The internet is flooded with resources for finding online insurance quotes, but very few offer advice on what to look at when comparing policies. One of the most important things to remember when shopping for a new auto or home insurance policy is that cost should only be a small consideration. It’s never a good idea to opt for the most expensive provider, but choosing the cheapest option based on a few instant insurance quotes is just as bad an idea. Here are a few tips on how to choose the right insurance policy for you.
Get It in Writing
Your first step to being able to really compare apples to apples is by getting everything in writing. This way, you can have something tangible to compare side by side that won’t differ depending on who you’re talking to or what time of day it is when you do. The fact is, calling an insurance agency and getting verbal information isn’t as reliable as having the actual policy in print.
The Low Cost Dead Giveaway
Beware of steep price drops. In your comparison, you may discover that one insurance policy offers a dramatically lower price than another. When this happens, you have to take a very close look at the fine details. A significantly lower price usually means that either something’s been left out, or coverage terms aren’t comparable.
Look Closely at Coverage Limits
Since your coverage limit directly impacts the price you pay for your insurance premiums, sometimes you're tempted to opt for car or home insurance coverage that has a low limit. It makes sense if you want to cut down on the money you’re going to be paying into the plan each month. But this could be one of your biggest mistakes. Setting your coverage limit too low could save you money now, but has the potential of coming back to bite you if you ever have to use your plan and find that your coverage isn’t enough to pay for the damages. In that event, you’ll be personally liable to pay out of pocket. If you’re at fault in a car accident or someone slips and hurts themselves in your home, you could be sued by the other party’s insurance company directly. When picking the right level of coverage for your home insurance policy or auto insurance policy, ensure that you have enough coverage, but stay away from taking out too much coverage that you’re not likely to use.
Look for Exclusions in Coverage
When comparing insurance quotes, you have to be able to tell what’s missing as well as what’s present on an insurance policy. This is where patience, a keen eye, and an understanding of the terminologies comes into play. There will be many times in your side-by-side comparison of online insurance quotes that you’ll realize not all coverages are standard. For example, you may be able to save $20 per month on a particular auto insurance plan, but on closer look discover that the slightly more expensive plan offers free rental reimbursement and 24-hour roadside assistance. When you think you’ve finally got the insurance policy that’s right for you nailed down, make a final line-by-line comparison with your second choice to ensure that both offer the exact same coverages.
What is the Difference between Named Perils and Open Perils on your Insurance Policy?
While comparison shopping for insurance, you will encounter two different types of policies: named perils and open perils policies. Understanding the difference between the two insurance policies w...
Read More →
How does the Insurance Company Determine the Cost of Each Driver on My Policy?
Thanks to online comparison tools, car owners looking for the best auto insurance coverage can look at competing quotes from a range of insurance companies. Many wonder how a company determines the...
Read More →
Does Having a Trampoline or Pool Increase My Home Insurance Cost?
Before you put in a swimming pool or purchase a trampoline for your children, consider the additional cost to your home insurance rates. Coverage for a house that already has a pool is much higher ...
Read More →