Buying Insurance Online

by OnlineInsurance Staff on October 13, 2010

Many people ask the question, “What insurance company should I use?” We had a friend who always had a quick answer for that one. He would tell people to use the same company he used. Of course, he was an insurance agent, so he had a bit of a vested interest. These days, when you can get online insurance quotes, it can be tempting to always go with the company with the lowest premium.

After all, we all want a better deal, right? That may be true, but when it comes to insurance, a lower price does not always equate to a better deal. There are simply too many other factors at play. We’re not saying you shouldn’t use the Internet as a tool for finding the best deals, or even for buying your insurance. What we are saying is that you need to know what you’re looking for in insurance so that you can make a quality decision which leaves you adequately covered.

While it’s beyond the scope of this article to lay out all of the different things you need to consider about insurance, here are some key things to be aware of before you start looking at online insurance quotes:

  • When buying life insurance, be aware that there is a world of difference between whole life and term life insurance. We’re not picking sides here, because different life insurance fits different situations, but you should be fully aware of how long the coverage will last before you pay the first premium.
  • When buying auto insurance, you need to be aware of what is and is not covered. Most people who buy PLPD know that the only thing covered is liability, but you’d be surprised how many people buy what they think is full coverage only to find out too late that their coverage wasn’t full at all.
  • When buying homeowner’s insurance, make sure you know what’s covered. Wind damage usually is. Flood damage usually isn’t. Are you protected against theft? How about for liability? Different policies offer different coverage. Make sure you know what you’re getting.
  • Be aware of your insurance company’s ratings. Various rating agencies rate insurance companies based on their ability to pay claims and financial strength. If no rating is listed, do a little homework. Be careful about taking out insurance (especially life insurance) with a company with a rating lower than “A.”

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