Unlocking Savings: How Shopping Around for Insurance Can Protect Your Wallet and Your Assets
Insurance can seem like a racket. But it’s absolutely essential. And not just because it’s the law in most cases. But because the proper insurance coverage can be the singular savior from financial ruin in the event of a catastrophe.
Recently our homeowners insurance renewed so we took the opportunity to do some shopping around for the best rates. It was the first time we’d shopped in a decade and boy, was it eye-opening!
With just a few phone calls we learned that our cars were over insured and our homeowner rates were outrageously high compared to other companies’ policy options. We switched companies for home and auto coverage and saved over $1700 a year!
Insurance might be essential, but it’s also one of the easiest ways to save money. Why? Because the product is practically identical across companies and the cost of coverage can vary widely.
It’s generally best practice to gather several quotes for any product or service, but for insurance it can make a difference of — like in our case — nearly two grand!
Some tips for getting the best possible insurance rates:
Do your research:
Talk to people with more experience and expertise than you when it comes to insurance coverage. NOT exclusively your insurance salesperson. Remember they are trying to sell you a product, so take product advice from a salesman with a grain of salt and verify each claim yourself. Trust but verify.
Ask your agent questions with specific scenarios.
“So if my home floods and everything is lost, what does this policy cover replacing?” “What if a tree falls on my fence?” “What if wind strips my roof shingles and we have a leak?” Keep probing to understand the steps to take in the event of an emergency and exactly what is covered and what isn’t.
Determine the coverage you need for your specific situation.
Just like with most financial matters, every person’s situation is different and there is no one-size-fits-all for insurance. So know your priorities and how you can customize your plan to support them.
Get multiple quotes.
Get AT LEAST three quotes for the appropriate level of coverage. Online quotes can take a matter of minutes to get multiple quotes for comparison.
Understand the steps to take in the event of an emergency before you need to.
Shopping for insurance might seem like a hassle, but taking the time to review your coverage and compare rates can save you significant money—just like it did for us. Insurance isn’t just a box to check off; it’s a crucial safety net that protects you from financial disaster when the unexpected happens. By making sure your coverage aligns with your needs and budget, you’re not only safeguarding your assets but also making a smart financial move.
Remember, insurance isn’t one-size-fits-all. Take the time to ask the right questions, seek advice from knowledgeable sources, and gather multiple quotes to ensure you’re getting the best deal. A little research and diligence can go a long way, turning a necessary expense into an opportunity for substantial savings. Don't leave your peace of mind to chance—be proactive, get informed, and make your insurance work for you.