It's NOT just about the cheapest price
Many people think that the goal in purchasing insurance is to find the cheapest price, but that’s just not true! There are many dangers to price shopping your Bellefontaine Ohio auto insurance and home insurance. Today I’ll share what you need to watch out for. Insurance rates are determined by the amount of risk present. Tickets in the past, young inexperienced drivers, and even the area you live in, can determine how much risk you present and effect your rate.
If it seems to good to be true, it probably is
Rates vary from one company to another, but cheaper isn’t always better. Insurance companies are graded by how financially stable they are (which includes their ability to pay their claims if there was a major catastrophe!) You don’t want to be with a low rated “fly-by-night” company, so don’t get tempted by those too good to be true rates.
Watch that the quote matches as closely as possible with your existing policy
Even if both companies are reputable, there are still important things to check for in comparing two quotes. Begin by going through the coverage listed line by line and seeing what they show. Are the liability limits the same? What about the deductibles? Differences in these coverages can drastically change the rate!
Let’s say that you currently have a $500 deductible on your vehicle. So you go out price shopping and find a cheaper price BUT the deductible is $1000. That means you’ll pay out TWICE as much if you were to have hail damage or an accident. Is it really worth saving a few dollars per month? Often the answer is no.
When getting a quote, always request that the agent use the existing coverage as a baseline. This means that they put the exact same coverage on your quote that you currently have. This is the best way to compare on price. Then have them give a quote with the recommended coverage, especially if they believe you’re underinsured.
Note: we use the existing policy information to start our quote, BUT we always make recommendations. For example, if you own a home and have a low liability limit, we'll recommend a higher one. Why? Because if you have a severe auto accident and a low liability limit, chances are good that limit could get used up. What's next in line to help pay for injuries and damages? Your house. Our job is to protect you and your lifestyle. And we take that responsibility very seriously. Other note- the premium difference between your current auto insurance limits and the next level up is usually VERY small. So don't take a chance.
Is your new quote based on facts or just a stab in the dark?
I just had this discussion with a customer. She got a quote for a new home purchase from a competitor. She reviewed the quote with me over the phone. Besides several obvious errors, what got me was the language at the bottom- it clearly stated that final pricing would depend on the application and running the necessary reports. So basically, it was a best case scenario not based on fact. Guess what folks- any insurance agent or direct carrier can throw numbers at you. It's situations like this that make my blood boil- people are given pie in the sky figures to reel them in, then an often entirely different set of numbers after the legwork has been done. At our agency, we don't do this. When we give you a quote, what you see is as close to the finished product as possible. No guesses. No surprises. You can read what to expect when you get a quote from us.
It all comes down to this: do you want a guess that may bust your budget? Or do you want facts that you can budget on?
Discounts can make a BIG difference
Once you’ve compared on price, you’ll also want to look at discounts! If you currently have your home and auto insurance with one company, but move just the auto to another company - chances are that your home insurance will go up! That’s because many companies offer a discount for having multiple polices. These discounts can save you hundreds of dollars each year, so it’s important to consider them when shopping.
Work with an Independent Insurance Agent to get the MOST choices and discount availability
And finally, always consider working with a local agency over an online company. Why? Because of all the perks! Many local agents can offer the same (or better) prices, but provide much more expertise and knowledge when it comes to choosing the right policy. If you don’t have a solid understanding of how insurance works, and you choose your own coverage online, you risk under-insuring your family! We can help prevent this without costing you a dime more!
Call us today at (937) 592-4871 to discuss your Bellefontaine Ohio auto insurance and/or home insurance. You can also complete our auto insurance quote request or home insurance quote request and a member of our staff will contact you to get the conversation started.