One of the most important and common of all insurance rules of thumb is, “You get what you pay for.” This rule has been in existence for a long time, but the recent financial downturn has made it even more important. This applies whether you are shopping around for a new policy or trying to sell one. In order to help you make the right decision, here is the rule of thumb.
The umbrella insurance rule of thumb goes like this: The higher your deductible is, the lower your premium will be. Therefore, if your company charges a high deductible, you may want to consider raising your deductible. Conversely, if you can pay a higher premium with less out-of-pocket expense, a higher deductible may not be necessary. When deciding between the two, consider how much you can spend each month to pay the higher deductible, and also how much out-of-pocket expense you expect to incur before the policy takes effect.
Another umbrella insurance rule of thumb is that the premium you pay for your policy should cover what you would need to pay for the average person, in order to be considered financially responsible. While it may be tempting to add on some extra expenses for your kids, you should remember that they are rarely involved in most situations, so it is not usually worth it.
Finally, the umbrella insurance rule of thumb is that you should never have too much coverage in your policy. Some policies are designed to pay the bills if your business closes or suffers a catastrophic event, such as natural calamities or a terrorist attack. If your company provides you with the same type of benefits, then it is likely that your coverage will be adequate to meet those expenses.
A final umbrella insurance rule of thumb is to avoid policies that are too expensive. You can save money by shopping around, but if you end up getting a policy at too high a premium, it could be a waste of your time and money.
Once you have determined which umbrella insurance rule of thumb to follow, you can start comparing quotes from different companies. Many companies will allow you to enter your income and health information online, so you can see which umbrella coverage is right for your needs. As you compare quotes, keep in mind the umbrella insurance rule of thumb.
Also, don’t hesitate to ask about discounts that may apply to your existing insurance policy. Some companies offer multiple types of coverage at a lower cost than other companies, so you may be able to receive a significant discount from one company when buying your umbrella insurance policy from another. Keep these factors in mind as you compare quotes. When buying an umbrella insurance policy, keep in mind that there are certain aspects of your home that you cannot insure, such as your garage.
When shopping around for an umbrella insurance policy, remember to keep the above mentioned rules in mind. Doing so will help you make the right choice for your needs and budget.
The next umbrella insurance rule of thumb is to make sure that you are not paying too much for your umbrella insurance. If you are looking at an insurance quote, make sure that you do not go over your coverage amounts. There are times when you may need to carry a higher deductible on your umbrella insurance policy, but you don’t want to pay too much.
When shopping around, you should also ask about whether the umbrella insurance you have is a required part of your company’s policies. Some insurance providers may require you to carry an umbrella insurance policy, but you may want to look elsewhere for other types of protection.
It is important to keep in mind that insurance coverage is not just for your vehicle or your home. In some states, it is required to carry coverage for personal items such as jewelry, electronics, and even clothing. If you are in an accident, these items may be covered by your insurance policy.
Remember, you can easily save money when shopping for your insurance by carrying multiple policies. Always check with your insurance company about which umbrella insurance coverage will work best for your unique situation.