How to Shop for the Best Insurance Rate

I've found that, when shopping for insurance, a methodical approach works best. I set aside a few days to shop for the best insurance rate, and those days are dedicated to digging up as much information as possible. I record every quote and every answered question, and then I look at the hard data.

Get as Big a Sample as Possible

You can't shop for the best insurance rate if you only contact the first five companies that come to mind. Sometimes the better deals are found in the smaller insurers whose commercials aren't plastered all over your television screen. Even if they aren't, at least you've overturned every rock.

I'm always asking friends and family members for recommendations on insurance products. This is one of the best ways to find the diamond in the rough, to discover the best insurance rates without resorting to the Yellow Pages. A recommendation from a family member or friend can eliminate hours of research.

Meet Every Insurer Face-to-Face

It's almost impossible to shop for the best insurance rate if you're calling companies over the phone or, worse, obtaining quotes online. In both cases, you're going to get the most generic quote possible, one that fits the basic level of information you've provided.

The telephone isn't a terrible way to get an insurance quote, as long as you're talking to your potential agent rather than simply a nameless customer service representative. But face-to-face is better.

When you meet with your potential insurance agent face-to-face, you've got his or her full attention. You can ask all the questions you want, discuss as many plan types as possible, and work toward the best insurance rate he or she can offer.

Keep a Spreadsheet

I find it easiest to make decisions when the data is laid out in front of me, point by point, where I can compare different insurance companies. You might find a different method that works best for you, but the idea is to see, in black and white, how the insurance companies compare to one another.

Remember that the best insurance rate is not always the lowest insurance rate. You will want to give weight to customer service, ease of the claims process, geographic desirability-in other words, qualities that can't be quantified. A spreadsheet will help you evaluate more than just price.

Continue Evaluating

More than once, I've purchased insurance through a particular company and dropped coverage within a few months. I'll have a bad experience with my agent or find another company that I think will serve my needs better. Don't think that just because you've purchased insurance means your locked in for life.

You might want to consider contacting an agency writer, as MSN Money suggests, or perhaps you get a flyer in the mail that looks appealing. Don't switch at the drop of a hat, but continue evaluating options.

Take time to shop for the best insurance rate, but keep your eyes peeled beyond that decision. Check into companies or agents about whom you've heard good things, and remember that the insurance company wants your business just as much as you need insurance coverage.