How to Find Low-Cost Insurance
- 1). Learn the law. Before purchasing a policy, know how much insurance you're legally required to have. For example, each state requires that drivers carry a minimum amount of liability coverage. If you're looking for bare bones, learn the law and ask insurance companies to write you a policy that provides the minimum coverage.
- 2). Call around. When searching for insurance, collect as many offers as possible before selecting a policy. To choose the best plan, you have to know what's out there. If possible, call the insurers directly rather than using a broker. Many brokers will charge fees for acting as a middleman.
- 3). Compare policies. Insurance companies seldom issue identical policies. Just as each company sets its own price for a policy based on its own formulas, each company has things it covers and things it doesn't. After you've collected a handful of offers, read them over and see what each provides. To prevent paying for unnecessary coverage, identify which policies best match your needs.
- 4). Negotiate. While insurance companies usually have a set price at which they issue policies, the terms can often be rewritten to provide for a customer's needs. After you have identified the kind of coverage you really want, ask companies to eliminate all the unwanted extras and quote you a price. After each company has given you an offer, take the cheapest price offered by an insurer, show it to the other companies and ask them to match or beat it.
- 5). Look for rebates or discounts. Many companies have rebates or discounts that they offer to customers but that they don't always publicize. For example, car insurance companies may offer discounts for good students, who they deem statistically less likely to be involved in a crash. Check with your local government as well, as some offer subsidies to purchase certain types of insurance.
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