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Friday, 23 September 2011

How To Be An Informed Insurance Customer

Being a savvy insurance customer can save you hundreds, if not thousands, of dollars. Knowing your insurance needs and the amount of coverage you require is essential. Today, we will look at how you can be a more informed insurance customer.

Insure with a broker
Independent insurance brokers differ from insurance providers in that they work directly for you to select the best insurance policy from the various policies out there. Because insurance policies vary drastically between companies, it's in your financial interest to have a broker find you the best rates possible. If you insure through one company directly, you are limited to their policies and will not be able to find the best possible rate. 

Request quotes based on different deductibles
For most policies, your premiums change based on the deductible you choose. The higher your deductible, the less you pay on premiums. This gives you the flexibility to adjust the amount of money you pay for insurance. If you feel that you are at a great risk for a certain peril, you can lower your deductible and pay a little more for premiums. If you are fairly certain you won't need to make a claim, increase your deductible and decrease your monthly insurance expenses. 

Shop around
Shopping around is the single best way of saving money on insurance. This is why 80% of property and casualty insurance is purchased through insurance brokers; they are able to shop around for you and keep you from overpaying for insurance! As a customer, be sure to discuss other policies with your broker and regularly check with them to see if there are better options for you. 

Remember that the lowest price does not mean the best insurance
You must always balance the price you're paying for the coverage you receive. Read through your policy to know your coverage limits and the perils you're insured for. Almost every policy out there has exceptions and exclusion clauses, which outline which perils you are NOT covered for. Be sure you know these and adjust your policy to include them if need be.  

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