ANSWERS: 1
  • Obtaining an insurance contract requires the same basic steps, regardless of the type of insurance policy you need. Get the policy you need by simply determining your individual requirements and what the insurance market has to offer. Life, health, auto and homeowners insurance all have coverage amounts, payment terms and usage requirements, which must balance with your own needs.

    What Type of Coverage

    Determine what type of coverage you need. Insurance policies offer many different types of coverage, regardless of the kind of insurance you are looking for. For car insurance coverage, know the type of policies you need, such as liability to cover damage you cause with your vehicle, collision to cover your own car in an accident and comprehensive auto theft. The same applies with other types of insurance. Consider health insurance by determining what type of coverage you need now and in the future, including prenatal care, coverage for alcohol and drug addition or coverage that also includes your family.

    How Much Coverage

    Determine how much coverage you need. Insurance policies have limits to the amount they will pay and also have deductibles, the amount you have to pay out of your own pocket. Limits are raised and lowered by paying for more coverage. Auto liability insurance is raised when higher limits are requested and a higher premium payment plan is issued by the insurance company.

    Find Prices

    Shop extensively for prices. Look for insurance policies directly from insurance companies and from insurance brokers, who sell policies for a number of insurance companies. Prices can vary a lot, so shop for prices among both insurance companies and brokers. Getting a number of price comparisons gives you a good idea of what you have to pay and how much coverage is available.

    Policy Features and Details

    Compare policy features and details. An in-depth comparison of the prices and features is very important. Details in price comparisons offer information about deductibles, terms for keeping the policy in good standing, length of coverage and amount of payments, as well as how and when the policy can be used. Features in some policies are better than others. For example, limitations on what hospitals can be used vary from one health insurer to another, something to consider before making a choice.

    Policy Application

    Submit an application to the insurance agent or broker after you have completed your analysis and feel comfortable about which policy you want. Follow all necessary steps in order to complete the process and be approved, such as submitting to a health examination if it is required for a life insurance policy.

    Understanding the Contract

    Read the fine print before signing any insurance contract. The insurance contract will have much more detailed information than the comparisons you did. Understand all of the details before entering into the contract. Ask as many questions as necessary to ensure you have a complete understanding about the insurance policy, your responsibilities and the responsibilities of the insurance company.

    Signing Contract and Obtaining Coverage

    Sign the contract when you are satisfied with the terms of the policy. After you sign the insurance contract, the insurance coverage will be in effect, unless otherwise stated in the contract.

    Source:

    Insure U: Consumer Resources and Guides

    Get Rich Slowly: 14 Tips for Purchasing Life Insurance

    Edmunds.com: 10 Steps to Buying Auto Insurance

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