What to Know About Buying Insurance
Unless you’re really committed to living life free of the system, or possibly just love living life on the edge, at some point in your life you need to think about buying insurance.
Not everything is under our control. That’s where insurance comes in. Being prepared for those “just in case” situations can make the difference between persevering through tough times or collapsing into bankruptcy and losing everything you’ve ever had.
While there are lot of different types of insurance it’s most important to learn about home and auto policies, since they’re the most common:
Home insurance
The average home price in Canada is currently around $450,000. If you’re going to be on the hook for something that valuable, you don’t want to lose out if a natural disaster damages the home, or if there is another catastrophe. Buying insurance can prevent you having to come up with a large amount of capital if needed.
When it comes to choosing the coverage that’s right for you, you should keep several factors in mind:
First of all, know what coverage you need. Comprehensive coverage might be best for your peace of mind, but you can save money by getting basic coverage. However, basic coverage will only cover some perils. Keep in mind there are some optional risks you can purchase coverage for, and there are some things insurance just won’t cover. Do your research about your neighbourhood to know if you’ll need coverage for floods or earthquakes.
It’s important to know the reputation of your insurer. J.D. Power releases a yearly report broken down by region and based on several different factors of customer satisfaction so you can make an informed decision. The last thing you want in an emergency is a company with a history of being difficult to work with.
When it comes to how much coverage you need, it’s always better to be safe than sorry. Don’t skimp on how much coverage you buy – and then find yourself unable to cover the costs if it all burns down in a fire. Make sure your home insurance quote matches up with the value of both your home and the contents inside of it.
Auto insurance
Unlike every other form of insurance, buying insurance for your car is mandatory. Car insurance is different based on what province you live in, so pay attention to the requirements of your province as you search for the right coverage for you.
If you live in British Columbia, Saskatchewan, Quebec, or Manitoba, choosing auto insurance is pretty simple. In those provinces the insurance system is public, which means you’ve only got the one choice for insurance. In other provinces it’s a little more complex.
When choosing an auto insurance provider, check to see if there is a discount for getting coverage with the same company as your home insurance. Ask about discounts in general because the more you can save, the better off you may be.
If they don’t have a bundle discount or you aren’t looking for home insurance, shopping around and comparing quotes online is a good way to get when buying insurance. Once you have a few quotes in hand, take a closer look at the company itself. You don’t want to have an insurance company that won’t make your life easier if you have to make a claim. Take a look at J.D. Power’s ratings for auto insurance companies.
You may notice there’s more than just basic car insurance. Comprehensive, or all-perils coverage, may be offered by an insurer, but this will add extra dollars to your premiums. It’s up to you to ask what basic coverage includes with your potential insurer and make sure you’re covered for the perils you think you need most.
Home and auto policies aren’t the only two types of insurance out there, but the tips can help when looking for other types of insurance like travel or life insurance. When buying insurance, look at company ratings, and compare online to find the best deals that fit your needs.