Getting a California Home Insurance Quote
When the time comes to buy a home - be it an investment property or personal residence - there are several pieces of advice that will help you save a great deal of money over the years.
First, it is important to know how to get quotes done both online and through a direct call. Following that, comparisons of the companies, policies, and reviews of the services offered need to be checked.
Third, it's always wise to see if a discount can be received. And, lastly, reviewing policies over the years can lead to surprising revelations.
Be sure to compare quotes using the FREE comparison tool above to start your search!
Where to Get Quotes
When it comes to getting quotes, more is better. It is not uncommon for a consumer to call an agent, be given a price, and simple take it. The problem with this is that there are some agents who know that if they can close the deal skillfully they will get you to sign with them before you make other comparisons.
This happens because you are very busy and have a dozen other things to do. However, among all of the tasks on your to-do list should be "saving money."
You can save money by having a handful of quotes at the ready when you call the agent. This can be done by going to several sites of insurers who can quote you in California and then type in the information you have, such as the value of your home, the specs, and location.
From there, you can see if the online quotes are accurate by calling agents from each company and seeing what happens.
The truth is that the agents should have the same or similar numbers to the site unless they are including or omitting something, or if you made a mistake, such as typing in the wrong zip code or "fat fingering" the number of bathrooms in the home. An example of this is if you have 3 bathrooms and you accidentally punch in 36 bathrooms.
When you have suitable quotes, it will be time to make comparisons.
Comparing Companies, Policies, and Reviews
Once you have narrowed down the quotes to a few companies you want to go with the next step is to compare them.
For example, Insurer A may be owned by someone you know. This relationship will certainly weigh in on your decision. Insurer B may have the best price, which is certainly influential depending on the savings. And Insurer C may have the lowest deductible when it comes to earthquakes.
If all of the policies are the same, meaning that they offer the same coverage but with different details, then the next step is to go forward and research how customers have fared with them. Naturally, it will be easy to find negative reviews, which are not a bad thing, but the lack of positive reviews is not a bad thing, either.
If you think about it, who posts positive reviews about their insurance company? Almost no one. But who posts negative reviews when something has gone wrong? A higher percentage.
This will allow you to see something that the company will not reveal until it is too late, such as if it does not treat customers well who are in difficult positions. If this ever happens to you, you can contact a state advocate to assist you through the matter.
Once you have reviewed the companies, quotes and policies, as well as the customer services reviews, the next step is to see how you can save more money. There are several different ways to save money on insurance.
What kinds of discounts can you get?
Over the years there are changes that take place in the insurance market that are easily going unnoticed.
For example, term life insurance has become so competitive over the last five years that many people are finding that even though they are five years older they can pay lower premiums on a brand new 20-year policy.
When it comes to homeowners insurance, the same thing may be occurring, be it for your typical policy or a supplemental policy, like flood insurance.
Beyond price fluctuations, though, there are other ways to save money. This can be done by combining all of your insurance policies under the umbrella of one company, seeking special programs that cater to a group you fall within, such as being a veteran, senior citizen, or member of a buying group, or raising your deductible.
Combining Policies: Some people are not aware of this, but your insurance company will reward you for increasing the amount of business you give them.
This means that if you combine your auto, homeowners, and other policies with them, they will provide the same protection you currently have at a discounted price. The benefit to you is obvious, but if you are wondering why they would do this, it is because they benefit, as well.
The extra premiums you pay them increase their top line (revenue), which means they have more income. Just as other businesses have incentives to keep you coming back, insurance agencies can do the same.
Group Discounts: If you are part of a special class of people, such as the brave men and women who have defended our nation, then you may be offered a discount for your business. The same goes for senior citizens who have a proven track record of safe driving and those who purchase products and services through buying groups.
The way the latter works is that when people get insurance through a group plan, such as a union, networking organization, or their employer, the rates are reduced as a means of showing appreciation to the group's buying power.
It's not different than if forty people got together and offered their business to a car dealership. This group can get a better deal for every single person than any one of them could get individually, and it is because when people work together, or have buying power through association, there is a lot of money to be saved (for the consumer) and to be made (for the business). Some call this concept presuming.
All of this can make the difference between overspending thousands of dollars on insurance, or using that money for other things, like retirement savings or upgrading your home.
Reviewing Policies - Starting the Process Over Again
If this process seems like a long one it may be discouraging to think that it is not over. It can be, but there's still more money to save, and ignoring this next step could be like walking down the street and stepping over a $100 bill, but without the benefit of knowing you left it behind for someone else to pick up.
After you are in your home for a few years it is wise to get some online and over-the-phone quotes. The comparisons you get may surprise you, and the reason for that is because industries change over the years, and it is possible you may be stuck with a policy that is outdated, or even irrelevant.
For instance, you may have originally bought your policy on a home that is much bigger than the one you currently occupy. After moving in you updated your records at the insurance company but they may have neglected to adjust your policy.
As it stands, you are now insuring a small ranch in El Dorado county as though it was a large beach house in Orange. While the agent should have been on top of this, you need to always have it in the front of your mind that no one is going to care as much about your finances as you, and while you have one or two properties to consider, your agent has hundreds, if not thousands.
The important takeaways here are to remember that it is very easy to get a wide variety of quotes. A good system is to get them online and then make some phone calls to agents at those companies.
When comparing the pros and cons of the agencies the initial price is not the only factor. There are relationships, deductibles, and making sure that equal policies are being compared.
Once those baseline measurements are handled, the next step is to see how your quote can be adjusted based on what kind of discounts you can get. If an agency will not discount your policy for your loyalty to them, then they may not be worthy of your business. Additionally, if it means a lot to you to be recognized for being a member of a certain group, like the US Armed Forces, then you need to consider how they honor that.
And when it is all said and done, you must be diligent and give the policies a fair look every few years. It will only take an hour at most, but the savings can last for years.
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