Car and home insurance are major purchases that will affect your wallet and, if you’re ever in an accident or caught up in some sort of disaster, change your life depending on the type of coverage you have. It’s not always easy to find out what the best car and home insurance for you are, but you can make serious strides towards the best possible plan by following a few guidelines and steps.
How to find the best car insurance
Step 1: Evaluate your needs. It’s impossible to find a car insurance plan to suit your needs unless you have a real sense of what those needs are.
Often, this is the hardest part of the process simply because it’s very difficult to take a truly objective look at oneself, which means either overpaying for a policy you don’t need or paying for a plan that doesn’t actually do much good.
So, start by taking a look at the number of cars in your family, if and how close they are to being paid off, your driving habits, and your driving history.
Do you have two cars that are both paid off, or three brand-new cars, or something in between? How long is your commute? Five miles? Fifty? Do you travel on lot on the weekends? Have you had any claims or accidents or moving violations lately? These are questions to keep in mind.
Also, consider your financial stability as well. Could you afford a lower deductible plan with a higher monthly rate, or are your finances better suited a higher deductible plan with a lower monthly premium?
Step 2: Choose between comprehensive or liability. One of the most important decisions to be made is whether you want comprehensive coverage or only liability coverage.
Liability coverage, generally the minimum auto insurance required by law, will pay for any damages you cause to others from an accident, for example, but won’t cover any of the damages to your own car. Comprehensive coverage does pay for the damages to your own vehicle and costs more as a result.
Step 3: Search for discounts. Discounts play a huge role in driving down your rates and shaping a plan to your needs.
Some common car insurance discounts are low-mileage discounts and discounts available to those in certain professions. You should ask a representative when you are searching for plans what discounts they offer and take advantage of as many as possible, including some discounts you may not have heard about before.
How to find the best home insurance
Step 1: Determine coverage needs. The level of coverage you need is going to vary based on your location and the adverse conditions that affect homes in your area.
For instance, if you live in Florida, hurricanes are a major danger. If you live in Alabama, tornadoes may be the culprit. If there are rarely events that could possibly damage your home, your coverage needs will probably be lower than in other regions.
Step 2: Research how companies deal with claims. Insurance is one of those things that you never think about until disaster strikes, and you want to know they have your back.
To prevent yourself from associating with a company that could really burn you, do your research beforehand. The best way to do this is by searching for customer reviews online. Reviews are always a little polarized: There are those who hate and those who love it. For this reason, you should read the complaints and praises carefully to look for patterns and to develop solid expectations.
Step 3: Consider bundling. Bundling means buying home and auto insurance through the same company, so you end up saving money. Be sure a single company can provide for all your needs reliably.
Getting the best car and home insurance is an essential part of safeguarding your investment and protecting finances in the event of a major accident or disaster. By keeping your needs in mind, the rate you pay will be for a plan that is tailored to your actual needs, giving you the protection and peace of mind that insurance should.