Josh Elledge - Chief Executive Angel
Check out my FAVORITE place to shop for insurance:
Because of the mind-numbing options, terms, limits, exclusions, and riders, shopping insurance can be one of the most confusing and overwhelming tasks of the home economist. But consider this: Untold millions of dollars are spent competing for customers; assuring us insurance is BIG business. Due to competition, there is always someone who is the best fit for your needs and budget. You just need to find them.
Steps for Getting Started
Step 1: Study before you start. You need to understand insurance terminology, know your state's requirements by law, and more. Because we're talking possible savings of hundreds of dollars, it is well worth the investment in yourself to gain this knowledge.
Step 2: Dissect your current policy. You have to compare individual policy components head-to-head. A tactic of insurance companies is to tell you that the only reason another quote is lower is because it covers less. They then go on to tell you how crucial it is to not have less than what you already have and to stick with them. In order to stay in control of your insurance dollars, you must be armed with understanding the lumped-together coverages that make up your whole policy.
Step 3: Have your information at the ready. In addition to your current policy, you'll need things like your social security information, driver's license, and, in some cases, information about other household members and/or assets to be included in the coverage.
Step 4: Begin shopping BUT leave contacting your current insurance provider until last. You need other quotes, so you can leverage that information. Your current company won't be as competitive if you don't have proof you can get the exact same thing for less elsewhere.
Hitting the Insurance Marketplace
Option 1: Call or visit local offices of specific providers. This direct method has the benefit of you staying in control of who gets your information. By speaking to a specific company, you're not releasing your information to be bought and sold numerous times.
Option 2: Call or visit a specific independent agent online or in person.This method saves fielding numerous calls, but beware. An independent agent makes their money on commission, and may be tempted to steer you toward an insurer that pays higher. And, in the course of getting you quotes, they may release your information to be bought and sold in the insurance lead market.
Option 3: Shop through a website that supposedly compares insurance policies for you. Sadly, most “Insurance comparison” websites are nothing more than a service to sell your info to the highest bidders. This method yields the largest number of quotes, but puts your information to be out there to be bought and sold repeatedly. Even though you input your basic information, insurers still need to speak to you directly, so you'll be fielding numerous contacts. I've done this before and lost entire afternoons going through the process.
Option 4: Visit the website of a company that compares for you, without selling your information. This is my personal favorite due to the time-savings and privacy offered. A broker or service will shop for you – but supposedly with no bias. This keeps your personal information from being bought and sold, and they'll field quotes for you. PolicyGenius.com is one such Internet-based service that gives you the side-by-side comparisons of companies that fit your criteria. They'll help you understand all the terminology, too. PolicyGenius only offers life insurance, renter's insurance, pet insurance, and disability insurance at this time. Their website says they will soon add more insurance lines and I expect that there will be other sites that follow this model. Consumers tend to like their time and privacy!
No matter what insurance shopping method you choose, let me leave you with the cardinal rule of insurance. Never cancel a policy until you have a new one fully in place and in force.
