It's important to have insurance to cover many areas of your life (car, home and life itself), so you'll want to carefully consider a number of different factors to make informed insurance buying decisions. These may differ a bit depending on what type of insurance you're buying, as there are different aspects to housing insurance as compared to boat insurance, or to car insurance as compared to life insurance. But as long as you do your research and read the fine print before buying a new insurance plan, you'll be sure to find the best one for your needs.
The amount of needed insurance is one of the biggest things to consider, and it depends on the value of object you are insuring. For instance, a newer car needs much better insurance than an older car, because, quite simply, it's more valuable. A used car for $4,000 won't need full coverage, while a brand-new $30,000 car will. Another thing to consider is how valuable the object is to your life -- if a car is absolutely necessary for work, you may want higher insurance. If it's just a nice commodity, you may not want to pay as much.
You will also want to analyze your risks when buying insurance. If you take your truck off-roading, you may want to pay a little more for car insurance. If you are a police officer or a member of the military, you may want higher life insurance. If you make all of your money racing snowmobiles, you may want high insurance on those machines. You will just need to take a look at your lifestyle and decide how high the odds are that you will need the insurance, and then look for the best deal that gives you the appropriate coverage.