How to Compare Insurance Companies
Insurance is important to have in case of an accident or emergency, despite the fact that it may at times seem like a pointless expense. In some cases such as auto insurance, you may be required to carry a policy by law. According to a Washington Post article, while most states do not require renters insurance, some apartment complexes will not rent to tenants without it. Whether required or precautionary, or whether the insurance is for your car, home, life or personal property, comparing insurance companies should follow the same basic principles.
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Instructions
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Compile lists of insurance companies you are looking to compare and the different types of insurance you are looking to purchase. Many insurance companies provide significant discounts if you have multiple policies with them, so you may want to shop for auto insurance and homeowners insurance at the same time.
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Outline your coverage amounts for each type of insurance. If you are not sure what coverage you want, go online to the website of your first insurance company and get a quote. Make a note of the coverage levels you chose for your quote so that you can use it for each subsequent company.
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Visit the website of each insurance provider. Use the web page to get a quote on your desired insurance from each company. It is imperative that you provide the same information for each quote, both about the item(s) you want to insure and about the coverage you want. Without consistency, the quotes you receive will not be comparable to one another. Print each quote as you go.
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Lay out all your quotes on a table and compare them to determine which pricing is the least expensive. When comparing, take into consideration the amount of time that the policy spans. Is one website quoting the rate for three months and another six months? If you are looking at a monthly payment, are the payments spread evenly over the term of the policy or is there a larger payment for the first or last month?
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When you have decided which policy is the least expensive, examine other areas of the company, such as the customer service and financial strength. To do this, look at the stock price and recent news about the company, and call the customer service line to test how you are treated.
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Weigh all aspects of each company: price, strength and customer service. It may be beneficial to pay a few dollars more a month if you know that you have great customer service whenever you need it. Select the price and company you are most comfortable with, and then purchase the policy online, over the phone with the customer service line or in person with a local agent from your chosen company.
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Tips & Warnings
Some insurance companies offer a discount for buying online, which you won't receive over the phone or in person.
