How to Estimate the Amount of Coverage You Need on Your New Insurance Policy


If you are in need of a new insurance plan, you may not be sure what policy you should pick. You will find that each plan has different premiums and deductibles that you will be responsible for. A lot of these things will be dependent on the amount of coverage that you choose. Here’s how to estimate the amount of coverage you need on your new auto or home insurance plan.

Your Savings

You will need to meet your deductible before some major repairs are covered. If you have a substantial amount of money in savings, you might want to take the risk of choosing a plan with a higher deductible in order to pay lower monthly premiums. If you don’t have a lot of money to shell out unexpectedly, you might want to consider a plan with a lower deductible. It will cost more each month, but it may save you money in the long run if you need to use it due to a car accident or your home needing a major repair.

The Value of the Item You Are Insuring

If your home or car isn’t worth that much, then you probably don’t want to pay a lot for coverage. However, this will mean that your insurance won’t cover what you might want it to if you need to use it. For some items like cars that are very old or in terrible shape, you may be better off getting a policy without a lot of coverage as you will be replacing the item in the very near future.

How Much Work You’re Willing to Put Into Major Repairs

If there is some type of accident that damages your home or car, will you be willing to pay for these repairs yourself or replace some of your personal items? If not, then you might want to consider getting a car insurance policy that will cover things like comprehensive and collision for cars or a broad form home insurance policy that will cover both structural damage and your belongings inside. 

By having the right insurance policy, you will lower the amount of money that you have to pay out of pocket to your home or car fixed. You’ll have to do some research on different policies and different insurance companies, like Bear River Insurance, to find the policy that offers you the coverage you need. This way you keep from overpaying for coverage you will never use while also ensuring that that you’ll have the coverage you need with the time comes.

The Monthly Premium

You will find that monthly premiums will vary greatly. The more a plan covers the more the premium will usually be. Make sure that you don’t just choose a policy with the cheapest premium you can find. You need to pick a plan that has the amount of coverage that you need with a premium that you can afford every single month.

It’s imperative that you have adequate home and auto insurance. When it comes time for you to choose a new insurance plan, you need to make sure that you pick the right one. By utilizing the above tips, you can ensure that you are accurately able to estimate the amount of coverage that you need on your new auto or insurance plan.

Anita Ginsberg is a freelance writer from Denver, CO. She studied at Colorado State University, and now writes articles about health, business, family and finance. A mother of two, she enjoys traveling with her family whenever she isn’t writing. You can follow her on Twitter @anitaginsburg

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