While buying insurance can be a complicated and daunting task, coordinating your policies and understanding overlaps in coverage can be even more tiresome. As a result, some people buy little to no insurance because they believe that insurance is a swindle. Still, there are people who become fearful and over-insure themselves from a catastrophe that’ll likely never arrive. Finding the proper balance is a sensible approach to this section of your financial plan, but how do you go about coordinating insurance coverage?
coordinating insurance coverage
Auto insurance & homeowners insurance
Auto insurance is one of the most basic and practical types of insurance for anyone who relies heavily on their cars, especially people living in cities without convenient or reliable public transportation. As simple a thing as auto insurance is, the laws that mandate specific/minimum coverage limits for auto insurance will vary from state to state.Almost every family with children dreams of buying a home, because having a white picket fence, a large green lawn and a garage to park in is nice. However, this investment must be insured to the fullest amount because of the various problems that might happen: theft, fire, wind, or flood. It is, therefore, crucial to carry homeowners insurance to protect your investment -- unless you prefer owning a liability.
Coordinating insurance coverage with regards to these two properties becomes a possibility when you consider their theft policies. Auto insurance policies will cover the items in your car up to a certain dollar amount, while certain homeowners policies will cover items stolen from your car in different circumstances as well. If you do not have a home or condominium to insure, then you can insure for the maximum loss through your auto policy. However, if there is an overlap with your policies, then you can change the coverage limits to save money.
Automobile association & auto insurance
People all across America use AAA, the Automobile Association of America, or some other equivalent. Membership is a long-standing tradition for car owners because everyone has been, or knows someone who has been, in a tough situation involving car troubles -- and it isn’t fun. The services provided by automobile associations, such as sending someone to tow your car or repair a flat tire, are almost priceless when you are in a time of need.Coordinating insurance coverage in this situation might mean ditching your auto club membership, as many auto insurance polices now include this type of coverage. Additionally, more cellular phone companies now offer this service as well. Make sure to read the details of your auto insurance policy to make sure you aren’t paying double for this service.
Auto rental insurance & credit card travel insurance
Renting a car is a lot of fun, because not only do you get to ride a late model car, but you often also get to try out a hot dream car with tons of power and luxury. The downside of the car rental experience is that all of the large auto rental companies tend to tack on various fees and charges at the beginning and end of the trip. One of them is insurance coverage depending on the value of the car and miles driven.The way you can coordinate insurance coverage is by looking into the coverage that your credit card provides when you rent a car, if it’s a part of your card’s terms. You’d be surprised to learn that many platinum or other high-end credit cards cover your auto rental while you’re on a business trip or vacation. Call your credit card company for more details in order to save money while traveling.
Employer’s health insurance & personal health insurance
Health insurance is critical in today’s world, both for your financial and physical well-being. Small things like the common cold or a sprained ankle might be inexpensive should you need to visit the doctor, but because you never know when you might face larger, unexpected and significantly more costly illnesses, you need insurance. Depending on the state in which you live, the health insurance laws will vary. Being that health care is so important, it is vital to consult an expert in this area.The overlap in insurance comes in when you have a personal health policy and you are hired to a new job or when your current employer changes its health plan. It is in precisely these situations when you should consider coordinating insurance coverage.
Depending on the laws in your area and your overall health, it may be wise for you to keep your personal plan and your company's plan, but only if it makes sense. Be sure not to cancel your personal policy right away because it could be hard or costly to get it back later.
doubling up isn’t always best
Overall, there are overlaps in the various insurance plans that you might carry. It is important that you read each policy carefully in order to find out the details in your specific plan. Not doing so could result in hundreds of dollars wasted per year.It’s always a good idea to sit down with a financial planner who specializes in insurance, but understand that some insurance professionals work on a commission basis. With that being the case, you might want to work with a financial planner who charges an hourly fee for financial advice to avoid a conflict of interest.
With some scrutinizing and skillful detective work, you can insure yourself and save money at the same time.
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