Keeping your insurance premium low can save you hundreds each year. Cutting costs is a top priority in today’s economy, and comparing multiple insurance quotes is the best way to reduce your insurance costs. You can always call a local insurance company and request a quote over the phone or in-person, but the best insurance quotes are found online. Here are the best ways to get the policy you need at a price you can afford.
Decide How Much Insurance You Need
Before beginning your online search for insurance, decide how much coverage you need. Insurance premiums are based on the amount of coverage. For example, if you’re purchasing a life insurance policy, the monthly premium on a $250,000 policy will be far less than a $50,000 policy. If you want to keep your insurance costs as low as possible, only buy what you need.
Assessing your insurance needs is tricky. The coverage you need depends on several variables, such as whether you’re single, married, the head of a household or a parent. There is no equation to determine exact coverage needs when buying any type of insurance. But as a rule, you need enough coverage to compensate for any loss — whether it’s loss of income or personal property. For example, if buying renter’s insurance, purchase enough coverage to replace your belongings and cover any expenses with finding a new home. And if buying life insurance, obtain enough coverage to pay your final expenses and debts, plus provide your family with financial support for the next five to 10 years (if applicable).
Determine How Much You Want to Spend Out-of-Pocket
Deductibles are common when buying renter’s insurance, homeowner’s insurance, health insurance and auto insurance. When buying a policy online, you can choose your deductible. The less you pay out-of-pocket, the higher your insurance costs. Out-of-pocket expenses also include co-pays for doctor visits and prescription medications. In the case of health insurance, you can select an online policy with no co-pays or a policy with a high co-pay. It all depends on how much you can afford to spend on a monthly basis. If you visit the doctor frequently, opting for a low co-pay and a higher premium might make good financial sense. But if you never visit the doctor, the best online quote might be a policy with a higher co-pay and an inexpensive premium.
Shop Through an Insurance Broker
You can visit individual insurance company websites and obtain quotes directly from agents, but this does not guarantee the best insurance quote. Premium costs can vary by insurance company. Use an online insurance broker to get quotes from multiple companies. After you complete an online insurance application, the broker immediately compiles a list of agents that service your area. Compare the different features and benefits, and then select the insurance company that offers what you need at a reasonable price