Paying too much for insurance is common amongst those who can afford it. Still, just because you can afford it doesn’t mean you need to. Some insurance agencies may pressure you to purchase too much insurance for their own personal gain. Know the best tips to help you avoid being over-insured in Los Angeles.
A lot of things determine the cost of your home insurance. The main rule of thumb when purchasing homeowners’ insurance in Los Angeles, CA, is to buy an amount that’s based on the square footage of the house and not the entire property. Have your house insured for the replacement cost rather than market value. This is because market value includes the value of the land, which insurance likely won’t touch when replacing your home.
Renters’ insurance is crucial if you own valuable items such as electronics or collectibles. Just make sure you know what to look for in a renters’ insurance policy. You should only insure items you’d want replaced—not everything you own. Understand that even though your landlord has insurance, your belongings are not covered under it.
If you’re insuring a car that’s on its last leg, it doesn’t need comprehensive or collision insurance. An agent may try to sell this to an ignorant driver, but you should know that your teen’s car isn’t worth fixing if it’s totaled.
One of the most common types of insurance you might be paying too much for is life insurance. If you have an old policy, it might be time for an update. Ensure you’re only paying for what you need and what you can afford. Work with a professional to determine if a permanent or term policy is right for you.
The best tips to help you avoid being over-insured in Los Angeles include working with a respected agent. Trust a local company that has your best interests in mind. Saferoad Insurance gives you peace of mind whether you’re investing in home, auto, life, or commercial insurance. Reach out today for more information about what our agents can do for you.