Why You are Paying Too Much for Insurance.

by M. Cates

We have all filled out applications for insurance. All 50 US states require proof of financial responsibility to drive a car, and that is usually required in the form of auto liability insurance. Most mortgage companies require homeowners insurance as well. In addition, to protect ourselves many of us carry health and life insurance. Long term care insurance is another insurance product that has become more popular in recent years. Most of us visit with an insurance agent to purchase our policies, and we are all for that! An insurance agent can help you understand your new insurance policy and choose a policy that will work out the best for you! However insurance agents are motivated by commissions, and may be inclined to steer you towards higher priced insurance policies. So, in fact, we urge you to compare policies from multiple companies. Car insurance companies consider your driving history, age, location, and the normal use of your vehicle. Similarly, life and health insurance companies look at your age, location, health history, and family history in order to judge your rates. Homeowner's insurance companies consider the value and condition of your home, and of course, where it is located. Almost all insurance companies take your credit history into account these days! The thing is, even though insurance companies use similar criteria for assessing your risk, and your rates, they value those points differently. Many health insurancce companies will assign a higher risk class and rate to an individual with high blood pressure. However, some companies will consider assigning a standard rate if an applicant has been following the doctor's health plan, and can demonstrate could control of the disease. Many top rated car insurance will avoid covering a young driver, but a few top rated companies will take on the risk. Since most insurance company applications contain many questions to assess risk, it would take a long time to apply to several companies. I would even take hours out of a day just to call around to different insurance agents to find out what plans and prices are available. However, the internet allows us to compare insurance by filling out one online form which will return multiple insurance quotes and plans. If you are looking for an online insurance quote form, make sure the company has a stated privacy policy and operates on a secure server. It is also a big plus if they participate in the Better Business Bureau online program. Reputable companies will post these facts right out in the open because they want you to know they are reputable. Most of the forms take about three minutes to fill out, and they cut right to the point with the questions that major insurance companies use to assign risk. You can compare insurance quotes, plans, and options very quickly. You will also be able to select a qualified insurance agent in your area if you choose.

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