Getting insured for your home and auto is just another part of being an adult that frankly isn’t quite fun. Although we can all sit around whining and moaning about the fact that we need to spend more money on top of the money we already spent on these assets, it’s most important to think ahead and start really considering how to understand our insurance policies.
This is especially important for all the young adults out there, or people buying their first car or home. These are two major reasons why you’ll need insurance so it’s good to be aware of some factors like how long it takes for the policy to kick in and other factors.
Here is some very handy information to know about your car and auto insurance.
Understanding Home and Auto Insurance
If you’re completely oblivious to what insurance is for, that’s okay, many people don’t fully understand it. The important thing to note about home and auto insurance, as well as any insurance, is that it is a hedge against bad things happening. Instead of paying out of pocket, an insurance company helps you pay for damages you get to your car or if something happens to your home. The pros behind MyChoice.ca stress that not every policy is the same, which is why people get what is called a quote. Getting a quote just means that you’re getting an estimate on the cost of your policy. It’s also good to know that a deductible and a premium are the costs of either what you are paying yourself (deductible) or the premium (cost of the policy itself).
How Long it Takes for a Policy to Activate
Another good question you may have is how long it will take for your policy to activate. The short answer is as soon as you start paying into the policy. This could mean paying the entire annual lump sum, paying a down payment on your coverage, or when you start paying your monthly payments. It essentially just means that once you start paying, you will start being covered. The best thing to remember though is that you want to get an insurance policy before you purchase the home or vehicle. If you’re in the process of doing so, it’s best to be insured as soon as you sign on the dotted line and the vehicle or property becomes yours.
How Bundling Insurance Can Impact This
Bundling insurance doesn’t usually impact how fast an individual policy kicks in, but it does impact it in another way. Bundling your insurance coverage makes it much more simplified which could theoretically make the process faster. When you can get your home and auto finished in one contract, you aren’t emailing or calling different brokers and filing different paperwork to ensure that everything is in order, so in a roundabout way, it is faster by bundling.
Why Bundling Home and Auto is Worth It
When it comes to these two types of policies, it’s sometimes a good idea to bundle. The first benefit, as previously alluded to, is that it helps speed up the process by killing two birds with one stone, so to speak. Secondly, there are sometimes discounts to bundling insurance that the company can reduce the cost or help alter your premiums because you’re buying two products from them. This is something to consider when insuring a vehicle or property.
Best Options for Paying for Insurance Coverage
Now, when it comes to paying for your insurance coverage, you have some options. The most common way that people will pay for their insurance is by paying on a monthly basis. This is a way to help keep from paying a lump sum out of pocket. The second most common is paying the annual amount upfront. This is easier than paying monthly because you get it done in one fell swoop, and you can actually get a small discount for paying all at once. Lastly, there are also bi-annual or bi-monthly payments which help break up the bigger monthly or annual payments into smaller increments. They all have their advantages, so it’s about picking one that works best for you and your finances.
The wonderful wide world of insurance is just another part of growing up and becoming a full-blown adult, but you don’t need to fear it anymore now that you have some basic information regarding home and auto, as well as how long it will take when your policy kicks in.