How to Choose the Best Insurance (All Types)

As a smart, forward-thinking woman, it’s critical that you have the best insurance of all types that makes financial sense for you. This includes car, homeowners, health insurance, and, if applicable, renter’s insurance.

Having the right insurance in place is part of a good financial plan, and it protects you from catastrophic money situations.

The following are some of the main things women should know about insurance and choosing the best products for their needs.

Auto Insurance

You probably already have car insurance, but do you know what’s actually in your policy? Do you know how much uninsured and underinsured coverage you have?

It’s important to audit your auto insurance coverage annually.

This will help you not only see what gaps may exist but you might also comparison shop each year to make sure you’re still getting the best price for your coverage.

There are a few key things that you can do to reduce how much you pay on car insurance:

• Use multi-car discounts. Insurance providers often offer a bulk rate.
• Be a safe driver. The longer you can go without having any traffic violations or accidents, the more your car insurance costs will go down. Safe driver discounts can range anywhere from 10% to 23%.
• Again, each year or so, you should get quotes from multiple car insurance companies.
• Improve your credit rating because some companies do use this to determine your costs.

Homeowners Insurance

Homeowners insurance is required by nearly all mortgage companies. Borrowers are required to have insurance coverage for the full or fair value of their home.

Some of the things you can do to reduce your homeowners’ insurance costs include:

• Have a security system. When you have one, it can reduce your yearly premiums by at least 5% in many cases. You will probably have to show your insurance company proof that you have central monitoring.
• You can raise your deductible to lower your premiums, but before you do this, know that you’ll probably have to end up paying for small issues out-of-pocket.
• If you get your car insurance and homeowners insurance through the same company, you may be eligible for a discount.
• As is the case with your auto insurance, regularly go over your homeowners’ policy to ensure that you know what coverage you have and don’t have, and also comparison shop at the same time to make sure there’s not a better deal out there.

Renters Insurance

If you’re not a homeowner, but you’re a renter, you should still consider getting coverage in the form of renters insurance. Renters insurance can cover the cost to replace your belongings if there’s a natural disaster, theft, or accident.

Renters insurance can also cover you if someone is hurt on your property or their property is damaged while they’re at your home.

Some policies don’t cover floods or earthquakes, which is something to be aware of.

If you’re going to get renters insurance, then you, again, should try to bundle it with your other coverage such as your car insurance.

There are a lot of factors you can use when you’re comparison shopping.

For example, compare the limits, and know the differences in the type of coverage.

You might want a high deductible because you’ll have lower monthly premiums. If you do go with a high-deductible option, you should have at least that amount set aside in an emergency fund.

Health Insurance

Most people get their health insurance through their employer, but if your job doesn’t provide it or you’re self-employed, you’ll have to go through a public marketplace in many cases.

You can go to the federal marketplace to compare premiums, or you can use your state’s marketplace if there is one.

There are a lot of types of plans, including HMOs, PPOs, and POS plans. 

Give yourself a crash course on what those types of plans mean so you have a good basis for comparing your options.

You’ll need to compare what your out-of-pocket costs are going to be, and the summary of benefits for a plan should outline that information for you.

You might, for example, go with a plan that has higher out-of-pocket costs but lower monthly premiums if you don’t go to the doctor much and you’re in pretty good health.

If you regularly see your primary doctor or a specialist, or you’re frequently receiving emergency care, you might want a plan that has a higher premium but lower out-of-pocket costs.

If you’re planning to have a baby, have children, or you’re currently pregnant, you will probably want a more expensive plan with lower out-of-pocket costs, and the same is true if you have a chronic health condition.

Life Insurance

Life insurance is becoming an increasingly popular type of coverage, including among younger people.

There are two issues to think about if you’re debating life insurance. First, you want to think about replacing your income if you have a family that depends on you and something happens to you. You also want to consider how your loved ones would repay your debts if you were to die.

Life insurance isn’t always expensive, and it’s increasingly common to be able to skip the medical exam before you’re approved for a policy.

Disability Insurance

Finally, you should consider disability insurance which is often overlooked and is so important. If you work and earn an income, disability insurance is protecting that.

If you’re injured or get sick and can’t work, disability insurance is designed to replace a portion of your income.

You pay a premium, usually monthly, just like you do with other types of insurance.

Make sure you read the fine print before you buy a disability insurance policy because it will have a specific definition of what a covered disability is, and it will also show you how much you’ll receive in benefits. Usually, the benefit amount is a percentage of your income. It’ll also tell you how long your benefits will last. The folks at Breeze offer personalized disability insurance plans, so be sure to check them out if you’re not already covered.

Going over your insurance coverage, identifying gaps, and comparison shopping is an integral part of any good financial plan for savvy women. It protects you, provides you peace of mind, and also potentially protects your loved ones.

Photo by Adrianna Calvo from Pexels

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