How to Be a Smart Insurance Shopper: The Price Might Be Right, But the Coverage Might Not Be

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So 2026 is in full swing. And, boy, are we swinging. We're finally going to eat better, exercise more, save more, spend less, and while we are at it, there has to be less expensive insurance out there.

Insurance shopping is one of those adult tasks that sits in the same category as changing the furnace filter, replacing the battery in the smoke detector (by the way, do that) or putting into action all the information from those self-help books you've read.

Insurance always tops the chart of places people think they can save money. I mean, we paid money and didn't get any back — surely there's a better way.

Here is how to shop for insurance and how to shop right (yes, there's a difference).

Sometimes it seems that shopping for insurance is overwhelming for many people. But you can do it. You have access to Google and ChatGPT. You know what you need, what you want and what you want to pay (which is usually as little as possible).

A good insurance agent or broker earns their keep

Let's assume you've already started shopping and noticed that not every place you call or check is even offering new policies. How odd.

Or you find out they have underwriting standards — as in, they want you to take some responsibility and do things to prevent loss, not just prepay for a loss that might already be en route.

Here's where a good insurance agent or broker shines. A good agent doesn't just spit out a price. They help you understand how coverages differ, where gaps might be hiding and how your unique risks should be addressed. That's something a website quote generator can't do.

Agents and brokers don't have to do all that, but the ones who do are worth their weight in gold.

Turns out, most people like to buy insurance from people. They value the opinions and expertise of people who are — wait for it — licensed, trained and experienced in insurance policies.

In fact, research shows that while many people will research insurance online, only about one-quarter of consumers end up buying a policy online without first interacting with an agent or broker, and the majority like to talk with a person when they make the final decision.

Another way to interpret that: People want answers, not just quotes. They want someone who can say "yes, this covers that" and "no, that gap could cost you big-time," instead of merely presenting a checkbox that says "optional."

Complexity matters

Insurance is complicated, and when you are committing your financial security to a contract you hope you never use, that complexity matters.

If every policy were the same, and every company handled claims the same way, sticking with your current insurer would make sense. Unfortunately, that is not how reality works.

We all know someone who waited too long to report a claim and got blown off because the service was terrible. Or someone whose policy looked fine, and then they had a loss and discovered gaps they hadn't realized were there. Those experiences make people angry, and I get it. But the onus is on the consumer.

But here's the twist: Many of those situations could have been avoided if a good agent had been standing between the policyholder and the carrier.

A good agent doesn't disappear after the policy is sold. They help you understand why certain coverages matter and how carrier service differs and what the limitations and exclusions actually mean. You kinda want that info, no?

A policy with a low price but bad service is like buying a cheap suitcase for a round-the-world trip. It looks fine in the store, but as soon as it's put into use, everything inside ends up on the conveyor belt. Heck of an image, eh?

It's not only about the price

People often focus on price because it's the easiest number to compare. But a misplaced emphasis on price without context is like deciding a book can't be good because it doesn't have enough pages, instead of actually reading it first. A lower premium can mean lower coverage, tighter restrictions or less help when you need it.

Have you ever heard the phrase "you get what you pay for"?

Most carriers will tell you they handle claims fairly. Most consumers will tell you that having someone to advocate for them when a claim happens makes all the difference.

When you buy insurance, you are buying something you hope you never use. That makes the service component — how quickly you get answers, how well your questions are explained, how claims are handled — intrinsically part of the product. A big part.

And that ongoing service is precisely why so many consumers still choose to talk with an agent rather than finish the purchase entirely online.

One of the funny (unfortunate?) things about human behavior is that we often change only after we experience pain. People don't switch carriers because they are inspired. They switch because they are upset.

That's backward logic when it comes to something as important as insurance. And it is also tougher to find another insurer right after you've suffered a loss.

Shop for insurance, sure. But shop intelligently and not by price and search engines alone.

Want to learn more about insurance? Visit icgs.org.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.