Why it pays to get multiple insurance quotes

The reasons why it pays to get multiple insurance quotes is more than locating the lowest priced coverage, it also provides you with a view of what different insurance agencies have to offer and what makes one standout more than the others. This makes it possible to get the best value for your money.

How many insurance quotes should I request?

The exact number of quotes a person should seek is a personal choice, but for most, the minimum number should be 3 from different insurance agencies. To be more comfortable in the selection process most people choose to have 5 to 6 different quotes.

Since most quotes can be obtained through an insurance agent’s website, obtaining up to 6 quotes should not take more than an hour.

What should be compared with the numerous insurance quotes obtained?

The following list is what is most commonly compared. Because we are all different with varying interests and factors that are important, this list will change from person to person.

  • Premium price per month or year. Most insurance companies charge interest when monthly payments are made.
  • Level of coverage for areas of interest. This can include the excess to be paid out when making a claim or how much liability coverage is provided. Look at each category and compare the level of coverage with the associated price for it along with what is actually covered.
  • Add-on options and the price associated with them.
  • Compare the hotlines and who will be answering the calls. This can be the agent or a call centre in another country.
  • Note how long it takes to receive each quote. Some will be instant while some may take time and be sent via email.
  • Compare the details included in each quote. If it is just the premium costs with no details, buyer beware.
  • Look for any available discounts each insurance company offers. With car insurance, the installation of a theft deterrent system should lower the premium costs. For home and business insurance, a fire suppression system installed should lower the premium costs.

What should I be wary of when asking for a quote?

Many agents and brokers use some type of pressure tactic to help persuade someone to take out an insurance policy with them. The most common is the instant discount if you sign up right then and there. If those agents are offering a good value with good coverage, they will still provide the discount once you are done comparing. For the others, it is used so you won’t compare their policy with others. This is generally done because their policy does not compare well to what others are offering.

Why are the discounts so different between opposing agents?

Each insurance company has their own set of priorities. What they feel is the most important will have a better discount. For most companies, this is the No Claims Discount. The reason is obvious, they do not like to pay-out on claims.

In conclusion

Remember all types of insurance is protection for the ‘just in case’ situation that most people try to avoid. If the price is your only concern, then remember you get what you pay for. For most, the right level of coverage for the price you want is the best way to protect yourself and why it pays to get multiple insurance quotes.