Now that you’re an adult with adult responsibilities, you can no longer call your dad to handle your insurance chores. If this is your first time dealing with insurance, no matter if health, life, house or car kind, there are many things to know before you sign any papers. Once you understand the basics and know what to keep your eye on, everything insurance-related will be much clearer. Here are a few tips for all those who are new to insurance:
Find good coverage and a responsible insurer
It’s very logical that the main thing to pay attention to when buying insurance is coverage. First, determine what kind of coverage fits your needs, then try to make it fit into your budget. You can also check which carrier has the policy that fits your health and property the best. Most people are tempted to go with the lowest bidder, but your claim won’t bring you any benefits if this cheap policy doesn’t provide enough coverage.
Add extra coverage
In most cases, people can’t find only one policy to cover all their needs. In that case, adding extra coverage can provide you with the most comprehensive protection. Maybe you have many precious art items at home or valuable electronics, all of which would be impossible to replace with your basic renters/homeowners policy. In that case, buy an additional insurance for those items.
Avoid junk insurance
While it’s important to be properly insured from all sides, there are policies that do nothing but steal your money. For instance, when buying a car and getting a loan, you might be almost forced to get add-ons like Consumer Credit Insurance, Guaranteed Asset Protection, Mechanical Breakdown Insurance and similar confusing policies. These all come with many catches and rarely give out any money—hence they are called junk insurance. It’s illegal to sell these policies in many places, like Australia for instance, so if you go over your reports and notice any of the mentioned add-ons, you might be eligible for a refund. It’s possible to refund junk insurance if you work with the right agency. Professionals will gather info, file complaints, and ensure you get your money back.
You’re never too young for life insurance
Young people often feel invincible, unaware of their vulnerability and mortality. In reality, it’s never too early to get life insurance because accidents can strike at any time. And it’s cheaper to buy life insurance while you’re still young and healthy. In case something happens, your family will be covered against unexpected costs like your student loans, debt, mortgage, end-of-life costs, etc. Your life insurance can help pay for your kids’ education as well. It’s also wise to look into long-term disability coverage, which helps users stay financially stable in case of an accident or disease that prevents them from working.
Find an independent agent
When purchasing your first insurance, finding an independent agent is crucial. These agents work with many different insurance carriers, unlike captive agents who only work with one. The benefits of working with independent agents are various: they will protect your interests, help you get truly the best coverage for your car, health and property, give you the best price, share all the knowledge with you and help you with your choices. Since they don’t have to protect the interests of one company, independent agents are free to be honest, help you look for discounts and be open if you need to change your insurance policies down the line.
Try to save money
When choosing the right coverage, the focus is always on the policy, but sometimes, we’re forced to think about our budgets as well. Try to discuss any discounts on your coverage with your agent. Often, you can get discounts if you choose to pay in full, have a good driving record, attend school and get good academic results. You can also try to grab bundle policies (like getting auto and home insurance from the same provider) and save some money in the process.
Insurance is not that scary once you read more about it. Hopefully, you’ll use these tips to choose the best insurance for you and end up covered and safe.