How to Pick the Best Insurance Quote
January 25, 2024Getting comprehensive insurance coverage at a cost that makes sense can seem like a challenge. You can’t pick an insurance policy on cost alone as doing so will often lead to insufficient coverage, resulting in expensive out-of-pocket coverage gaps at claim time. At the same time, you can’t ignore cost completely as that can affect which policy makes the most sense for your personal budget. When looking over insurance proposals, here are some tips on how to pick the best insurance quote:
1. Review Your Current Coverage
Even if you are not starting a search for new coverage, it’s important to review your current insurance coverage. It is essential to have an idea of your current coverage limits, policy cost, and existing coverage gaps.
Generally, most of what you need to know about your current policy can be found on your insurance policy DEC page. From there, you can figure out what is and isn’t working with your current policy as well as anything that is or isn’t covered and any new risks or liabilities that need to be taken into account.
2. Determine the Level of Coverage You Need
As part of the process for getting insurance quotes, you will need to determine the level of coverage you need. Each carrier provides basic coverage options and limits, but it is important to consider endorsements you may need to have added to the policy, which would address individual sources of risk. This type of customization can make the difference between something being covered or a claim being denied.
Each person needs to strike the right balance between premium, deductible, and coverage needs. Essentially, you are choosing to self-insure or take on the risk, financial or otherwise, for anything that isn’t specifically covered by your insurance. Although some level of self-insured risk may work for some people, it also leaves coverage gaps that are potentially very costly.
In general, the more coverage you need, the higher your premiums will be. There are some things you can do to lower your premium costs such as adjusting deductible values or placing multiple policies with a single carrier—commonly called “bundling” coverage. We will discuss cost-saving concepts more a little later in this post.
3. Request Several Quotes For Comparison From Reputable Insurers
Once you have an idea of the coverage you need, and the level you’re looking for, you can start getting quotes for comparison. Part of picking the best insurance policy is making sure you are comparing your options and comparing enough of them.
If you only get one or two quotes, you are limiting your options and may not have even received a quote from the carrier that would have been the best for you.
Also, make sure you’re getting quotes from established, reputable insurers that are in good financial health. Paying for insurance coverage does you no good if the insurer isn’t around anymore to pay out your claim. Because independent insurance agents or brokers have access to quote with multiple carriers, they can be good resources for evaluating and choosing an insurance company.
4. Ask About Discounts
Insurers offer discounts in different ways. If you don’t have a history of claims, insurers will often provide some sort of discount or reward for you being a low-risk insured. Any type of “good driver discount” for auto insurance is a good example of this discount in action.
In some cases, bundling multiple insurance policies with one insurer can provide a discount or some sort of bonus. Other discounts offered could include a pay-ahead discount or pay-in-full discount where you can pay your premium in a lump sum annually or quarterly instead of monthly.
In some cases, things like this can help you get the cheapest homeowners insurance or another type of insurance without sacrificing coverage. When comparing insurance quotes, especially if you have already narrowed it down to a couple of the best options, knowing the available discounts and what you are eligible for can be helpful in choosing the final option that is best for you.
5. Accurately Compare Insurance Quotes
There are many things to consider when comparing different insurance quotes, but cost, carrier, & coverage limits are three of the biggest. We already discussed the importance of reviewing quotes from reputable, financially stable insurers in section three and possible cost-saving discounts in section four. These two considerations are often where people stop when comparing insurance quotes.
Insurer and cost are important factors to compare, but of greatest importance is making sure you are comparing the coverages and limits being offered accurately. As you review insurance quotes, you must compare the types of loss that are covered, coverage limits, deductibles, and more in addition to the premium under a specific policy.
As noted in section two above, more coverage often requires more premium, which means the reverse is also true–a quote with a lower premium could simply be offering less coverage. You need to be able to clearly answer whether a specific quote is actually saving money or simply providing less insurance. You do not want to sacrifice coverage you need just to get a lower premium.
6. Work With an Independent Insurance Agent
Navigating insurance coverage and quotes can be challenging. There are many details to work through to make sure you are getting the comprehensive coverage you need that will keep you covered in case of future claims without anything that is unnecessary or priced unfairly.
This is one of the many benefits of working with an independent insurance agent. Not only can they offer you an experienced and informed opinion based on your individual situation, but they can also take care of getting multiple quotes for you to compare.
Working with a trusted independent insurance agent creates less stress for you as they can handle the back-and-forth communication and data gathering needed to obtain quotes. Once quotes are received, an independent agent can help you evaluate them, so you have peace of mind knowing you are getting the right coverage at a price that is clear and fair.
Get Comprehensive Insurance Coverage With Ruhl Insurance
These are just a few tips for how to pick the best insurance quote. The best coverage and quote for you will depend entirely on your specific situation and individual factors. Working with an experienced, reputable independent insurance agent can be invaluable in making sure your insurance coverage is accurate and comprehensive. If you’re in the market for insurance or need to review your current coverage, contact Ruhl Insurance at 717-665-2283 or 800-537-6880.
Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.