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The key to getting though the buyer decision process for insurance protection without wasting unnecessary money is to do your own research. Never rely upon an insurance agent (who is really in many ways a salesperson designed to grab a commission) to make these decisions on your behalf. Otherwise, you could end up paying a lot more money for insurance than your personal spending plan can comfortably handle.
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Auto Insurance Tips
Virtually every part of the world requires registered automobiles to also carry valid insurance. This protects other passengers on the road in the event that you cause an accident. Also, it can replace your vehicle, pay your medical bills, cover a rental car, and cover any property damage depending upon your policy.
Most governmental bodies set minimum liability insurance amounts; these won't be flexible. However, you can save money by deciding how many "extras" you really need. You may not need a medical provision if you already have good health insurance. Also, getting a $250 deductible (this is the amount you pay out of pocket while waiting for the insurance company to determine who was at fault for the accident) may sound tempting, however, you might be better off obtaining a $500 to $1,000 deductible to save on your monthly payments. Hopefully, you will never need to make a major car insurance claim, but as always, it's better to be safe than unprotected. Also, many states in the U.S. can suspend your driving privileges for failure to carry valid auto insurance.
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Homeowner's and Renter's Insurance Tips
Most homeowners wouldn't dream of going without this insurance; this protects your assets and personal possessions in the event of fire, robbery, tornado, or other unavoidable acts of nature, except floods. However, a shocking number of renters do not carry insurance to cover their possessions in the event of tragic acts of man or nature. Also, both types of residential policies usually cover damages in the event someone gets hurt on your property.
As with any other insurance, you can save your out-of-pocket money by selecting a higher deductible; don't select one that you couldn't possibly come up with in the event of the unexpected. Also, adding renter's or homeowner's insurance to an existing auto insurance policy is likely to save you money and time; you have only one agency to deal with and one bill to pay.
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Life Insurance Tips
Though many employers offer basic life insurance, you likely need more than they offer. A general rule of thumb when deciding on life insurance is to get coverage that is at least two and a half times higher than your annual income. If you're a housewife, you still need life insurance, according to David Bach, author of "Smart Women Finish Rich." Think about how much it would cost for your spouse to quit his job or hire someone to take care of your family in the event of an untimely tragedy. To be safe, secure life insurance for at least two and a half times higher than your annual income. As always, you can save money on this by trying to keep everything with one insurance company.
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Health Insurance Tips
Your employer may offer health insurance, but a growing number of companies don't or what they offer is inadequate. Staying uninsured is a huge financial risk. It also compromises your ability to get most medical care especially for routine visits. Even those who are high-risk due to existing health problems can usually get a plan from their state's uninsured pool. Once you have health insurance, keep in mind that you can often still save money by selecting a slightly higher co-pay as well as choosing generic drugs over brand name pharmaceuticals.
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The buyer decision process for insurance will result in you spending money, but considering the potential effects of unexpected tragedies, this is time and cash well-invested. Keep in mind that you likely need all four types of insurance to fully protect yourself, your family, and your assets.
- Auto Insurance Remedy (5/25/10) http://www.autoinsuranceremedy.com/auto-insurance-state-by-state.php
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