As we mentioned previously, comparing insurance policies and coverage’s can be very confusing. A common trap that many fall into is not being able to resist the urge to simply choose the policy with the lowest premium. In other words Not Looking for More than Price Alone!
You need to consider a company’s reputation and the coverage that you are being offered for that low premium. Make sure that you’re comparing apples to apples and getting quotes based on the same coverage that you have now.
Let’s look at a few examples of the differences in coverage that we are talking about. If you just grab the first low price quote on your property and casualty insurance, you may find that it does not cover things like food spoilage, in the event of a power outage or stolen electronic devices worth more than $1,000. You may end up having to buy additional endorsements to cover things like this, which runs up your premium costs.
If you’re looking at disability or long-term care insurance, prices can vary depending on the length of the elimination period, the amount of time you must wait before coverage kicks in and whether the policy includes protection for future changes like inflation protection. Again, little things left out now, will cost you later in additional endorsements.
Be sure to consult your independent insurance agent to get quotes from multiple sources before you decide!