It is hard not to view insurance payments as money down the drain, so many of us use price quotes as the deciding factor when we select car, home or household insurance. No one wants to be \”taken\” on their insurance premiums.
That is a choice many consumers come to regret when the time comes to file a claim. This is when we find out what kind of service our premiums have been paying for, and, we shouldn\’t be surprised to find that we get what we pay for.
Therefore, a variety of companies can be found that offer excellent service and comparable pricing. In order to differentiate between them, you will need to do your homework. Research individual companies to determine their rates and benefits.
Researching insurance online is the easiest way to start. You\’ll find resources to educate yourself about common insurance terms and practices. And, you can gather enough information, most of the time including quotes, cover information and company history, to know if you want to give the company a call for information on specific options. This way, you can avoid high-pressure sales tactics that might cause you to make a decision prematurely.
When you start negotiating with the insurance company, you\’ll hear novel terms and listen to consultants who try to pull fast ones on you. You need to know what will happen when you submit a claim, and what the terms of your policy include. Ask any questions that you need to ask to clarify the policy. Any company that wants your business should be willing and able to explain its policy to your satisfaction.
It is important to understand how insurance companies determine properties. It comes down to your risk level. If your risk levelis high so will be your premium and vice versa.
Several factors influence your risk profile, including, age, gender, place of residence, the value of the item(s) to be insured, your history of claims, the type and amount of cover you want to buy and the risk the item(s) being insured are exposed to. These factors can influence the various types of insurance in different ways, but some have the same effect on each insurance type.
If they exceed the insurance company\’s requirements, will lower home, household and car insurance premiums,if your place of residence is in a high crime area, your home, household and car insurance premiums will reflect the increased risk of possible theft, burglary or hijacking.Increased security measures.
If you can afford it, consider increasing your excess amounts. Excess refers to the amount you are responsible to pay when you file a claim. All car, home and household policies have minimum excess amounts, but you can raise yours in exchange for lower premiums.
It takes a while to establish your driving record and history with an insurance company. If you are just starting out with insurance you will find that you will not be eligible for discounts. Some insurance companies do offer breaks and rewards to new drivers, I have seen some companies offer incentives to those who have good grades and show signs of responsibility.
Tom Martens is the syndication coordinator Insurance-south-africa.co.za. South Arica\’s leading Insurance information portal
