PRICING - Are You Getting a Good Deal?

When you call an agent about insurance, you probably wonder about the cost of the policy that you might need. Am I paying too much? Did I get the correct coverage? Am I being quoted on the same basis? It's enough to make you crazy.

Assuming that you are being quoted on the same coverage, you need to know if the price is fair. You will note that I said fair.

Insurance is a highly competitive business. There are literally thousands of insurance companies, competing for your business. If you select a good agent, you will be placed with a good insurance company. Insurers must price their products to be "in the ball park" or they will lose market-share.

My experience (now over 30 years) has been that sometimes the price you pay maybe lower than most other companies or maybe higher or about average. But well run, financially solid companies do not stray from giving you good value.

There is an exception to this. Sometimes a company will want to lower the number of policies in a certain area. This happens because of bad experience like too many customers near the coast. So it will raise its prices and drive some customers away.