4 reasons I get insurance quotes every year

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Every year, I take the time to get new home and auto insurance quotes. It only takes 30-45 minutes to go through this process, and I think it’s worth it to help keep my personal finances in order.

Here are four big reasons I think the time and effort I spend looking for insurance pays off.

1. My insurer might charge me more if I don’t shop

Insurance companies engage in price optimization and actually have algorithms to determine who is likely to compare price offers.

Policyholders who, according to the insurer, are unlikely to change companies based on price end up being billed more in many situations. I don’t want to be penalized for inaction, so I make sure to shop around and confirm that my insurer isn’t charging me more than they should for the coverage I have.

2. New insurance coverage options may have become available.

The insurance market is not stagnating. New companies are entering the market or existing companies are changing their offerings. What was once the cheapest insurance company may no longer offer the best price over time. Different insurers may also offer new and different types of protection that I want to take advantage of, but I can only find out if I shop around and explore what is out there.

3. I want to be sure I pay the lowest price

It is important for me to have comprehensive insurance coverage in order to protect my assets. As a result, I am purchasing more insurance than necessary. I also have several insurance policies because we have two houses, a commercial property and two vehicles. So I spend a lot of money on insurance premiums every year.

I don’t want to spend more than I need to get the coverage I need, so I get quotes every year because I want to make sure I’m paying the most affordable price possible for my policies, without compromising on quality.

I can only do this by regularly comparing prices to see what different insurance companies will charge me for the coverage I need. I also know that changes in my life like aging can impact my prices, and different companies can charge more or less for people of different demographic groups.

4. It gives me the opportunity to reassess my coverage needs

When I receive insurance quotes, I must specify the exact amount of coverage I want as well as the types of insurance I want to purchase.

This forces me to reassess my coverage needs and make sure I don’t have too much or too little coverage. I can also think about what I want my deductible to be, based on the amount of money in my emergency fund as well as the risk of something going wrong in the year ahead.

Ultimately, looking for home and auto insurance quotes every year helps make sure I’m not overpaying, having too much or too little coverage, and working with an insurer that wins my business. I only have to do this once every 12 months, and the money it saved and the peace of mind the process provides are well worth the minimal effort.


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