you also install a monitored alarm system. These types of alarms will contact fire or police on your behalf if something happens at your home. Monitored alarms have come down in price but that can still be expensive so check with your insurance company about the discount before you buy.
If you belong to AAA or AARP you may also be entitled to a discount from your insurance, again you will have to check with your agent to see if they offer a discount for belonging to either association.
Raise Your Deductible
When you buy your policy most insurance companies will automatically set your policy to a lower deductible, usually around $500. If you increase that amount to $1,000 or higher if you are comfortable then you can save up to 20% on your monthly premiums. The deductible is the amount of money that you will have to pay in costs before your insurance kicks in, make sure that the amount you set for the deductible is manageable in case something happens.
Bundle Your Policies
Most insurance companies will offer you a discount if you are willing to move your car insurance or other insurance policies to the same company. You need to do the math first and make sure that one policy is cheaper than using more than one carrier. Most often the agent will offer the discount to you when you purchase the policy, if not feel free to ask.
Having Good Credit
Many insurance companies will give you a better rate for having a good credit score. This is one more reason to check your credit score at least once a year, also check with your agent to see if the discount is possible.
Last but not least make sure you get quotes from several different companies, the rate between insurance companies can vary drastically. You can talk with an independent agent that deals with multiple companies, they can put together rates from a dozen or more companies for you to look at. Bear in mind that coverage will differ as well, make sure that the policy includes the coverage that you need.