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ven if you know exactly how much insurance you want or need, there’s another crucial element in this process. You have to find the combination of a great insurance agent AND insurance company that will provide the coverage you want at the right price point.

An insurance agent can be invaluable in helping find the right company.

* Note. There are tens of thousands of insurance agents representing thousands of insurance companies in this country that sell auto, homeowners and other coverages individuals need. No two companies offer all of the exact same policies. Some companies want only certain types of drivers or homeowners. Some offer higher limits. Some offer what might be described as bare-bones coverage.

* Note. There are at least six different coverages that are part of auto insurance!

* Note. Homeowners insurance policies have limits on what they will cover in terms of possessions, particularly jewelry, fine art and computer equipment. Many insurers offer substantial discounts (10%, even 20%) if you insure both your auto and homeowners policies with them at the same time!

Does the insurance company offer what is called, an "umbrella" policy, which provides additional liability coverage over the limits of your homeowners and auto policies? Do you even need an umbrella policy?

How do you find what’s best for you?

You could shop on the Internet for insurance. There are numerous sites that have price quotes for auto, homeowners and life insurance policies. But what coverage is available under these policies? And how can you be sure that you’re buying enough coverage? Who can you call to ask questions to, or get advice from if you get stuck or are unsure about how a particular coverage works, what it covers and all the contingencies associated with it?

You could look in the telephone book and find dozens of companies that sell auto, homeowners and life insurance policies. You can call each of these companies and talk to one of their employees.

But does this person know your insurance needs? Can he or she assess how risk-averse you are based on a fairly short phone conversation? Does this person even have a license to sell insurance?

You could call an insurance agent who represents multiple insurance companies. An "independent agent" represents all sorts of companies -- AIG, Progressive, Travelers, Safeco, etc. -- Some of these companies are fine, financially sound insurers, and might be potentially good for the consumer and then there are others which are probably NOT fine, NOT financially sound insurers and could be potentially bad for the consumer.

The real question in this situation comes down to how did the agent decide to write insurance with these companies and why? One of the biggest considerations agents use when deciding on a company to represent is simply whether that company will let them - when an agent is getting started it can be extremely difficult to be appointed to insurance companies of choice. Many times there is no consideration other than, whether or not, for example, AIG, or Progressive will actually appoint the agent. Finally, after receiving multiple appointments from different companies, an extremely important metric the independent agent will use when deciding where to place business is the commission rate, special promotions, or bonuses which increase the thickness of their wallet, not necessarily based on the quality of the company or the cost of the policy.

* Note. Some of the insurance companies used by independent agents, may not even be admitted to write insurance in the State!

* Note. The independent insurance agent is not a bad person, just overwhelmed! If an agent represents 10 - 20 companies there can literally be thousands of options across all the different types of insurance being offered all of which have a multitude of variables regarding leverage points, financial stability data, exclusions, claims handling, etc.

* Question. Would you rather have a "Jack of all trades, and a Master of none!" or would you prefer to make sure your new agent is a "Master of your insurance needs and the policies which meet your needs?!?"

You could call an insurance agent who represents one insurance company. These companies -- State Farm, USAA, Farmers, the Auto Club, etc. -- are fine, financially sound insurers.

The consideration in all of the options listed above is the quality of the agent in question - not how many companies they represent.

* Tip. You should call the agent who has done their homework and completely understands all the options and leverage points for the coverage you need. Your BEST Option is to call Central Texas Insurance - we have done our homework!

What should happen after you decide who you are going to begin working with, is they should assess your insurance needs, once this step is complete, they can then find the the coverage that best suits you, keeping the price & your budget in mind.

About price -- it’s not everything. Cheap doesn't equate to good. Unless you have few assets to protect, the lowest-priced policy is rarely the best deal for you. This doesn't mean you need to buy the highest-price policy, either. Think Value.

* Tip. Also, be aware that insurance companies are always hungry for policyholders who drive safely, have safe cars, live in new or refurbished homes, and are health-conscious. Insurers offer a variety of discounts.

- Does your car have airbags, antilock brakes? Discount.
- Is your teenage son or daughter who drives your car(s) a good student? Discount.
- Does your home have an alarm system? Discount.
- Are you a nonsmoker? In good shape? Discounts for life insurance.

Your agent can make sure you are getting all the discounts you are entitled to.

* Note. Your overall insurance program for you, your family, your home(s), your car(s), your assets, your career, even your life, will probably have several components. Most states require you to have auto insurance with at least minimum liability limits. Your mortgage lender will require a homeowners policy. Everything else is basically optional.

Ultimately, you will decide what to protect with insurance and what risks to assume yourself. Over the course of the next Circle of Safety reports & articles, we will examine the various personal insurance policies, including what they cover and what they don’t.

Look for us to continue this next week with our Brand New Circle of Safety Series: "CIRCLE OF SAFETY: HOW TO PROTECT YOURSELF WITH AUTOMOBILE INSURANCE..."