What to cover
Before choosing the type of insurance, whether it is for your car, house, health or business, it is necessary to document yourself on as many insurance companies as possible. If you want your assets to be protected in case of any unfortunate events or accidents, insurance can become useful or can even save your life. Insurance companies can sell life insurances or general insurances – that cover all the other non-life insurances(pet insurance, farm insurance, boat insurance, travel insurance, home insurance, dental insurance, health insurance, car insurance and so on); these can be excess lines or standard lines.
Almost all insurances are based on basic principles of policy and the purpose is to save you from possible financial issues that can lead to serious debts. A medical insurance is able to provide the expenses for the treatment of a serious illness, auto insurance will oblige the insurance company to pay for the damages to your car in case of an accident, business insurance can save you from bankruptcy or other financial ruin and so on. All these cases require different types of organization and state different clauses, for both the insurance company and the client. The premium – the amount charged – will vary according to the established risk of each case. This is called risk management which determines the possible worst case scenario that could be covered with a certain amount of money that you provide the insurance company with.
Research insurance companies
It is advisable to consult as many insurance companies as possible in order to make a good choice. The worst thing to do is rush in and be willing to pay any sum, thinking that it is in your best interest to ensure your health or valuable assets. Insurance companies are experts in selling and this is the job they do best, so don’t let yourself be easily impressed – they could easily take advantage of your need for security. After you sign the contract you cannot go back and it may prove to be a greater loss than not getting insurance at all.
Talk to insurance companies
The first step is to solely talk to insurance companies and analyze the clauses: how much they are willing to pay, in what circumstances, which are the exception cases, how much and how often you have to make a deposit. Then, to be absolutely sure, you can seek advice from a professional – a financial advisor or insurance agent/broker – who can recommend you certain insurance companies and can give you the history of each of them. Usually, trustworthy companies will have been on the market for a longer period of time. Avoid insurance companies that have just launched their business or that cannot vouch with practical proof that will cover your expenses. The records can show you the cases in which a certain insurance company refused to pay and why.
Your insurance profile – your exact needs and expectations – should be very clear and accurate. Mention all your necessities and future problems that you fear may not be able to cover alone. Inform yourself about the procedures that will follow after an accident or damages to your assets. In each case, ask for detailed actions that will need to be taken by both parties. Read carefully your contract before you sign it. Eventually that written statement will consist of your real insurance. Keep receipts, never pay cash and get all contact information from the insurance companies.