How to Compare Insurance Policies

Written By Charlotte Insurance on May 14, 2021. It has 0 comments.

a person on their laptop comparing insurance policies

You asked for quotes from multiple insurance agencies, just like you’ve been told you should do. They each have a different total. How do you compare them to find out which one is the best choice besides just looking at the price?

In general, it’s not a good idea to purchase insurance based on price alone, so if you’ve got multiple quotes to choose from, here’s how to compare them to find the right one for you.

Look at the Coverage Being Offered

Every insurance policy will include what is required, either by law or the lender. But that’s often only the bare minimum of coverage. Many times a policy quote will also include ideal (but optional) insurance coverage.

Put your quotes side by side to see what exactly is included in each one. The cheapest price might also give you bare minimum coverage. For a little bit more, you might be able to add additional and very important coverages.

Do a line by line comparison for coverage type. If something is missing on a policy you’re interested in, request a new quote with that coverage so you’re really comparing apples to apples.

Compare the Limit Amounts

When insurance quotes are put together, they also include suggested policy limits for each form of coverage. These are often negotiable so you can usually ask for them to be raised or lowered (which will change the price). But for the initial comparison, check these numbers across all the policies you’ve received.

A more expensive quote might include a lot more coverage. And sometimes you’ll find that a basic coverage (like your home value) will be the same policy limit across all quotes but not other coverage types. One insurance company might offer you a higher limit on your personal possessions or your valuables than another.

Do a line by line comparison to see what policy limit is being offered for the price quoted.

Check Deductibles

With any type of insurance policy you may buy, you have several choices for your deductible. While some deductible amounts may be common, none are “standard” so the estimates you have in hand might be using vastly different deductible amounts. This can drastically change your premium price from one policy to the next.

The rule of thumb with choosing a deductible is to make it high enough that you see real savings in your premiums but low enough you can afford to pay it if you need to file a claim. You also need to remember that the amount of your deductible will be subtracted from the total of any claim. So if you have a $1,000 deductible and file a claim for $1,200, you’ll only receive $200 (the difference between the claim total and your deductible).

The cheapest insurance policy doesn’t always provide the coverage you need. The most expensive policy might not either. It’s important to compare policies to find what will really work for you and give you the protection you need at a price you can afford.

Need a quote for a new policy or need a hand comparing a few quotes that you’ve already received? Here at Charlotte Insurance, we can help you protect your home, your family, your vehicle, your toys, and your business. We’re here to help! Contact us, today.

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