For financially savvy people, finding the best financial service requires a careful, stair-step process through which they secure the ideal service for their needs. The meticulousness assures that the money spent or invested is sure to yield positive results. This is an even more significant process when finding the best insurance, regardless of the type of insurance it is.
If you’re looking for the best insurance for your situation, here are five quick tips to help you out. For our purposes, let’s go with a very specific example: finding travel insurance.
Figure Out Your Needs from your Wants
It’s important to understand that there are factors you need and there are factors you simply prefer. Separate these into “must have” and “nice to have” categories. If there are grey areas in between, you can also add a middle “should have” category, from where you can take factors and move them into the aforementioned main categories when you finally decide on their importance. In our example:
NICE TO HAVE
|Accident insurance||Rental vehicle insurance||Discounts|
|Theft and loss insurance|
Align Your Needs to the Insurance Policy Specifics and Budget
Now that you know what you need and what you want, you can align your specifics to the insurance policy you want to look for. In your case, you need a policy that covers accident and theft or loss, while also providing optional rental vehicle insurance. Other insurance features are not a priority.
Take note of your insurance budget. Your budget will often change which factors end up in which categories. For instance, if your budget cannot afford rental vehicle insurance separate from your bundled travel insurance (because touring agencies usually have their own), then you really need to include it, so you move the rental vehicle insurance from “should have” to “must have.” Otherwise, it’s just “nice to have.”
Create Minimum Policy Profiles
Based on your needs, you require only accident and theft or loss insurance as a minimum policy profile based on a budget. If your budget can accommodate more features, then you set another policy profile that can take more of your budget for certain factors. So let’s say you have these two profiles:
- Policy profile A: accident, loss or theft on Budget A
- Policy profile B: accident, loss or theft plus rental on Budget B
Search for Insurance Companies Offering Policies that Match Your Profile
Your policy profiles use your arbitrary judgements since you can’t know how much these factors actually cost until you search for insurance companies. So the next step is to create a shortlist of insurance companies that offer policies that meet your minimums. You can also use comparison tools online.
Compare Insurance Policies
Finally – and most importantly – you then compare your shortlisted policies. Some might be cheaper than others and some might offer more factors you need for the same price, but whatever the case, you need to be meticulous and detail-oriented to find the best insurance for your situation.
These general tips or steps can be applied to other types of insurance, and it would be ideal if you had an online insurance comparison tool to minimize the manual labour.
Gilbert Bermudez writes for Compare Hero, Malaysia’s leading credit card comparison website. Loves fishing, swimming and a hobbyist.