Many people think that the goal in purchasing insurance is to find the cheapest price, but that’s just not true!  

There are many dangers to price shopping your auto, home, or life insurance.  Today I’ll share what you need to watch out for. 

Insurance rates are determined by the amount of risk present.  Tickets in the past,  young inexperienced drivers, and even the area you live in, can determine how much risk you present and effect your rate.

Rates vary from one company to another, but cheaper isn’t always better.  Insurance companies are graded by how financially stable they are (which includes their ability to pay their claims if there was a major catastrophe!)  You don’t want to be with a low rated “fly-by-night” company, so don’t get tempted by those too good to be true rates.

Even if both companies are reputable, there are still important things to check for in comparing two quotes.  Begin by going through the coverage listed line by line and seeing what they show.  Are the liability limits the same?  What about the deductibles?   Differences in these coverages can drastically change the rate!  

Let’s say that you currently have a $500 deductible on your vehicle.  So you go out price shopping and find a cheaper price BUT the deductible is $1000.  That means you’ll pay out TWICE as much if you were to have hail damage or an accident.  Is it really worth saving a few dollars per month?  Often the answer is no.

When getting a quote, always request that the agent compare your policy “apples to apples”.  This means that they put the exact same coverage on your quote that you currently have.  This is the best way to compare on price.  Then have them give a quote with the recommended coverage, especially if they believe you’re underinsured.

Once you’ve compared on price, you’ll also want to look at discounts!  If you currently have your home and auto insurance with one company, but move just the auto to another company - chances are that your home insurance will go up!  That’s because many companies offer a discount for having multiple polices.  These discounts can save you hundreds of dollars each year, so it’s important to consider them when shopping.

And finally, always consider working with a local agency over an online company.  Why?  Because of all the perks!  Many local agents can offer the same (or better) prices, but provide much more expertise and knowledge when it comes to choosing the right policy.  

If you don’t have a solid understanding of how insurance works, and you choose your own coverage online, you risk underinsuring your family!  We can help prevent this without costing you a dime more!  

We want to be your local agency.  Call us today to start your auto, home, and life insurance quote.