Insurance shopping advice often focuses on finding the cheapest price. Do you know what trade off you are making to get the cheapest price? Finding the cheapest insurance can leave you with unintended coverage gaps or poor customer service. If you are like most people, you want good coverage without paying more than you need to. So, understanding how insurance companies calculate your price can help you get the best price for the coverage and level of service you want.
How do insurance companies calculate your price?
Insurance companies use many different variables when calculating your homeowners insurance premium—some pricing variables are within your control and some are not.
1. Pricing elements you cannot change:
2. Pricing elements somewhat within your control:
3. Pricing elements you select:
Insurance companies offer a variety of discounts as well such as paid-in-full, good student or accident-free discounts. Your independent agent can help you find the right coverages, limits, and any discounts to meet your needs.