When shopping for auto and home insurance, comparing quotes effectively ensures you get the best value for your money without sacrificing necessary coverage. Use this step-by-step checklist to guide your process:
1. Gather Your Current Policy Information
Before shopping for new quotes, review your existing policies to understand your current coverage and costs. Note:
- Policy declarations page: This outlines your coverage limits, deductibles, and endorsements.
- Current premium: How much you're paying annually or monthly.
- Discounts applied: Bundling, good driver, safety features, etc.
- Coverage exclusions: What your policy does not cover.
2. Identify Your Coverage Needs
Determine if your needs have changed. Consider:
- For Auto Insurance: Liability limits, comprehensive and collision coverage, deductible amounts, and optional add-ons: roadside assistance, rental car reimbursement, gap insurance.
- For Home Insurance: Dwelling coverage (enough to rebuild your home at current costs), Personal property coverage (replacement value vs. actual cash value), Liability limits (e.g., $300,000 or $500,000), Deductibles for standard claims and separate deductibles for wind, hail, or earthquakes, and Endorsements: water backup, equipment breakdown, or extended replacement cost.
3. Decide on Comparison Factors
When reviewing quotes, compare the following:
- Coverage Limits: Ensure each quote matches your desired coverage amounts.
- Deductibles: Check if the quoted deductibles align with your budget.
- Policy Features: Look for coverage specifics like endorsements or exclusions.
- Premium Costs: Compare annual and monthly premiums for the same coverage levels.
- Discounts: Identify potential discounts for bundling, safe driving, or home security systems.
4. Use Reliable Comparison Tools
- Online Quote Tools: Sites like Policygenius, The Zebra, or NerdWallet can provide multiple quotes at once.
- Independent Agents: Work with agents who represent multiple insurers for a broader range of options.
5. Ask Insurers Specific Questions
When speaking with insurers, ask:
- For Auto Insurance: Are there usage-based discounts (e.g., telematics programs)? How does your accident forgiveness program work? Are there discounts for low mileage or multiple vehicles?
- For Home Insurance: Do you offer discounts for smart home technology or security systems? What’s covered under water damage or flood policies? Is there extended or guaranteed replacement cost coverage?
6. Review Terms and Conditions
- Exclusions: What isn’t covered in the policy.
- Claims process: How claims are filed and processed.
- Renewal terms: How premiums may change after the first year.
- Policy bundling: If you’re bundling auto and home insurance, confirm the discount amount.
7. Assess Customer Reviews
- Research customer reviews on platforms like Trustpilot or Better Business Bureau.
- Consider the insurer’s reputation for customer service, claims handling, and billing transparency.
8. Check for Hidden Fees or Restrictions
- Cancellation fees if you switch providers mid-policy.
- Fees for policy changes or installment payments.
- Restrictions on coverage if you live in high-risk areas (flood zones, wildfire regions).
9. Request and Save Quotes
- Request written quotes from at least three insurers.
- Keep a record of the quotes for reference during negotiations.
10. Negotiate With Your Current Insurer
Before switching, present the quotes you’ve gathered to your current insurer. They may:
- Match or beat the competitors’ rates.
- Offer additional discounts or incentives to retain your business.
Once you’ve compared all options:
- Select the policy offering the best balance of coverage, cost, and service.
- Ensure there’s no gap in coverage when switching from your current provider.
12. Regularly Revisit Your Policies
Even after switching, plan to shop for new quotes every three years (or sooner if your circumstances change) to ensure you’re still getting the best deal.
