4 Ways to Get the Most Out of Insurance

4 Ways to Get the Most Out of Insurance


Proper insurance protection is vital to protect yourself and your family against the hardships of life. In addition to financial protection, adequate insurance coverage also gives you peace of mind since you know that a financial crisis won’t compound stressful situations. But there are so many types of insurance coverage that you may have difficulty choosing and paying for the coverage you need. Here are 4 ways to get the most out of your insurance coverage.

1. Research the different types of insurance.

First, look up the insurance laws in your state. Some states have minimum insurance requirements, so make sure you’re meeting the legal minimums. Also, think about your lifestyle and the types of insurance you might need. If you live in an area that is prone to floods, you should consider flood insurance, though it’s not a necessity for everyone. If you own some expensive electronics, you may consider a policy that covers personal property in case of an accident. Insurance coverage should be personalized to your life and your needs.

2. Pay attention to coverage more than premiums.

While it may seem smart to save money on monthly premiums in the short term, these policies may not offer the best coverage, which can cost you a lot of money if something goes wrong. While there’s nothing wrong with comparing prices, make sure you’re looking at how much coverage that price gets you. A good rule of thumb is to look at the highest amount of money you may owe if you have to use your insurance. Could you cover that amount in a crisis without added financial stress? If the answer is “yes,” then you have adequate coverage. If the answer is “no,” then you may want to increase your coverage, even if it means a higher monthly premium.

3. Review your insurance coverage frequently.

It’s so easy to just put our insurance coverage on autopilot and never think about it again, but our lives are not static, so our insurance coverage shouldn’t be static, either. Whenever you have a major life change, you should reevaluate your insurance to make sure you have enough coverage. If you move (even within the same state), change jobs, get married, have a baby, remodel your home, or experience any other life change, your insurance needs could change dramatically. Even if you don’t have a major life change, it’s still a good idea to review your insurance coverage annually. Sometimes, reevaluating your insurance can save you money. You may find you don’t need as much coverage as you did before. If you’ve moved, your new area may have lower insurance rates, even if it’s within the same state.

4. Talk to an insurance agent.

All of this can be a little overwhelming, but an insurance agent can help you figure out what kind of coverage you need for your life and situation. An agent can also compare different plans to help you save money on premiums without sacrificing coverage. You might even find a company who caters to your specific lifestyle. For example, USAA can help military families find the best insurance coverage for their unique situations.

No matter what your situation is in life, these 4 steps can help you figure out the best insurance coverage to protect you and your family in a time of crisis, all without sacrificing too much in monthly premiums.