- Your process for selecting insurance should include a careful examination of the companies that might handle your policies. Check with your state insurance department before buying a policy to find out if the companies you're considering are licensed in your state. That department also will have information on whether a company has had many policyholder complaints. The Insurance Information Institute also recommends getting at least three price quotes from insurance companies because policy prices can vary widely.
- Consider more than just the regular monthly payments or premiums required when calculating insurance costs. Any deductibles will need to be paid as well. Those are the payments you're required to make before additional expenses covered by the policy are paid. You likely will be responsible for even more costs when it comes to health insurance, since policyholders typically pay some of the costs for hospital stays and prescriptions.
- Search financial websites such as Bankrate.com to find out about the types of insurance that are available before selecting a policy. This will help you avoid paying more in premiums than necessary. For example, there are several types of life insurance. Whole life insurance policies provide coverage for the policyholder's entire life as long as the premium payments are made. You may not want to pay such premiums throughout your lifetime if you have accumulated a substantial financial portfolio and don't have dependents who would need to be supported with payments from the policy in the event of your death.
