Thank you to Dave Ramsey’s Endorsed Local Providers program for sponsoring this post! 

Insurance.

We all know we need it but it feels so overwhelming. I mean there are a dozen and one different options out there for every different type of insurance. It is no wonder that so many of us go for so long without proper insurance.

Not only can switching insurance providers or even policies save you more money but it can also help keep you from a potential nightmare later on. In fact, if you read any books on personal finance, you will likely see that maintaining proper insurance is a “must do” for all financial plans.

But where do you begin? I mean, most of us have car and homeowner’s insurance because we know that we need it and if you have a loan on either one you are required to have insurance. However, are you underinsured?

When my hubs and I first bought our home, I was a grouchy six-month pregnant first-time mama to-be and I couldn’t have cared less about the insurance policy of our home. That potentially could have been one of the biggest financial disasters ever.

The company and agent we used was one that my hubs had his truck insured through from before we were married. We never paid attention to the policy until I started gathering quotes to determine if we could save money on our home insurance.

Once I started calling around, I discovered a huge problem, we were very underinsured. Our homeowner’s insurance did not cover enough to rebuild our home should a tornado or other natural disaster destroy it (our neighborhood was in fact hit by a tornado in 2008 so this is not out of the realm of possibilities). It also did not cover enough if say a pipe burst in our home and flooded it.

Potentially this could have been a huge nightmare had any of the above possibilities occurred. Even though I was not able to save us any money on our monthly bill by switching companies and updating our policy, I saved us the headache, stress and worry of a potentially disastrous financial failure.

Want to avoid this kind of issue? Here’s what you need to do:

Pay Attention

Pay attention to your policies whether they are for your homeowner’s insurance, car insurance, life insurance, renter’s insurance, or whatever other type of insurance, pay attention to the details of the policy. This will ensure that you are properly insured and that any potentially major catastrophes are covered.

Shop Around

I know, I know. No one likes to “shop around for insurance” because it usually entails a very long process of gathering phone numbers, calling a dozen people, taking several notes, comparing rates, and figuring out the “right” answer to saving you both time and money. However, there is an easier option and in fact, it will give a greater peace of mind, Dave Ramsey’s Endorsed Local Providers (ELP) program.

I have personally used Dave’s ELP program to make finding the “right” answer for our insurance needs several times, including updating our homeowner’s insurance policy, figuring out my life insurance policy (way less scary than I thought it would be), and our car insurance. It saved us both time and money.

Don’t Settle

One thing that we did wrong when purchasing our home was settling on using the agent my husband had already established a relationship with. I am not suggesting that this agent is a bad person or that they did something wrong, I’m merely stating that we should have compared rates and actually reviewed our policy before agreeing to it. Maybe we were just caught up in the excitement of buying our first house and the accompanying stress of purchasing a foreclosure that needed extensive remodeling to even become livable again. Who knows the reason behind our lack of attention, but whatever you do, do not settle on a policy you do not agree with. There is nothing wrong with reviewing and asking for changes to be made.

Do You Have the Right Insurance?

This is a super important question to ask yourself – do you have the right insurance? Just like how we did not have the right or enough insurance for our original homeowner’s insurance policy, you need to make sure you have the right insurance for your situation. For example, my paid-for Sequoia is still under a full coverage insurance policy. This is because even though we could get a liability insurance policy and save ourselves some money, the reality is that my car has retained its valued and we would lose out in the event of it being totaled under liability insurance.

Do you have life insurance? Even if you are a stay-at-home mom, you need life insurance. If you pass away due to a car wreck, how will your family pay for your funeral? Or, what if you develop cancer? Many insurance companies will either not insure you (depending on the stage of your cancer) or will charge you an insane amount of money to take out a life insurance policy after you receive a cancer diagnosis. Make sure you have enough life insurance to cover your funeral, debts that you will leave behind, and make sure there is enough left over to give to your children in the event of your death.

Don’t Get Overwhelmed

It can be overwhelming figuring out your different insurance needs and then figuring out who to call and what policies to pay for. However, do not get overwhelmed. Make a plan of the different insurances you will need in order of priority:

Life Insurance
Medical Insurance
Homeowner’s/Renter’s Insurance
Car Insurance

And continue the list from there. Once you have your list of “must have” insurance, find the insurance ELP in your area who can help you figure out your best policy and price for your specific insurance needs.

Insurance is one of the best things that you can do for yourself and for your family to protect them in the event of a catastrophe. As the wife of a man that works in the catastrophic claims industry, trust me, the last thing you want during a crisis is to find out you do not have enough or the right insurance.

What is your number one tip for making finding the right insurance provider easier?

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