Understanding how much insurance to have can be challenging. Let’s try to simplify things so that it’s easier to understand and even easier to buy. The ideal outcome is finding coverage that’s just right.
Insurance is all about protecting your assets. Yes it covers car damage and house damage, but at the end of the day, insurance is to help protect you from a large financial loss – one that could be catastrophic to your personal finances. So, insurance coverage isn’t just about what you own, it’s about covering what other people own too. Take auto insurance for example. Not only do you want to make sure you cover your auto’s value, but you need to make sure you have enough insurance for someone you may hit. Indiana requires a minimum of $10,000 insurance for other people’s property, but what if you hit a brand new BMW and it’s a total loss? If you only have the minimum insurance, you have to pay the difference. Do you have $40,000 or more to pay out of pocket? So that’s where insurance comes in.
Homeowner’s insurance is a bit more straightforward, but just as easy to underestimate. For the most part, you want to cover the replacement cost of your home and your home’s contents. Umbrella policies are available to cover accidents and injuries that may occur on your property. One thing with homeowner’s insurance is to make sure all of your possessions are covered. Many policies have limits on things like jewelry, computers, and electronics. Be sure to describe these items in detail when shopping for insurance. Your Provident agent will be sure to recommend the best coverage for your possessions.
In the end, insurance serves a purpose. It is designed to save you from large financial losses. If you focus your insurance dollars on protecting you from the biggest possible threats, then you can save money in the long run. If you’re looking for ways to save, consider a higher deductible. That way you can have the necessary protection, without paying as much in premiums…but if you do have a loss you will pay a little more out of pocket. Say, $1000 instead of $500. But that $500 difference is minimal compared to the thousands you’d pay if you’re underinsured.
To learn more about ways to save on your insurance, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.
