How To Compare Insurance Premiums

From your car and home to your life and health, you have many things to insure. Choosing the right insurance policy means more than just picking the plan with the lowest premium. To get a true picture of the cost of the plan, you also need to take into account the co-payments, deductibles and other charges. By comparing the total cost of each plan, you will be able to predict your out-of-pocket expenses and choose a plan that meets your needs and the needs of your family.

Instructions

Health Insurance

• 1

  Make a comparison sheet that lists each category of insurance expenses. Include the premium on the first row, followed by the deductible and any co-payment that applies to services.

• 2

  Multiply the monthly plan premium by 12 to get the annual cost, then enter that number on the first row of your worksheet. Enter the annual deductible required before the plan starts paying benefits, and the co-payments you will be responsible for. Include any recurring expenses, like medication or regular doctor appointment costs, and how they are covered under each plan. Add up the numbers to get the total possible out-of-pocket costs of every plan.

• 3

  Compare the total annual out-of-pocket costs for each plan and whittle your list of choices down to the two or three that provide the lowest overall costs. Now you can change variables, like the amount of deductible and specific coverage, to get your costs even lower.

• 4

  Compare the rates of several different kinds of coverage when shopping for health insurance. High deductible plans, for instance, typically require you to spend more money before the plan kicks in and pays benefits. In exchange, the premiums generally are lower than for a typical plan. Compare the total out-of-pocket costs for a high deductible and a traditional plan to determine which is the better deal.

Life Insurance

• 5

  Calculate how much life insurance you need. According to CNN Money, it's standard to require between seven and ten times your annual income in life insurance coverage. Therefore, if you make $40,000 a year, you would need between $280,000 and $400,000 worth of term life coverage.

• 6

  Shop a wide range of sources when looking for life insurance, including local agents and online comparison sites like Insure.com (see the Resources section). The rates for life insurance may vary widely.

• 7

  Check the prices of term and whole life when shopping for life insurance. Term life usually is cheaper, since it pays a death benefit only. Whole life insurance includes an investment aspect for retirement or before.

• 8

  Compare the premiums on each policy that you are offered, and read the fine print carefully. Make sure that the rate you are quoted is guaranteed for the life of the policy. Choose the policy that gives you the lowest premium for the coverage level that you need.

Auto Insurance

• 9

  Review your existing automobile policy to determine how much liability and personal injury coverage you have, and whether or not you carry coverage for collision and comprehensive. Check with your state to ask about the minimum liability coverage required by law.

• 10

  Check the Kelley Blue Book value of your car and determine if you still need to carry comprehensive and collision coverage, which repairs or replaces your vehicle it is stolen or damaged, explains CarInsurance.com. Some premiums for these benefits add up to more than your vehicle is worth. Request quotes with comprehensive and collision coverage and without. This will allow you to compare the rates and determine if the extra coverage is worth the price.

• 11

  Determine the amount of deductible that you would like to pay. As with health insurance, the higher the deductible, the lower the cost.

• 12

  Log on to several car insurance comparison sites like Insure.com and CarInsurance.com (see the Resources section). Enter information about all of the drivers to be placed on the policy, as well as the make, model and year of your vehicles.

• 13

  Choose the types of coverage and levels that you desire, including the amount of deductible. Compare the premium quotes that you receive from each site.

• 14

  Contact car insurers in your area and get quotes for the coverage that you need. In some cases you might be able to find more affordable coverage by going to the company directly.

• 15

  Compare the quotes you received from each car insurer with the quotes that you received from the online comparison sites. Choose the premium that best meets your financial and coverage needs.