Is price all that matters when I'm buying insurance?

Is price all that matters when I'm buying insurance?

Sam Friedman (Editor-in-Chief, National Underwriter, Property & Casualty Edition) gives expert video advice on: Do I need insurance?; How much insurance do I need? and more...

Price is very important when buying insurance. Everybody always wants to get something as cheaply as they can. But price is certainly not the only consideration in buying insurance. You'll want to make sure that the company's going to be there to pay the claim when you have one, so it's important to ask your agent about the financial stability of the carriers that they're placing you with. You also want to make sure that it's a service-friendly company. You can ask around with friends and neighbors if they've had experience with that insurer--whether their claim was paid on time; did they respond to any inquiries you have about your coverage in a timely fashion? Etc. All that goes into part of the insurance package, as well as price. It's great to have the cheapest coverage that you can get. But, you don't want to scrimp on coverage and then wind up having more trouble than you should be down the road when you need the insurer to make you whole again.