Comparing insurance rates to get a better deal is one of the best ways to painlessly save money. When I bought my rental insurance, I received quotes for the exact same coverage amounts ranging from $129 to over $700. Needless to say, I preferred the one that was $600 cheaper.
Start with Your Current Insurance Carrier
You don’t necessarily have to switch companies to get a better rate. Sometimes they have a better offer, and you just didn’t ask. I had this happen with my auto insurance because they had two companies within one. The original quote was over $700 per 6 months. I asked them if they had any better offers, and my insurance was reduced to just over $400.
Check Insurance Company Records Before Considering Switching
Check-out your state’s insurance commission site for complaints and financial stability ratings. The reason why financial stability is important is because you want to make sure they’ll be able to pay you in the event of a future claim. When I chose Safeco insurance company when I lived in Texas for home insurance, I had never heard of them. So, I went online on Texas’ insurance commission website. I found out they had a record I was happy with and were financially stable. I saved a few hundred dollars on home insurance by making the switch.
Always Compare At Least Three Companies
You can compare insurance products by using an online comparison tool. You can also compare companies by talking to an independent insurance agent. I generally do both. Then follow-up on these two methods by making a few calls to see what you think of their customer service, and ask what discounts they might offer. For instance, I received a discount by taking an online driver’s safety course.
Ask About Insurance Bundling
A lot of times insurance carriers may give you a bundling discount. A bundling discount means you are purchasing more than one product from them. For instance, let’s say your purchasing home insurance and auto insurance, you may save $100 or more of your total annual price. Always ask your current carrier about bundling and new carriers you’re considering.
Think About the Coverages You Need
You may decide that you want more liability than the state minimum. This way you’re protected in the event of a major accident. You also won’t have to worry as much about someone trying to take your other assets because of a home or auto claim. To make up for the cost of higher liability, you can choose to have a higher deductible on your home, vehicle, or both.
Attaching Value to Customer Service is a Good Thing
If one company is $20 more per month, and you’ve been with them for a long time and they have great customer service, the extra money is worth it. When you call a potential new carrier, get a feel for how easy they answer your questions. The good thing about switching carriers is it isn’t a permanent decision. You can switch back to a brand-new carrier that has reasonable prices and great customer service in the future.