Three steps to buying Insurance
It wasn't too long ago that most people simply bought whatever insurance was mandated by the government and lenders, or recommended by insurance agents and friends.
Nowadays, the Internet has it all, and most of it is free. By far and away, this type of comparison shopping is the activity in which the Internet has had the most dramatic impact.
Use these three steps when buying insurance:
Step One:
Do I need this type of insurance at all? Figure out what the type of insurance you are considering covers and decide whether you need it.
Step Two:
How much of this type of insurance do I need? Policies vary in how much they cover. Some cover specific dollar amounts. Others cover percent of loss. Some have a deductible. Others exclude certain types of damage. Look at these differences among policies and decide which one is for you.
Step Three:
Where will I buy it? You'll be able to buy insurance almost anywhere, especially simple products such as term life insurance. The days of depending on a local insurance agency for everything are rapidly becoming a thing of the past.
If you are working on your own, the web has a host of services to help you comparison shop among companies.
Type in "insurance" on most search engines and you will come up with a number of sites. If you are working with an agent, you may be working with a captive agent which means he/she can only sell you policies form one company or an independent agent which represents several.
When selecting a company, consider also whether the company is both able and willing to pay on claims should you make one. You can also ask the company itself or your agent.
Consider also the company's record for trying to refuse to pay claims. Your state insurance commission may have a record of complaints.
When buying any insurance, you will most likely save money if you pay annually or semi-annually. Sometimes buying several types of insurance from the same company will save you money.
When shopping for insurance, also look into group policies offered by alumni associations, professional associations, or religious bodies.
Usually you can forget about specialized insurance advertised on television with paid endorsers. They usually cover very little.