Insurance is one of those things you hope you never need. But you must have it and pay for it, and you certainly don’t want to pay more than you have to in order to be fully covered. Of course, if you’re just getting started in the world of insurance, full coverage might seem mystifying. Insurance can be confusing, which is why it’s nice to speak to an insurance representative if you can to sort things out initially.
When planning for insurance coverage, you’ll likely discuss:
Auto Insurance – If you drive, even if it’s not your own car, you’ll need auto insurance. Insurance requirements vary by state so you’ll need to check with your own to see what coverage is the minimum requirement. If you drive frequently or live in an area that is known for traffic and accidents, you’ll likely want more than the minimum amount of coverage, but finding the right balance between coverage and price can be tricky. Understand that it is against the law to drive without insurance, and you can face serious fines and consequences if you’re caught behind the wheel without being insured.
Motorcycle Insurance – Auto insurance covers most noncommercial vehicles, but motorcycle insurance is designed specifically for motorcycles. It is considerably more dangerous to ride a motorcycle than it is to ride in an enclosed large car, especially in an urban area. You can expect insurance on a motorcycle to be high and the sportier your bike, the more expensive the insurance will be. This is often a surprise to those who buy a motorcycle to cut back on expenses. They pay less for the bike but find their insurance rates rising dramatically.
Renters Insurance - If you rent your home, your apartment complex or landlord does not insure the contents of the buildings. If there is a fire he’ll be covered for the actual building, but unless you’ve insured the contents of your individual apartment, you’ll be walking away from everything without any means of restoring it. Your landlord is not responsible for your belongings and when you signed the lease, you likely stated and signed a clause to this effect. Be sure you find solid renters insurance before you move in, and don’t underestimate the amount of coverage you’ll need to replace everything you own should you experience a total loss.
Homeowner’s Insurance – When you own a home, you must insure the property, the structures on the property and the contents of your home. This can be a very large policy, and the cost will be significant as well. Homeowner’s insurance can be found at more affordable rates, but before you buy based on premiums alone, research the responsiveness of the claims and customer service areas to ensure they follow through adequately on your needs should you need to file a claim.
Life Insurance – Insuring your life isn’t something most individuals like to think about, and your place of business may offer a basic life insurance policy. However, when you have dependents, that policy is likely not enough to meet the needs of those left behind, so consider a separate life insurance policy. A term policy is paid for monthly for a set term for a set amount. A whole life policy is more like a savings account that is also paid out when you pass.
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