We all need insurance. But finding the right insurance policy for one’s specific needs is a complex, stressful Endeavour. How much coverage should one get? Who do you purchase from? What should you know before buying a policy? So here are some important things you should find out from your insurance company or broker/agent before buying.
Understanding your own risk
Risk is the likelihood of something happening that might cause a financial loss. Understanding your own risk will help you pick the best insurance product for you.
It is important to do your own research and shop around to find an insurance company and policy that suits your needs. It’s imperative to know what you’re paying for when you buy an insurance product. You should be well informed.
It is advisable to get quotes to compare different policies but remember that price is not the only thing to consider. The insurance company you buy your policy from should not only offer good prices but also good service.
Reading the PDS
While choosing a policy you should read the product disclosure statement (PDS) carefully. A PDS is a document that insurance companies must give you by law, which describes in clear terms the main features and main terms and conditions of your policy.
Compare prices and services
Make sure you consider your own requirements and which insurance companies offer policies most appropriate to your risk. You should have a good understanding of what you will be covered for and what you will not be covered for before signing up for any insurance policy. One of the most important parts of the insurance process which you must be sure that you understand and answer correctly, is the information you provide when seeking a quote.
Since prices for the same coverage can vary to a great extent from one insurance company to another, it is advisable to get more than three quotes from at least three different sources.
The insurer from which you will buy your policy should not only offer good prices, but also excellent service. Sometimes, better service can cost a bit more.
Ask your friends and family about the insurance companies who have given good service and good prices. Try to get information about the companies against whom complaints have been made.