1. Coverage Limits
One of the biggest things you want to look at when it comes to your home or auto insurance is your coverage limits. Almost every insurance policy has a coverage cap on it. This cap outlines how much the insurance policy will pay out if you file a claim. For example, maybe you have contents insurance that caps out at $10,000. So, if you have $12,000 worth of items and only $10,000 in coverage, you’ll have to cover $2,000 out of your own pocket if you have to file a claim to replace your items.
Coverage limits also apply to your auto insurance. For example, you may only be able to file so many claims in a calendar year. If you file more than your allotted claim amount, the insurance company can deny the claim. If they do, you’ll have to pay for any additional needs on your own until the calendar year resets. This can also drive your monthly premium up as you file more claims or make changes to your insurance policy. The insurer can even drop you if you continually exceed your coverage limits.
Every home and auto insurance company has different deductibles on their coverage. The deductible you pick will be the amount you have to pay if you file a claim before your insurance coverage will kick in and pay the rest. Generally speaking, the higher your deductible is, the lower your monthly premium will be. However, you should have this money tucked away in an account if you never need to make a claim, so you’re not left scrambling because you usually only have a set period to pay the deductible and file a claim after something happens.
For example, say you set your deductible at $1,000, and you get in a car accident. Once you file a claim, you’ll have to pay $1,000 before your insurance company pays to fix your car. There are several different deductible tiers available, and the most popular ones include $250, $500, and $1,000. You can change this deductible as you see fit, and this will impact your monthly premium costs.
Just like anything else in your life, your budget will factor into your insurance policy. Depending on your location, your home or car’s condition, any safety features or upgrades you put into it, and your coverage amounts, it can get very expensive very quickly. The more coverage you want when you pick out your insurance, the higher the costs will start to climb. If you live in an area that makes your chances of filing a claim higher, the insurance company will compensate for this by charging you more.
The same goes for your auto insurance. New drivers will have higher costs associated with insuring their vehicles because they’re at a much higher risk of being involved in an accident. One of the first things you have to do is decide exactly how much coverage you need. This will give you a good idea of the different coverage levels to consider, and you can find one that fits into your budget while giving you all of the coverage you need to get good peace of mind. You should review your policy annually to see if you need more or less coverage for the cost you can afford.
4. Company Reputation
Surprisingly, when people think of home or auto insurance, they forget to look at the reputation of the insurer itself. The goal is to find a reputable insurance company that fits your coverage needs at a price point that is affordable. You don’t want to go for the first company you come across, and it’s a good idea to compare multiple well-known companies to get the best option for your home or auto insurance.
There are websites you can go to like the Better Business Bureau and get ratings for the various insurance companies. Pay attention to any complaints and see how they handle them. You should also do research and see how each company handles claims when people file them. You want a company that will respond promptly to you when you need them to, get the ball rolling, and get your claims filed quickly.
It’s essential that you know that many home and auto insurance policies don’t cover everything. There are exclusions that you have to consider, and some policies make you add riders to your core policy coverage to increase your coverage and costs. For example, some policies won’t cover flood damage in the main policy, so you’ll pay extra to get a flood insurance rider.
Some auto insurance policies also have exclusions. They may not cover medical bills for your passengers if you get into an accident unless you pay more for it. Or, the policy might require you to pay more if you add a younger driver to your policy. Make sure you double-check any exclusions your insurance company has before you decide on one over the other. This way, there are no nasty surprises when you go to make a claim.
Contact Nsure for an Auto or Home Insurance Policy Comparison
When it comes to home or auto insurance, it’s essential that you compare your companies before settling on one. Nsure allows you to compare quotes from the top 50 insurance companies in the United States, pick your company, and monitor it from the app. We invite you to try our platform and make an informed decision today.