Trying to shop for an insurance policy is a lot like drinking from a fire hose. There are a lot of insurance companies out there, and they all claim to have the best policy for your needs, whether you’re looking for auto insurance, renters insurance and even health insurance. Of course, it goes without saying that the coverages that protect you the most will also cost the most, which begs the question of how much coverage you actually need.

Unfortunately, there’s no one right answer to the question “Which insurance policy is best for me?” However, there are some questions you can ask that will help you determine which of the many insurance policies available will be the best one for you.

Does the Insurance Policy Cover Your Needs?

This is the first question anybody buying insurance needs to ask. The whole point of an insurance policy is to help get you back on your feet if something bad happens. If you have too little coverage, you’ll have to make up the difference between what your policy pays and what you need from your savings or worse, your credit cards.

The best way to answer this question is to realistically think about how much money you’d need if an emergency occurred. If you’re driving a sports car, for instance, you’ll want to make sure it has a good policy so you won’t be out tens of thousands of dollars if you have an accident. On the other hand, if you’re driving an old beaten-up sedan, you might just want to get the minimum coverage since you won’t be getting much for the car if it gets totaled in an accident.

You’ll also want to think about the size of the deductible you’ll want to pay before your insurance kicks in. A larger deductible usually means a cheaper insurance policy, but you’ll need to make sure that you have enough money in your emergency fund to pay the deductible, as well as make sure that you won’t have to use the policy too often. 

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What is the Price of the Policy?

Once you know how much coverage you need, you’ll need to think about how much that coverage will cost. If you’ve never bought insurance before, you may want to visit some of the large insurance companies’ websites and see if they have an online insurance calculator you can use to get a rough estimate of how much you’re going pay, then use the estimates you’ve collected to start shopping around and see if you can find a better deal.

Does the Insurance Company Have a Good Reputation?

A good policy at a great price means nothing if an insurance company won’t help you when you need it. While many insurance companies and insurance agents are happy to provide coverage when called on, there are some insurance companies with a reputation for being difficult, if not impossible, to work with.

Once you see a company you like, find out how reputable they are. Your first step should be to see how long they have been in business, followed shortly by finding out their claim settlement ratio—how many claims they’ve had in a certain time period versus how many claims they’ve settled, or paid out. Keep in mind that different types of insurance will have different claim ratios. 

While you’re doing your research, don’t forget to ask your friends and family about their experiences with the insurance company you’re considering.

How Convenient is the Company?

Being able to easily contact an insurance company isn’t quite as important as knowing whether it will pay out its claims, but it is something to keep in mind. Find out how they accept bill payments, how easily you can speak with someone if you have questions about your policy and perhaps most importantly how easily you can file a claim if you need to.

What are the Discounts?

Finally, find out what discounts each insurance company offers. One of the most common ways to get a discount involves purchasing multiple policies, however, you can also get potential discounts from anything ranging from the age of your car (for auto insurance) to a discount for paying your entire insurance premium upfront.

Get Discounts on Your Insurance at First Alliance Credit Union

There’s no one right insurance policy for everyone. However, if you know the right questions to ask, you’ll be able to find an insurance policy that gives you the coverage you need at a price that won’t strain your wallet.

If you’re looking for a good insurance policy, become a member of First Alliance Credit Union and take advantage of our partnership with insurance companies like Liberty Mutual and TruStage to get policies on everything from auto insurance to life to AD&D coverage.

Become a First Alliance member today!