Plan your annual insurance budget to ensure you have enough coverage at a price you can afford. With proper planning, your insurance will cover emergencies without breaking your budget. Shop around to find the most coverage for the lowest price.

Your annual insurance budget may have to cover several different types of coverage. Insurance policies to consider include life, health, homeowners, renters, disability and vehicular. If you are self-employed, you might also need business insurance. Certain recreational activities such as boating may also require coverage. Make a list of the types of insurance your family must carry. Be realistic and do not try to avoid essential coverage to save money. The dollar you save today could cost you significantly during a future crisis.

After you determine the insurance policies you have to buy, figure out the extent of coverage you need. Often, buyers choose a higher deductible so they pay lower monthly premiums. While this might save you money initially, it can be a costly error during unforeseen events, such as an accident or death. Be realistic about the level of insurance you need to carry. If you cannot afford to pay a large deductible, it might be a better choice to pay a slightly higher monthly premium. Insurance is only beneficial if you can use it.

You can often lower your annual insurance budget by purchasing various types of coverage from the same carrier. Take advantage of companies offering discounts for buying more than one plan. For example, you might realize a percentage off your car insurance for buying homeowners insurance from the same company.

Supplemental insurance is another type of coverage to consider when planning your annual budget. Certain policies have gaps which could cost you big money in the event of an accident, illness or death.

Supplemental insurance helps to fill in those gaps by adding another level of coverage. For a minimal investment, you can secure maximum coverage.

You must also comparison-shop to find competitive rates. Ask for quotes to get specific figures for insurance policies. Be organized and keep all your inquiries in one place. Review them to determine which policies suit your budget and coverage needs. Weigh cost versus coverage to find the best plans for your family.

Never be a penny wise and pound foolish when it comes to buying insurance. Discuss insurance and investment options with your accountant to make sure your financial house is in order when you plan your annual insurance budget. Review your insurance policies every year. Your needs constantly change and policies can be updated to accommodate your lifestyle and budget. Updating and comparison shopping each year ensures you pay the least for the coverage you need most.