Lesson 8: How To Be A Savvy Insurance Buyer
The following suggestions will help you become a more savvy insurance buyer. This lesson outlines things that you need to do. It discusses the relationship that should exist between you and your agent. It notes some things you can do to make the claims process go more smoothly. Finally, it discusses some insurance not to buy.
Things You Need To Do
1. Thoughtfully review the section of this course which pertains to the kind of insurance you are preparing to buy. Be familiar with the general concepts and terminology which applies to the insurance you are seeking.
2. When your insurance policy is delivered READ IT. At least make sure, for instance, that all of your autos are listed. If the policy has beneficiaries, confirm that all the names are spelled correctly and relationships to you are correct. Confirm that coverage limits, face values, are those you discussed with the agent. If you chose options or "riders", make sure they are with the policy. Remember, the people who process insurance policies ae human too.
3. If you are facing a major life event: marriage, birth of a child, divorce, a new business venture, etc. consider the implications for your personal insurance. The time to discuss such events with your agent is before, not a year after, they happen.
4. Remember that insurance is a major purchase. Shop around and compare policy features, appropriateness for your needs, company ratings and price. Approach the purchase of insurance in the same way you would the purchase of any other significant cost long term purchase involving a contract full of legalese. In other words, don't shop by price alone. For more on the wrong way to buy insurance see Hungelmann, pp. 191-94.
