How I Shop for the Best Insurance Rate

Insurance is basically a gamble. On both sides. The insurance company gambles when it says, "In exchange for your premium, we promise to cover damages as specified in your policy, even if those damages are more than what you've paid us." And I gamble when I say, "I'll pay you every month on an insurance policy that I might never use."

The difference, of course, is that the insurance company is a large corporation with far greater resources than I have at my disposal. That's why I need them. But if I'm going to gamble my money, I'm going to find the best insurance rate possible.

Friends, Family & Acquaintances

Whenever I decide to change insurance companies, I start my search for the best insurance rate by talking to people I know. I want to hear about their experiences with different companies. Do they feel the rates are reasonable? How much research did they conduct? And what is their overall impression of the company they chose?

I'm not looking for specific numbers at this point. They wouldn't help me anyway because one person's insurance rate has no bearing on that of another person. There are just too many variables. What I'm after is a general consensus about the fairness and accuracy of each insurance company's practices.

Agent Interview

My next step is to meet with insurance agents at each of the companies I've decided to consider. It's true that it's faster to apply for quotes online, but in my experience you don't get the best insurance rate unless you deal with it in person. You can discuss your specific situation, which often yields better results.

I talk to each insurance agent on my list and ask about discounts, insurance bundles, and other factors that might lower the rate. I come prepared with as much documentation as possible, and I try to leave with a written-in-stone quote that I can use for comparison later on.

Comparison Phone Call

Once home, I make a list of all the insurance agents with whom I have spoken, next to which I write each individual insurance rate quote. Then I call each of the agents on the list who have given me higher quotes and I tell them I have a better rate. Are they willing to lower theirs?

Competition is a powerful motivator when it comes to any financial situation. The insurance company wants my business, and I want the best insurance rate possible. So I give the other agents an opportunity to meet their competition's price.

Final Evaluation

The best insurance rate is not the deciding factor on who I choose. I consider other factors, like claims process and customer service and industry reputation. I don't want to pay more than I have to, but I also don't want to get stuck with an agent who will make my life miserable.

With all that information in hand, I can make an educated decision. Sometimes I choose correctly, and sometimes I discover later on that my choice was faulty. Whatever the case, I know I did my best to find the most appropriate insurance company for me.