Insurance coverage is not a cookie cutter situation. One size does not fit all. Your needs are as unique as you are, and are impacted by a multitude of factors.
These factors include things such as your lifestyle, budget, and risk. It’s not a straightforward answer, it’s tailored to your circumstances.
So what are factors that affect your coverage?
Understanding Risk:
Insurance is all about mitigating risks that you face. For example, risks can vary from personal lifestyle choices, property, or liability from previous accidents you might have had.
When your insurer assesses your risks, it helps ensure that you don’t overpay for coverage you might not need, or that you’re underinsured if a claim does happen.
Your Budget:
Insurance should be within your budget in order to get the right balance of coverage and affordability. There are cases where you might be able to bundle multiple policies, in order to get a discount. Regular reviews of your policies can give you opportunity to make adjustments as your financial situation evolves.
Over-Insurance:
Over-insurance is where you carry more coverage than you need. This can result in unnecessary premium expenses. Your insurance agent can help you identify areas where you might be over-insured.
Self-Insurance:
Self-insurance is an instance where you set aside funds to cover potential losses instead of paying insurance premiums. This can be a cost-effective alternative with low-risk scenarios. For example, if you decide to self-insure minor auto repairs instead of paying for collision insurance.
Overall, it is important to speak with your insurance agent about questions you have regarding your coverage. When working with an insurance professional, you can get the specific strategy for your situation.
For any questions about your policy or a quote, contact us today!
