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Getting Good, Solid Insurance Quotes Can Save Significant Money

Updated on April 26, 2013

Insurance Risk Assessment Concept

Insurance Risk Assessment Concept
Insurance Risk Assessment Concept | Source

Information about Life Insurance

There are two types of life insurance in general:

- Protection policy

- Investment policy

In the first case the insurance policy will cover only risks. These are unexpected events that may occur. In the second, it covers risks and helps save money. One major purpose of life insurance, is to take care of funeral expenses in the case of death, and to financially take care of living dependents.

Life Insurance for Someone with A Mortgage Loan

Some banks wont’ give a mortgage loan if a borrower's life is not insured. The insurance compensates the loss to the mortgage company, if a person cannot repay the loan due to illness, or death. The insured amount is calculated on the basis of bank debt in this case. However, the insurance will be in the bank’s name, and in case of insurance settlement, coverage would be transmitted to the bank, by the insurance company. A borrower or their families’ do not receive that compensation. That is why a person should get two policies, or get an investment policy, if they have a mortgage loan.

Inexpensive investment insurance may not be as promising as it seems at first glance. If you sign a contract with an insurance company for 10 years, and every month pay $100.00 ($12,000. for the whole period), after 10 years the insurance company will return only $12,072.00. In addition to 4% annually, the insurers promise investment income of 9-13%, but at the end of the term, 15% of taxation must be deducted from the accumulated funds. However, in case of an insured accident, even if the insured person paid only $1,200.00 for one year, the insurance company would still be required to return the full insured amount, which is $12,575.00.

Some companies also provide insurance protection in case of car accidents, additionally to the investment policy. But the amount is three times more than you need to pay for the contract. And such programs have insurance quotes not less than $2,000.00 per year.

Get Insurance Quotes for Savings

If you are anything like me, even the thought of getting insurance quotes, slightly turns your stomach, gives you a headache and is about as pleasant as a trip to the dentist. Everything in me wants to protest not to go there. However, on the logical, right brained side is the wisdom to push through all that because in the end, it could save a person thousands of dollars. Who doesn’t want to do that?

Practical Strategies to Get Insurance Quotes

Let’s dive into some practical strategies for getting good, solid insurance quotes.

  1. Mentally prepare yourself for this to be a project, one that could put literally thousands of dollars into your pocket if you get good insurance rates over the course of many years. Don’t expect it to simply be a 5 minute phone call with an insurance agent, and you’re done. Treat it as an investment to yourself and family. You have the most to gain by this project.
  2. Decide what area of insurance quotes you want to tackle first. Don’t attempt to hit all areas at one time, it will be too overwhelming. Systemically take one at a time. Will it be car insurance, health insurance, life insurance, home insurance, disability, dental, vision insurance, or some lesser known ones, like apartment/dwelling or pet insurance?
  3. Get out a notebook or use an excel spreadsheet, whatever you are most comfortable with, and dedicate a sheet for the type of insurance you are researching.
  4. First, determine your need for insurance coverage, and the level of risk you are willing to take. You may even want to do some reading about this topic, before deciding, to educate yourself more fully. You don’t want to over purchase what you don’t need, but you also want to have adequate coverage. Try using an insurance online calculator as a first pass to getting a good insurance quote.
  5. If you currently have this type of insurance, dig out your policy and put in your notebook the specifics, the premium you are paying, deductibles, what exactly is covered, what is not covered, and the level of coverage. If you don’t have insurance coverage, skip this step.
  6. When you are ready to get insurance quotes, it is critical that you compare apples to apples and that you deal with a reputable company. You don’t want a company that will be out of business, should you need to file a claim. You can do this part either online, by phone, or in person with an insurance agent. Write down your base information of coverage needs, and all the components of every quote you receive.
  7. Once you’ve decided on the best deal for your situation, move on to get another insurance quote to your next category. Keep doing this, until you have finished this project.

Information about Property or Home Owners Insurance

There are two different main categories of insurance offered by insurance companies:

In the first case, you insure the physical structure of the home or property for fire, accident, natural disaster, gas explosion and (optionally) everything that is in the house: reparation, furniture, contents, even expensive clothes, as well as third party liability. But in this case, you can’t insure repairs and furniture without wall insurance and the coverage is not applicable to any clothes outside the apartment or dwelling.

The other option is to separately insure the frame of the building, apartment or house, interior decoration and/or property, and third party liability (in case of burst pipe in your bathroom). But the insurance is valid only within the borders of your accommodation. This is convenient for those, who took a loan for an apartment, and insured it against the risks of fire, or gas explosions according to the requirements of bank, and now want to insure repairs, or third party liability.

The insurance amount is the actual (market) price of your apartment or home, or the possible cost of damage. The minimum insurance quotes are for $15,000.00. the higher the insured amount is, the higher are the insurance premium payments will be. 

This is calculated based upon the type of home, year of construction, and condition of apartment/house or property.

In case of fire it is 0.2-0.5% of the amount insured; disasters due to faulty water supply, sewer or heating systems 0.15-0.35%; natural disasters 0.15-0.35%; fallen aircrafts or their fragments and collision due to the moving objects 0.15-0.5%; wrongful acts of third parties (burglary, robbery, vandalism) 0.8-0.25%. The full package of risk protection gives you 0.4-2%. The insurance quotes are higher when you insure personal assets and contents.

Car Insurance Quotes

Before you get car insurance quotes, do all you can beforehand to reduce your rates. Getting a car alarm and parking off street may reduce rates. Do your best not to get any traffic violations. Do as much credit repair as you can, pay your bills on time, etc, a bad credit rating can lead to having to pay higher insurance rates across the board.

You may want to take a safe driving course. If you are a student, do your best to get good grades and make sure the insurance company is aware of this, ask for good student discounts.

Find out the Blue Book value of your car, before you get an insurance quote, you may find some types of insurance are simply not needed in relation to your vehicle’s value. You may be very surprised what the actual Blue Book value is.

Because the insurance industry changes quite a bit through the years, as well as your needs and circumstances, you should strongly consider going through your insurance inventory every 5 years or so, to make sure you are still getting the best possible rates, and that they are meeting your circumstances and requirements adequately.


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