Buying insurance is a considerable investment, and if you do not do your homework beforehand then you could end up with a policy that is not right for your needs. The last thing you want is to be left with are bills you cannot afford, or a policy that does not cover you when the need arises! So, here are three important things to remember when buying insurance.
Remember To Shop Around
It can be easy to become overwhelmed when searching for insurance and to simply go for whatever pops up first when doing a quick Google search. However, it is important to shop around to not only get the best price but also the best cover for your needs.
There are many ways to buy insurance, and you should not assume that insurance bought from a comparison site is automatically the cheapest. Ask your friends and family for advice on insurers they have used before or consider chatting to an insurance broker directly.
Aside from comparing prices and levels of cover, make sure to check out customer reviews from people that have tried to make claims in the past as well. Some insurers are exceptionally good at avoiding payouts for claims, with hidden exclusion clauses keeping paying customers from receiving the compensation they deserve; and the only way to find this information is from customer reviews.
Ensure The Policy Covers Everything You Need it To
There is nothing worse than having to claim on your insurance only to find you are not covered.
When purchasing insurance make sure to read through the policy document carefully, double-checking the features that are most important to you. Otherwise, you could potentially be wasting money on things you do not need and forgoing the bits you do!
Ask the insurer specifically what they do not cover in the policy. Every insurance policy will have “exclusions”, perils that are not covered, so make sure your provider takes you through these from the beginning.
Remember, if you have already bought a policy then you will have a couple of weeks to change your mind and cancel or amend a policy if it turns out it is not for you.
Re-evaluate Your Coverage
As your life changes and evolves so will your insurance policy needs.
You may have a new car, have gotten married, divorced, or moved home. Whenever you have a significant life change you will likely need to revisit your insurance coverage, adapting your policy to fit with new risk exposures. After all, you do not want to be caught out under or over-insuring when the need for a claim arises.
Even if you have no major life changes it is still prudent to check and re-evaluate your insurance coverage yearly. Many insurance policies will have the option to automatically renew at the end of the year, and it is easy to simply let this happen.
However, the cost of a policy can fluctuate greatly due to the smallest changes, and if you don’t check then you could well be spending more than you need. There may even be ways you can reduce your premium for things such as car insurance, that you may not have considered previously.