How To Buy Insurance

12938499_mWhen it comes to buying any type of insurance, you basically have the same several routes you can take.

The use of the internet to get quotes from Philadelphia insurance companies has really revolutionized the way people go about buying insurance. It has changed the standard procedure to a much more streamlined, cheaper and cost effective method that gives you much cheaper rates at a fraction of the time.

Online Insurance

Insurance companies weren’t the first adopters of the internet, but quickly caught on once a bit of success was noticed with early comparison sites. Nowadays, comparison sites have evolved and developed into super useful sites that are able to get instant live quotes from a huge range of insurance companies directly.

By having so many quotes available at the click of a button, you’re able to see what each individual insurance policy offers.

Checking online comparison sites affords you the luxury of doing all your research in the comfort of your own home. A lot of people feel pressured into signing on the dotted line when they’re at an insurance company branch in front of a salesman. Looking at insurance policies online enables you to quickly check on information or another company’s quote quickly without feeling embarrassed.

Finding your insurance online however doesn’t give you the comfort of knowing an insurance professional will be guiding you through the whole procedure.

Some people like to just be told which policy to buy and not need to mess around with comparing prices or comparing features.

Insurance Brokers

Insurance brokers are basically professional insurance experts.

They pretty much provide the same service as a comparison site but with a more personal touch. They’re still able to give you quotes from multiple insurance companies, but less than that of an online website.

A lot of people don’t like going through insurance brokers because they take a fee that many believe is avoidable. They do however guide you through the process and get everything sorted on your behalf to give you as little to do as possible. If you have a bit of spare cash it could be worth going through an insurance broker as they would usually give you as cheap a price as if you do it online, with the added guidance.

Directly With Insurance Providers

This is still a popular method amongst the older generation, as they believe they will get a much more reliable and safer service if they deal with the insurance companies directly.

Whilst it might be a safer bet, it is also the most expensive choice. Many insurance companies offer discounts when bought online, because of the much reduced number of paper work and files to go through the system.

More people also need to be hired to give insurance advice and other services that are provided by a brick and mortar business. These all cost more money than an electronic system that enters data automatically upon form submission without any human interaction at all.

 

What Can I Insure?

8508172_mWith enough money to pay for the protection, you can insure pretty much anything.

Insurance companies can give bespoke quotes for you to insure individual and expensive items, and given the right price for them to still make money, the insurance companies will be happy to give you protection.

The more common types of insurance are:

Home Insurance

Depending on the policy you have, this could cover several or all aspects of your home.

The most comprehensive policies will cover the building that houses your home, and your personal belongings, as well as the personal belongings themselves. If you are a home owner it’s nearly always advisable to have home insurance, as it protects you from a large list of perils that can be upgraded further through riders and add ons.

Car and Auto Insurance

In Philadelphia, car and auto insurance is an absolute necessity both legally and functionally.

Legally, you will need to have the minimum amount of cover to protect you from liability on the road. Functionally, car insurance can protect you from a big financial impact if you get into an accident, and ordered to pay for the other parties’ property damage, or physical and mental issues associated with the accident.

These bills can build up to an extortionate amount, especially with medical bills rising year on year.

Life Insurance

This type of insurance protects your family and your dependents financially in the event that you pass away and are no longer there to provide your source of income.

Life insurance is most important for the primary bread winner in the family as they bring in the most income. Life insurance pays out in the event that you pass away within a set period of time for term life insurance, or whenever if you’ve opted for whole-of-life insurance. Upon your death, your beneficiaries will be entitled to a large tax free lump sum that would hopefully be enough to keep their finances afloat at least until they can get financially stable themselves without you.

During a death of someone close, the beneficiary could be going through an emotionally volatile period of life.

As this is happening, the last thing they’ll want to worry about is the money situation, or getting a job just to keep the finances in the green. Life insurance gives them this extra time to grieve, and with the comfort of knowing they won’t need to think about money until later.

Health Insurance

Just as life insurance pays out in the event of death, health insurance pays out in the event of an illness or a condition.

Health insurance is an important aspect of life in Philadelphia as there isn’t the luxury of government health care as seen by the English counterparts. Healthcare can be incredibly expensive, especially if you develop a condition that needs long term treatment.

Whilst most families will be able to withstand the financial consequences of this for a short period of time, when we’re talking about years on end, this could eat through your savings extremely quickly.

 

Why Buy Insurance?

Insurance is a method that the majority of people in the western world make use of to reduce the risk of something happening by transferring that risk to an insurance provider. These insurance companies in Philadelphia are able to calculate the odds of something happening, and set a premium figure that reflects this (with some profit on the side). Whilst it might sound like a bad trade, it’s actually a very good technique to cover yourself in case anything major happens.

Insurances are one of those necessary evils in life. You have to pay money to protect your money, in case something unexpected happens and takes all your money. You can buy insurance for pretty much anything in life, the more common ones being your car, your house or even your life (scary I know).

Insurance works like this:

You pay a monthly fee for protection from a certain list of things happening to the thing you’re covering, so for example, the item you’re covering could be your house, and the events that could happen could include things like burglary or fire.

Depending on how much you pay for your premiums, you might have more or less cover. For example, a budget insurance plan for a car could be to only payout to repair the other parties’ property and not yours, you may also have to pay a high premium and on top of that, there may be a low maximum amount you get to claim. With a more expensive policy, you might be able to get them to pay for your car’s reparation costs too, and the maximum amount you can claim may be a lot higher too.

In the event of something happening that is covered on the policy. The insurance company will assess things like liability, who’s fault it is, and if need be, they will then pay the amount needed to cover all your liability.

So Why Buy Insurance?

Whilst you get lower odds than 1 to 1 when buying insurance, you’re also protecting yourself from serious financial problems in the event that something happens and it’s not covered by the insurance company. Liability is a huge problem, and if you do something wrong on the road, or with your business, you could be liable to pay for all damages associated with your mistake.

The cost of these damages could be absolutely huge because we including everything from legal fees to medical bills etc. Insurance cover acts as a buffer between you and these problems. Whilst they do try to make money (like every other business), they do also have the financial stability and power to cover your losses from liability.

Whilst insurance is not necessary in all circumstances, it is usually a recommended investment to make if you have a bit of money to spare. Protection is always better than no protection.

Please note also that insurance only ever really kicks in after something has happened, and preventative measures are always preferable to recovery methods.