In case of an emergency, insurance can help protect your finances. But one shouldn't pay excessively for this protection. Whether you're buying a policy for the first time or have had coverage for years one should take into account the following points.
1. With low auto and homeowners insurance deductibles, you often pay more in premiums than you can recover in claims. Low deductibles also encourage you to make less claims, which could cost you a claims-free discount or prompt your insurer to drop you.
2. You won't be accredited for some discounts unless you tell your insurer that you deserve one. The list differs from company to company but often includes installing a home alarm system, adding storm-proof shutters and even working at some occupations.
3. The insurer that offered you the lowest rate a few years ago may no longer offer you the same. Try to get price quotes from different insurers whenever you expect or face a major change.
4. Switching insurers just to save a few dollars can fire back if the new company annoys you on claims. Keep acquaintance with the insurer's customer-service rating through a reliable source, and avoid companies with a high complaint ratio.
5. If your employer offers Free group life insurance, it's a great benefit! But if your boss offers extra life insurance for an extra-payment, don't just say yes without inquiring. Insurers that offer group policies assuming that ones who are in a bad health, will apply. They also tend to trigger their rates every five years instead of fixing rate for 20 or 30 years.
6. Employers are required to let you continue on their group health insurance policies for up to 18 months after you leave your job its actually in accordance with the federal law known as COBRA. But you have to pay 102% of the cost yourself, normally most employers pay 60% to 75% of the premiums for their employees. You could surely get a better deal on your own.
7.The standard advice is to get life insurance equal to 12 times your annual income. But two people who earn the same income may need very different amounts of coverage.
8. The insurance value and the market value are both different. You need enough insurance to pay for the repairs of your home if it is destroyed. But you'll still have the valuation of the land, which is portion of the market value.
9. Besides boosting premiums, health insurers have also been penetrating rates in less-obvious ways such as by raising coinsurance rates and adding new pricing tiers for prescription drugs. You could also pay more then needed in out-of-pocket costs if your doctors aren't in your plan's network. Compare overall costs and limits, make sure your doctors are in-network.
10. Not asking or taking advice or suggestions from relatives or friends may also be a big mistake, and the only way to avoid one would be to enter into discussion and taking advises from experts or experienced people.
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Article Source: http://EzineArticles.com/expert/Adam_J_Lambert/1689992
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