When it comes to comparing one auto or homeowners insurance policy to another, remember that an insurance agency cannot sell you a policy any cheaper than their competitor. Before you think that I am crazy let me explain. If two different insurance agencies are quoting the exact same person with the exact same coverage and the exact same deductibles through the exact same insurance company, the law mandates that those rates will be exactly the same. One agent is not allowed to discount that policy by a single penny and get an advantage, and this is the law.
In reality, we all know that when you call around for auto or homeowners insurance rates you do not receive the same price from everyone. So how does an insurance agency get better prices than their competition? The honest agencies work hard at building relationships with many different insurance companies so that they can offer their clients many different options. They also do a lot of research for their clients so that they know exactly what their needs are and sell them coverage that fits those needs, and nothing else. In addition, they know how to uncover all of the available discounts to be applied to the policy.
There are some companies that use underhanded tactics when selling auto and homeowners insurance policies. When you receive two quotes through the same insurance company and the rates are different, remember that the cheaper policy either has less coverage, or a higher deductible, or the agent has completely left off coverage for something that may be important. Recently we have encountered unscrupulous agencies who throw in unwarranted discounts when quoting to make their price look cheap. They know that the price is going to change when the insurance company reviews the policy, but by that time you have already switched your business and are probably not going to switch again. You will just go ahead and pay the extra fees.
When you receive an inexpensive rate quote for homeowners or auto insurance, look the quote over very closely. Is it a good insurance quote or is it just a “cheap” price to get you to switch?