Tips on saving money when shopping for insurance

Tips for choosing the right kind of insurance plan (509 words)
Whether you are taking life insurance or general insurance (non-life insurance) products like auto insurance, health insurance, homeowners insurance etc, there are some basic commonalities that a consumer should take into considering while choosing an insurance product. Here are tips on choosing the type of insurance for you:
1. Find out the benefits and coverage: You have to find out the coverage and benefits offered by a particular insurance product. Compare it against another insurance product and find out if the coverage is worth it. Do not compare orange against apples. In other words, compare an auto insurance product against another one. Also find out if a particular type of insurance gives enough coverage or if you need to take a specialized policy. For instance, a health insurance policy can offer cancer protection, but if it is not enough or if the benefits are less, you can take a specialized cancer cover
2. Compare insurance quotes online: Go to an insurance aggregator website or an independent website in which different insurance vendors are listed. On such a website, insurance companies tend to base their quotes competitively. Find out which insurance company is the best for you in terms of various parameters apart from just the price quotes. Read through the exclusions, inclusion and disclaimers to find out which is the better insurance company
3. Find out the premium: Find out the premium that you have to pay for the insurance. For instance, if you do not have a good record at driving, you may be asked to pay high premiums for auto insurance compared to the one who has a squeaky, clean record. Also when you take life insurance, a person who applies for term insurance pays low premium generally compared to the one who goes for whole life insurance
4. Claims procedure: Find out exactly how the claims procedure works. It is no use taking a fancy, hyped-up insurance policy when the claims procedure is strenuous. The insurance company that you go for should have an efficient redressal system to address your grievances as well.
5. Customer service: Nowadays, every insurance company strives to give better service. So, look for the one that is more transparent, more sensitive to people and the one who is more welcoming to people’s questions. Go for the insurance company that is very good at resolving queries, clarifying doubts and giving better options.
6. Free look out periods: Check if the insurance has a free-look out period wherein you can take the insurance and experience it for a month without paying premium, for a month or so. Secondly, find out how much money you can get if you surrender the policy.
7. Do not agree impulsively; When the insurance company calls you and tells you how well the insurance policy is for you, do not just say ‘yes’ outright. He is being trained to say all the good and rosy things. Tell him that you will look into it and get back to him. Do your research properly and then form a decision.