Discover Expert Tips for Insurance Quoting and Learn How to Save Money

Why Quoting Insurance Matters?

Getting quotes for your car (auto) and homeowners (or renter’s) insurance is a simple step that can lead to significant financial savings. As Financial Accountability Coaches, we’ve seen how taking a few minutes to get quotes can make a big difference in your financial health. This blog offers practical tips to help you secure the best coverage at competitive rates.

Insurance is a key part of your financial safety net. It helps manage risk and protect your assets. While it may not always be top of mind, regularly quoting your insurance ensures you’re not overpaying on premiums and that you’re properly covered as your life changes.

Understanding Your Options

When it comes to insurance, there are two main types of providers: Captive Insurance Agents and Brokers. We have a detailed overview of the differences in this blog "A Captive Insurance Agent or a Broker? What’s the Best Option for You?" but in a nutshell…

• Captive Insurance Agents represent a single insurance company and can offer excellent products and service. However, their options are limited to what their company provides. Many captive insurance companies don’t allow brokers to sell their products, so you’ll need to shop each captive agent separately.
• Brokers can shop around with multiple insurance companies to find the best fit for your needs. This is particularly helpful if your circumstances change, as brokers can compare different policies and rates across various providers.

Choosing between a captive agent and a broker depends on your specific situation.

When to Quote Insurance

Quoting your insurance should be done regularly—ideally, once a year or whenever you experience a major life change. Events like getting married, buying a new home, or adding a teen driver to your auto policy can all impact your insurance needs and premiums. Quoting during these times ensures you’re getting the best rate and that your coverage fits your current situation.

Why Insurance Prices Vary

Insurance prices vary because different companies assess risk differently. Each company has its own formula for calculating premiums, based on factors like your age, driving history, location, and credit score. Some companies might charge more for certain factors, like having a teen driver, while others might offer discounts for safe driving or good grades.

Remember, the cheapest option isn’t always the best. When choosing an insurance provider, consider more than just the price. Look at the company’s claims-paying track record, client ratings, and customer service. There isn’t a one-size-fits-all “best” insurance company—but with good research, there is a best company for you. Your situation and needs are unique, so it’s crucial to find the right fit, not just follow what friends or family use.

Strategies to Maximize Your Savings

Here are some strategies to help you get the best value on your insurance:

• Quoting: Make it a habit to quote your insurance every year and/or when you have a life change. Insurance companies frequently adjust their premiums, and what worked last year might not be the best deal this year.
• Adjust Deductibles: A higher deductible generally means lower premiums, but it also means you’ll pay more if you need to file a claim. For example, raising your deductible from $500 to $2,500 can significantly reduce your premiums, but ensure you have an emergency fund to cover the higher deductible if necessary.
• Self-Insurance: With a well-funded emergency account, you can handle small claims yourself, reducing the need for low deductibles and high premiums. Most people have few claims, making this a practical approach for many.
• Exploring Different Providers: Each insurance company prices risk differently, so it’s important to shop around. For instance, one company might charge more for teen drivers, while another offers discounts for safe driving or good grades. By comparing quotes from different providers, you can find the best deal tailored to your needs.

Quick Tip: Getting an Apples-to-Apples Comparison

When quoting insurance, it’s crucial to compare policies on an apples-to-apples basis. Request a Declarations Page from your current insurance carrier. This page provides a detailed breakdown of your existing coverages in insurance-specific language. Share this with any new insurance company you’re getting quotes from to ensure you’re comparing similar coverages and making an informed decision.

Final Thoughts

Insurance can be confusing, but our goal is to bring clarity to this important part of financial planning.

“An investment in knowledge pays the best interest.” – Benjamin Franklin

As Financial Accountability Coaches, we don’t judge, nor do we have any stake in which products or services you choose. This allows us to serve you with complete objectivity. If you’re interested in working with a Financial Accountability Coach or want to learn more about how coaching can benefit you, please reach out. We’re here to help you make informed decisions and achieve your financial goals.

Disclaimer: We do not sell insurance, investments, or other products related to insurance. This information is provided for educational purposes only. You should consult with a licensed insurance agent or financial advisor to assess your individual circumstances and find the best solutions for your needs.

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About the Author

Dave Jacobson is a nationally recognized personal finance expert and the founder of Coach Connections, LLC, a membership that trains and mentors financial accountability coaches. Since 2009, he's been passionately educating people on the dynamics of money—its workings, the psychology behind financial decisions, and its potential as a tool to impact happiness.

Recognizing the need for improved coaching services, Dave founded Accountable Network. This platform helps clients connect with the right Financial Accountability Coach, each approaching coaching on a case-by-case basis, adapting methods to fit individual situations. Accountability is a core component, reflected in the network's name—Accountable Network.

Dave connects with teenagers through innovative means. His brainchild, the video game Money Mavericks, transforms personal finance education into an engaging experience for the younger generation. Emphasizing the significance of early financial literacy, Dave sees the game as a dynamic and enjoyable tool for teens to grasp essential mindsets, habits, and behaviors crucial for fostering happiness and achieving success.