Taking out insurance can be a tricky business. Some of us have lots of different policies and others will just have the bare minimum. However, everyone faces the same problems when it comes time to renew the policy and that is knowing who will be the best company to go with. It can be quite tricky and time consuming but it is worth considering different things so that you get the best policy for you.
- What do you need from your policy? – the first thing to consider is all the basics that you need form your policy. For example, if it is motor insurance you will have to choose cover that fits in with the law and if it is house insurance you will need to get cover that fits in with your mortgage companies’ requirements, if you have one. This means that there are specific needs you will have to get covered. You may also have needs of your own as well, which go beyond the basic cover.
- What extras do you want? – Insurance can offer all sorts of things and you will find that there are different types of cover but also options within those so you will be able to tailor cover to your needs and wants. This can be helpful as it means that you will not have to pay for things that you do not want, but it can make things complicated. It can sometimes be hard to understand what the extras means or whether you might need them or not. Assessing the risk can be tricky. One way to get around this is to ask the insurance company what the rough cost of that specific thing might be if you do not have insurance cover and work out whether it is something that you could afford. For example, if you can have legal representation then find out how much that would cost if you had to pay for it and then decide if you think you could afford that if you had to have it. Also, though, you need to consider what the chances are that you would actually need it.
- Do you want to pay monthly or annually? – it is really important to work out if you want to pay monthly or annually as often it can make a significant difference to the cost of your insurance. It can very often be cheaper to pay annually in one lump sum that to split the costs monthly. By paying monthly you are often charged interest and have this added on, in the same way than you would if you borrowed money using a loan. This can be useful if you do not have the money to pay a big lump sum, but it can be annoying that you have to pay extra. There are some insurance companies that do not charge extra for this though and it could be wise to compare them and see whether you would be better off going with one of these companies.
- How much can you afford to pay? – it is very wise to also look into how much you can afford to pay for the insurance. We often just get what we think looks the best without thinking about how we will afford it. It is always wise to take a look at your bank statements and see whether it is something that you will be able to afford. If you previously had a policy and this is replacing it then think about how easy you found it to manage the previous one and if the cost has gone up, whether you will be able to manage that increase in premium.
- How to find the best option – once you know what you want you then have to find a suitable insurer to provide you with that. This can be tricky because there are so many different insurers that you can pick from. There are comparison websites for insurance which can be a help but they will not list all insurers, just a selective few so they may not include the ones that are the most suitable for you. You may find that an insurance broker will be able to help you too. They tend to provide a more personal service but it is unlikely that they will look at all insurers. However, they will make finding an insurer easier. You may also want to look at reviews of different insurance companies or find out about the experiences of people you know to see whether they can recommend any to you. It will take a while to do these investigations but if you can either save money or get better value for money from your insurance policy, then it will be worth the time and effort.