Finding the Best Insurance Coverage is Easy Once You Know How to Negotiate with Providers
Whether you’re shopping around for car, travel, life or health insurance, this insurance buying guide will help you obtain an insurance policy at a competitive price but still provide a comprehensive level of coverage. Many people look for the cheapest policy but be warned — it’s not necessarily going to deliver and you’ll likely be left with out of pocket expenses.
Tips to save money and obtain the best insurance coverage
What’s important to you? Make a list. If you’re in the market for car insurance, your top priority may be to insure against damage to third-party vehicles, theft or the full replacement cost of your new car. Whatever the reason, ensure that you buy insurance for the right reasons and not strictly based on price because it will come back to haunt you.
- Does the insurance company provide quality customer service? When comparing insurance quotes, ask the provider what the procedure is if there was a problem with your claim. A good insurance provider will have a toll-free, 24-hour number you can call. Does the person on the other end of the phone exhibit good industry knowledge? Are they friendly and helpful?
- Examine the insurance policy. Is the policy simple to understand? A policy can be quite confusing if it is long, uses complicated words or is hard to navigate. Insurance providers should be upfront and honest. A clear, concise insurance policy will help you understand your policy.
- When comparing insurance coverage, keep a running list of the different terms presented in each policy. This way you will become familiar with the basics of that type of policy and notice things that may be lacking in other policies.
- When comparing insurance quotes, record the premium charges, the excess charges and any discounts that may be available. For example, a provider may offer a 15% discount for premiums paid annually or if you sign up online.
- Research the insurance company. This is important as you must be comfortable that the provider is financially stable and can pay out on claims if need be. We cover more on this topic in the researching insurance providers section.
- Investigate the company’s track record for handling insurance claims. This is very important as it is often a very stressful time and you don’t want to experience difficulty with your insurance company. The claims process should be easy and efficient. Ask the insurance provider how claims are handled and if the assessor will come to your home. What is the typical turnaround time for an insurance claim payout?
- Another important question you should ask the provider is how often the rates increase. If you were to file a claim, can you expect a premium increase?