Pushy insurance agents are a cultural cliche, but those agents have a point. You should make sure you have enough coverage and that you're getting the best deal in town or on the Web.
How Much Do You Need? If you own a home and a car, you probably have the required auto and homeowners' insurance. But you should revisit your homeowners' policy each year to make sure the replacement cost covers rebuilding costs in today's market. For example, if you have a 1500-square foot home, and your replacement coverage is $150,000, you'd have to rebuild your house for $100 per square foot -- far lower than the going construction rates in metropolitan areas.
Keep liability coverage in mind, too. Most homeowners' insurance policies have liability coverage, which protects you if someone sues you, but the standard coverage is often too low. You can purchase an umbrella policy, which protects you from many types of claims. If a lawsuit against you is successful, the umbrella policy will cover the damages so your house and possessions are protected. Otherwise, you could be forced to sell your home.
If your car is old and worth less than $2,000, you may not need the collision and comprehensive coverage you bought when the car was new. Consider dropping it and raising your deductible to lower your premiums.
Comparison Shop on the Web If you think you're being charged too much, shop for policies on the Web. You might be able to cut your premiums substantially. ThirdAge partner YouDecide offers tools for comparing quotes on auto, homeowners, renters, term life and long-term care insurance. Other sites to check include InsWeb, Quicken.com Insurance and eHealthInsurance.com.
Ask a Good Neighbor Local insurance agents representing large companies are still a valuable resource. Besides telling you where you're exposed, they might point out coverage you don't need and other money-saving tips. And they often offer competitive rates -- not to mention top ratings from Standard & Poor's.
