What Insurance to Buy

We’d all like to know that the things we’ve worked hard for won’t suddenly evaporate. There are several problems that could cause us to lose something we own. The whole insurance industry was born because of this daunting uncertainty. Should you purchase insurance, or is it just a strategy to get your dollars by playing on your worries? The answer is both. Some kinds of insurance policies are a very advantageous proposal, and some are a waste of money. How can you judge the difference?

Start with the things that you can’t afford to lose. Keep in mind your prospective resources in addition to your current ones. The main factors for almost everyone are health, auto, home and liability. Many people would not have enough money for the worst case scenario in these areas. Liability insurance is usually a component of something else, like auto insurance or homeowner’s insurance. Umbrella insurance is available to cover any liabilities above and beyond those covered by existing policies. You might imagine that you can do without liability insurance if you don’t have significant assets. But a judgement against you could garnish future salary, so don’t reject it automatically.

These basic kinds of policies have been available for a long time. Many reputable businesses offer it, so you can shop around. Be sure you take the time to get more than a few quotes. Fortunately many companies offer instant online quotes. You can get quotes from several motorcycle insurance companies in just a few minutes. Insurance companies allocate risk differently, so there may be a wide variance in premiums for your specific circumstances. In your specific situation, one company could offer a much better premium than another. Also make sure you compare the coverage. If you have a loan on something, like a house or a car, the lender often requires specific insurance. This might make it easier to compare apples to apples.

Once you’ve considered the must-have insurance, look at any other belongings you might want to insure. You can purchase pet insurance, an extended warranty on a computer, or travel insurance for a vacation. If you suffered a loss related to any of these things, you would probably get by. You might prefer, however, to pay a little bit each month to avoid a financial surprise. Since the potential loss is lower, the premium should also be significantly lower. Do the math on what costs you might incur and compare the premiums.

Find out if you already have coverage. For example, if your brand new dishwasher stops working, it might be covered by the manufacturer’s warranty. Your credit card company might offer protection on items you purchased with the card for free.

You might also consider self insurance if you are good at managing money.

It’s often less expensive to insure several things with a single policy. Your homeowner’s or renter’s policy could cover some of your belongings against some risks. Umbrella policies cover liability that might result from a car accident or an injury on your property as well as a variety of other situations.

You shouldn’t just purchase whatever insurance policies are offered by sales people. Rather you should make an inclusive strategy that meets your needs.