How to Compare Rate Quotes to Find the Best Coverage
Every piece of insurance advice you'll ever read tells you to comparison shop before you buy coverage. Unfortunately these days that means people wind up with a stack of rate quotes they've printed out and no real sense of how each one really compares to the other. Even in the computer age, some things are better done with pad and pencil.
To begin weeding the good quotes from the bad, draw up a list of columns and record the following information. (Make sure you've used the same coverage limits for all the quotes so you're making accurate comparisons.)
- Annual and monthly rates.
- A telephone number for each company.
- The payment policy, including due dates and late penalties.
- Discounts for which you can qualify.
- The company's complaint ratio acquired from your state's department of insurance website.
- The company's ratings on A.M. Best and Standard & Poor's reflecting financial stability.
Although it's tempting to simply go with the lowest quote, a good price from a company on the brink of bankruptcy or one that's going to charge you an arm and a leg in late fees may not be right for your insurance needs. A slightly higher rate can likely be offset with multiple discounts.
By comparing key points of coverage, you can bring that mountain of quotes down to two or three real contenders. Then it's time to get on the phone, talk to a real person, and negotiate a comprehensive policy at a competitive, affordable rate.
