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INSURANCE: 5 important Insurance Policies Everyone Should know

Your Circumstances Have Improved
The timing of your insurance purchase can also have an
impact on your rates and is another reason why you want to
shop around fairly often. Take homeowner’s insurance again
as an example. If you bought the policy after a rash of crimes
or a big storm and things improved, your premiums could be
cheaper. With auto insurance , the same thinking applies. You
may have signed up for your policy when your credit score
had taken a hit, but now you’re in a better financial position
and your debts are paid off and your credit score has
improved. Or it may be that you had points on your driver’s
license that are now gone. In both instances, by shopping
around you are going to save money, and in some cases, a
lot of it.

Your Insured Items Got an Upgrade
Whether you own a home, car or fine art, what you pay for
insurance will be based on the perceived risk. The more that
risk is mitigated, the less you will pay in insurance. Take
health insurance for an example. Someone who is healthy will
pay less for insurance than someone who is sickly. But if that
sick person got better, then his insurance should be reduced.
The same can be said for an automobile or home. If you just
bought a security system for your home or automobile that is
going to lower your risk and thus your premiums. But if you
don’t shop around or at the very least let the insurance know
about the upgrades, you won’t be able to save.
You Have Too Much Coverage
Whether it is on purpose or by mistake, often people end up
with too much insurance coverage whether that’s for their
health, home, automobile or life. Insurance is supposed to
give you some peace of mind, but that doesn’t mean you have
to overpay for it. While you may not have to check up on your
insurance every year to make sure you have the proper
coverage, it is something you should want to do more often
than not. After all, you don’t want to have full coverage on
your automobile if it's more than 10 years old or $1 million
coverage on a $50,000 condo.
On the flip side, being underinsured can also be a costly
mistake. The last thing you want to happen is have a major
disaster and not have enough insurance to cover the repairs.
If we're talking about health insurance , not having enough of it
could end up bankrupting you.
You’re Missing Out on Discounts
Insurance companies are in a cutthroat industry, and they
want your business and will go to great lengths to attract and
retain you as a customer. Translation: discounts abound.
Whether you are shopping for homeowner's insurance, health
insurance or for car insurance, insurers are going to offer you
discounts that can range from single-digit to double-digit
percentage savings. There are discounts for your age, risk,
how many products you have with the company, whether you
are a member of a particular group and so on. If you don’t
shop around for your policies, you could be leaving money on
the table in discounts and deals.
The Bottom Line
Insurance is a necessary evil that is needed to give you peace
of mind. And although that peace of mind comes at a cost, it
doesn’t have to be too much of a cost if you shop around for
your insurance. Whether it's homeowner's , automobile, health
or life insurance, going over your coverage, discounts and
rates annually can results in big savings. Not to mention that it
can ensure you have the right coverage for your individual
needs. Doing nothing isn’t an option unless you want to miss
out on potentially big savings.
INSURANCE: 5 important Insurance Policies Everyone Should know INSURANCE: 5 important Insurance Policies Everyone Should know Reviewed by sunday on August 18, 2017 Rating: 5

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