How Do I Compare My Policy to a New Quote
A lower number on a new quote only means something if the coverage behind it matches what you already have.
Line up the coverage before you look at the price
Pull out your current policy's declarations page and set it next to the new quote. Check that the liability limits match, the deductibles match, and anything you added, like roadside assistance or rental reimbursement, is there in the new quote too. A quote that looks cheaper often is, because it quietly drops a coverage you have now.
Once the coverage lines match, the price comparison means something. If the new quote is still lower with the same limits and the same deductibles, that's a real saving. If it's lower because it dropped your comprehensive coverage or raised your deductible, that's a different decision, not a better price.
Your driving record and any recent changes
A new quote is priced on what the insurer knows about you right now. If you've had a ticket, an accident, or a lapse in coverage since your current policy was written, the new quote reflects that, and your current policy's renewal price will too, usually at the next renewal. So a gap between the two numbers isn't always about which company is cheaper. Sometimes it's about which one has caught up to your record.
Ask the new insurer what they used to price the quote. Did they pull your motor vehicle report, or are they quoting off what you told them. If it's the second, the number can move once they verify it, and you won't know you're comparing a real number to a provisional one.
If you've taken a defensive driving course or had a violation age off your record, make sure both your current insurer and the new one have the updated version. An old record on one side and a current one on the other will throw the comparison off in either direction.
What the quote assumes about your car and your mileage
A new quote asks you for your car's year, make, and model, how you use it, and how far you drive. Your current policy was priced on what you told your insurer when you bought it, which may be out of date if your commute changed or the car has more miles on it now. Compare what each policy has on file, not just what each one charges.
If you've paid off your car since your current policy was written, check whether you're still carrying coverage that was required by a lender. Gap insurance or a higher comprehensive deductible requirement often stays on a policy after the loan is gone, and a new quote might not include it unless you ask for it specifically.
Also check how each policy treats any other drivers in your household. If someone was added or removed since you got your current policy, make sure the new quote reflects the same list of drivers, since that changes the price on both sides.
Questions people ask about this
What does declarations page mean on my insurance policy?
It's the summary page at the front of your policy that lists your coverage types, limits, deductibles, and who's insured. It's the fastest way to see what you actually have without reading the whole policy. If you can't find yours, your insurer can send a copy or you can usually view it by logging into your account online.
Should I tell my current insurer I'm getting other quotes?
You don't have to, but it can work in your favor. Some insurers will review your rate or apply a discount you qualify for once you mention you're shopping, rather than losing you as a customer. There's no downside to asking what they can do before you switch.
Is it bad to switch insurance companies often?
Switching itself doesn't hurt you, but staying with one insurer for a long time sometimes earns a loyalty discount that a new insurer won't match right away. Ask any company you're considering whether they offer one, and how long you'd need to stay to get it.
Will a new insurer honor my current claims-free discount?
That depends on the insurer, so ask directly rather than assuming. Some count years with no claims regardless of which company you were with, and others only count time on their own policies. Bring your claims history or a letter of experience from your current insurer to the conversation.
What is a letter of experience from an insurance company?
It's a document from your current insurer showing your coverage history and whether you've filed claims. A new insurer may ask for one to verify what you've told them, especially if they're deciding whether to honor a claims-free discount. You can request one from your current insurer whether or not you end up switching.
See what a quote looks like next to what you already have.
Get your current declarations page out before you request any new quotes, so you have your real limits and deductibles in front of you. When you get a new quote, ask the insurer to match those same limits rather than taking their default coverage. Ask both your current insurer and the new one how they're treating your driving record, and whether either number might change once they verify it. If gap insurance or a lender requirement is on your current policy, ask whether you still need it before you drop it from a new quote. Request a letter of experience from your current insurer if a new company asks for proof of your claims history. Once the coverage on both sides matches, the price difference is the real comparison.
