Five Essential Considerations for a Savvy Insurance Buyer

by MarketProSecure UK

There are dozens of jokes about insurance salespersons and how to avoid them. OK, maybe there is a reason for this embarrassment of riches. However insurance is no joke. People die and leave families behind who must continue to pay house payments, car payments and other expenses. Workers get sick and cannot work. Many of those workers will not receive pay checks and they could have added financial burdens, such as doctor bills, hospital bills and medications. Homes burn, visitors trip over lose bricks and dogs bite insurance salesmen at the door. Automobile accidents happen with amazing regularity. We certainly do not want these things to happen, but it is reassuring to know we are as prepared as possible with the appropriate coverages. It is convenient to be able to compare various insurance policies and premiums free of charge and find the best deals. Before you begin your comparison let's discuss a few insurance fundamentals.

Generally speaking, insurance is protection against a financial loss. If you incur a covered expense, your insurance company will pay (under stated circumstances) your covered expenses.

Five Essential Considerations:

[1] Compare apples to apples.

Many consumers compare insurance polices without realizing the benefits are not the same for every policy. When comparing policies (i.e., homeowner, automobile or travel), look for essential details, such as premium, coverage, deductibles and exclusions. If the policy covers you only when you are standing on a stone bridge built by the Romans, at midnight during a solar eclipse, with a dead chicken in your hand, you really should move on to a policy with more breadth and depth.

[2] Choosing the appropriate policy.

Understand your circumstances and needs. If you are a college student with a measly income, barely meeting your financial obligations you probably don't need £3,000,000 in whole life insurance… especially if you are single and childless. True, you can buy a £3,000,000 whole life policy for a much less when you are young, but do you truly need that much coverage? If you own a vehicle you certainly need adequate car insurance. If your parents are not covering you on their health insurance, you need coverage. If you can fit employment into your busy schedule, you may get health coverage as a benefit. Families need adequate coverages for likely mishaps and illnesses. Yes, you absolutely need it! If you own a home, you must have a comprehensive homeowner policy. If you rent, then you probably want coverage for liability and your contents. In other words, know what you need and choose the policy that meets your needs.

[3] Property Insurance: Understand the coverages and terms.

What does the policy cover? If it is a homeowner policy, how much coverage do you need? Your mortgage company will have certain ideas about the amount. What is the value of your home? If it burns you will probably want to rebuild or buy a similar house. Replacement cost and current market value are not necessarily the same. I have a 100 year old home in a small Southern town. Its current market value is much less than its replacement cost. My wood walls, floors and ceilings would be extremely expensive to duplicate in today’s building materials market. As you compare UK insurance policies be certain that you understand the terms and coverages.

[4] Understanding health insurance policies.

A health insurance policy is an agreement between you and a health insurance provider. An insurance agreement explains the types of benefits included and the cost. These policies are likely to cover tests, drugs and treatment services. Your agreement spells out the covered benefits. You should know what is and what is not covered by your policy.

If a treatment or service is not covered you must pay for it yourself. Bummer!

[5] Automobile Insurance Savvy

Car insurance is something most of us need. It pays to understand your policy. After an accident or claim is not a good time to discover you don't have the coverages you believed you had. Primarily, automobile insurance covers liability and property damage. Premiums vary greatly from company to company. Much of the premium is based on your age, driver's record and the vehicle you drive. If you insure a 2008 Chevrolet Corvette your insurance premium will be much higher than it would be if you insured a 1995 Ford Escort. Traffic tickets and accidents, a younger age and the in area in which you reside can also negatively affect your premium.

If you want to reduce your premiums, deductibles are one way to do that. The higher your deducible the lower your insurance premium. Just be certain you can conveniently pay the deductible without selling the dog if you have a claim.

Compare, Compare, Compare

Make yourself comfortable, put on some melodious music, grab a latte and compare insurance policies and premiums. We have a great selection for you. When you make a wise and well considered choice apply on line with confidence. We value your security.

Published: April 16, 2008

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