If you’ve a car or a home (or both), you probably have shopped for insurance at a certain point. The experience may seem straightforward, where you send your car or home details to multiple providers and you receive rates for coverage.
In this experience, rates are not the only factor you should be looking at, however. Cheaper doesn’t always mean better — or worse. It is often a matter of how much coverage is reasonable for what you’re insuring, and which provider can present a competitive offer for what you’re looking for.
With that in mind, you must be willing to look closely at the offers you’re getting. If you’re simply provided just a number, ask to see the terms of the policy. Only if you compare apples to apples, you will be able to see the most attractive offer.
But that is not everything. When it comes to insurance, you also need to make sure that you’re not overpaying for coverage that you don’t need. So while you’re going through the policy, ask questions about any coverage that seem excessive, or absolutely unnecessary.
Here are a few points that help you get a good coverage at a good rate.
Comparisons
Have your existing policies handy. If you know what you’re currently paying and present this information to new providers, they are more likely to beat the rate while providing comparable coverage. But before you seek just the same coverage, make sure that you review what you have closely and see if it is a good idea to revise any item higher or lower. For example, an old car that you bought 10 years ago and bought a comprehensive coverage for may be at a stage where just third-part liability coverage is more than sufficient for.
When you’re making your comparisons, make sure you ask about any missing coverage items. Something what is not clearly stated there may be not included. While you may not remember everything that you want in your home or auto insurance coverage, having several offers will definitely highlight these missing items. Ask if these additional coverage items are available and at what cost.
What is this?
Insurance terminology is complex even for people who are familiar with a lot of financial and business topics. So don’t be shy to ask a simple question, if anything isn’t clear. Insurance representatives are more than happy to explain what each item of your coverage is for. If something doesn’t seem logical or needed, voice your concerns and ask for explanations. You probably know more about your situation than anyone else. And there many exceptions and discounts there that you might qualify for if you just ask.
If you’re still unsatisfied with an answer or feel that you’re paying for more than you need, move on to the next provider. Seek more explanations online or from friends and coworkers. Although you might be fully aware of this industry, you need to sure that you’re getting what your particular situation requires. In all cases, don’t take answers that claim something is just the standard.
Shop openly
If you’re not satisfied with your existing insurance coverage or rate or with an offer, let the provider knows. For many insurance representatives, keeping a customer is a high priority. So they might work on your behalf to find where your coverage can be tweaked to reduce the rate or get you a better offer.
In general, shopping around is not something that you do discreetly. It is common that you shop your coverage and rate if you’re not satisfied. But if you find a provider who responds to your concerns, provides proactive customer service and handle claims promptly, you probably should stick with this provider even if you find a slightly lower rate somewhere else.
Insurance shopping
• Compare rates and coverage
• Ask for explanations and additions
• Bring up concerns and individual needs
• Let providers know if you’re unsatisfied
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
