Insurance
by Ellise Walsh

Insurance may not be one of the most exciting or glamorous subject around, but it can be very important to both your financial well-being and your peace of mind. There are insurance products available for virtually any need, from the typical health insurance, life insurance and car insurance to the more esoteric things like insurance for antiques and collectibles and even health insurance for your pets.

Insurance rates are affected by a wide number of factors, such as your driving record when it comes to automobile insurance and your current health when it comes to health or life insurance. Each type of insurance has their own particular risk factors, and their own special ways of determining the rate you pay. Each insurance company will give more or less weight to each of these factors, therefore two different companies may quote you wildly different rates for the same insurance.

That is why it is so important to shop around when seeking any type of insurance. Always get several quotes from several different companies, making sure to use the same coverage levels so you are comparing apples to apples. You may also want to look at accepting a higher deductible in exchange for lower rates. Trade-offs such as this can often make sense, especially if you have some cash saved up for emergencies. The lower premiums can often more than pay for the risk you accept by having a higher deductible.

At a minimum, every person should have health insurance, car insurance (if you drive a car, of course), and homeowners or renters insurance. It is important that your car insurance and homeowners insurance provide adequate levels of coverage for any situations you may encounter. The minimum coverage mandated by your state may not be adequate, for instance, to cover the cost to repair an expensive car in the event of an accident.

It is a good idea to review your insurance coverage at least once a year. If events in your life change, such as a marriage or divorce, having children, moving to a new city, etc., review your insurance coverage at that time as well. Life events can have a significant impact on the insurance coverage you need.

If you rent a home or apartment, it is important to have insurance coverage that would be adequate to replace your possessions in the event of a fire or other destructive event. Many renters neglect this important type of insurance, but it is always a good idea to be prepared for a disaster through the use of renter’s insurance.

If you have items in your home or apartment that are particularly valuable, be sure to either include them on your policy or insure them separately. Many homeowner’s policies do not cover things like antiques and collectibles. If you are unsure, ask your agent and purchase additional insurance if necessary.

Finally, if there are any specific risks inherent to the part of the country where you live, you may need to purchase additional insurance to cover those risks. For instance, you may need to purchase earthquake insurance if you live in California or flood insurance if you live in or near a flood plain. Be sure to check with your insurance agent to make sure you have the coverage you need.

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