Insurance Shopping: Seeking Peace Of Mind

People shop for insurance for a variety of reasons. Some of the most common factors that motivate consumers to shop around for insurance include receiving a discount or promotion from a competitor, getting a new vehicle, moving to a new area, life events such as marriage or a new family member moving in, purchasing a new vehicle, and experiencing personal or financial shifts.

Additionally, consumers may shop around for insurance to ensure they are getting the best price and to discover discounts they may not have been aware of. Shopping around for insurance can help individuals save money, with 76% of people who shopped around for insurance saving at least once.

When shopping for insurance, consumers consider factors such as the reputation of the company, potential discounts available, 24/7 customer service, having a local agent, and online options.

To find a better price or value

People shop for insurance to find a better price or value. This is often the result of a perceived need or want, which can be influenced by various factors such as price, coverage, convenience, and customer service.

Price is a significant factor in an individual's decision to shop for insurance. Many consumers believe that shopping around for insurance can lead to potential savings, and this belief is supported by data. According to a ValuePenguin survey, 76% of consumers who shopped around for insurance saved money at least once. The same survey also revealed that 30% of those who shopped around saved $500 or more during their lifetime.

However, it is important to note that price is not the only factor that determines an individual's insurance shopping behaviour. The convenience of bundling multiple insurance policies with the same provider can also influence their decision. More than half of all policyholders (55%) bundle some of their policies, citing savings and convenience as the main benefits.

In addition to price and convenience, individuals may also seek better value in terms of coverage options and customer service. They may compare insurance providers based on the range of coverage options available, as well as the flexibility and customisation these options offer. For example, individuals may prefer insurance providers that allow them to increase their liability limits or add specific coverage types that suit their unique needs.

Customer service and communication are also important aspects of the value proposition. Some individuals may prefer insurance agents who periodically review their coverage and ensure it is up to date, demonstrating a proactive and caring approach. Lack of communication and poor customer service can lead to customer defection, as people may feel uncertain about the value they are getting for the price they are paying.

In summary, people shop for insurance to find a better price or value, and this decision is influenced by a combination of factors. While price is a significant consideration, individuals also value convenience, coverage options, and customer service when making their insurance choices.

To find a better agent

People may shop for insurance to find a better agent for a variety of reasons. One of the main reasons is that they had a bad experience with their previous agent, such as a lack of communication, high-pressure sales tactics, or poor customer service. A good insurance agent should put the needs of the client first, provide good customer service, and have strong emotional intelligence. They should also be knowledgeable about insurance products, regulations, and the financial situation of their clients.

When looking for a new insurance agent, it is important to check reviews and ask for recommendations. It is also worth considering whether to choose a "captive" agent, who works for a single company, or an independent agent, who can offer policies from multiple providers. Captive agents may have more extensive knowledge of a single company's policies and may receive more training and support, but independent agents can offer a wider range of products and may be better able to find the best policy for an individual client's needs.

Additionally, people may prefer to work with an agent who has a wide array of products to offer, as this can help meet any reasonable need a client might have. The level of energy and persistence that an agent displays can also be important, as a worn-down or dreary disposition may discourage clients from buying anything, and the ability to handle rejection is crucial in this line of work. Honesty and technical knowledge are also vital qualities, as agents who engage in deceptive practices are unlikely to last long in the industry and may even face legal consequences.

Finally, it is worth noting that insurance agents are typically paid on commission, which can range from 7-15% of the term premium. While this does not usually impact the rates paid by the client, it is something to be aware of when considering whether to work with an agent.

To find a better policy

People may shop for insurance to find a better policy. This could be because they had a bad experience with their previous agent, policy, or insurance company. For example, they may have felt that their agent did not communicate with them or review their coverage needs. They may also feel that their previous policy did not offer them good value for money.

When shopping for a better insurance policy, it is important to compare "apples to apples". This means making sure that each quote reflects the same limits and coverage options. To do this effectively, it is recommended to start by matching your previous insurance coverage and then adjusting according to your current needs.

There are several ways to acquire a new insurance policy, including through an insurer's agent, an independent agent, directly from an insurer's website, or by using an online comparison platform. Each method has its own advantages and disadvantages in terms of convenience, price, and coverage flexibility.

When comparing insurance providers, it is worth inquiring about any available discounts. For example, many companies offer discounts for bundling multiple policies together, such as combining home and auto insurance. Other ways to lower your insurance rate include raising your deductible, installing an anti-theft device, maintaining a good credit score, taking a defensive driving course, and paying your premium in full upfront.

By shopping around and comparing different insurance policies, individuals can make informed decisions about their coverage needs and find the best value for their money.

To find a better insurance company

People may shop for insurance to find a better insurance company. This could be because they had a bad experience with their previous company, or simply because they want to see if they can get a better deal.

There are a few steps people can take to find a better insurance company. Firstly, it's important to do your research. Compare multiple insurance companies and their quotes, and don't be afraid to shop around. Look into the company's history and reputation, and check their financial strength to ensure they will be able to pay out claims. It's also a good idea to find out how easy it is to interact with the company, for example, whether they offer online claim reporting or 24/7 customer service.

Another important factor to consider is the insurance company's products and prices. Make sure the company offers appropriate coverage for your personal or business needs at a competitive price. It's worth finding out if there are any discounts available that could reduce your premium.

Finally, don't underestimate the power of referrals. Talk to friends, family, and coworkers about their experiences with different insurance companies. This can give you valuable insights into how a company treats its customers and help you make an informed decision about which provider to choose.

By following these steps, you can increase your chances of finding a better insurance company that meets your needs and provides excellent value.

To insure a new family member

There are many reasons why people shop for insurance, and one of the most common is to insure a new family member. This could be due to a variety of factors, such as:

• A new addition to the family, such as a newborn baby, a newly adopted child, or a foster child. In this case, the parents or guardians would need to add the new family member to their existing insurance policy or purchase a separate policy for them.
• A family member who was previously uninsured or underinsured, such as a young adult who has aged out of their parent's insurance policy and now needs their own coverage.
• A family member who is moving in with the insured individual, such as an elderly parent or a sibling who is temporarily staying while between homes. In these cases, the insured individual would need to update their policy to include the additional family member.
• A change in marital status, such as a marriage or divorce, which would require updating insurance policies to reflect the new family dynamic.

When insuring a new family member, it is important to understand the specific requirements and limitations of insurance policies. For example, some insurance companies may require all family members living in the same household to be listed on the policy, while others may allow for more flexibility. Additionally, the type of insurance, such as health, auto, or life insurance, will also play a role in the specific considerations that need to be made.

Furthermore, it is essential to be aware of any state laws or regulations that may impact insurance coverage for family members. For instance, certain states may have specific definitions of "household members" or "family members" that must be adhered to when purchasing insurance. Understanding these nuances can help individuals make informed decisions about their insurance choices and ensure that their new family member has the necessary coverage.

Frequently asked questions