SACRAMENTO, CA, June 7, 2016 -- California Insurance Commissioner Dave Jones is encouraging Californians to take advantage of the CDI's easy-to-use online tool to help consumers shop and compare rates before buying homeowners, condominium, renters, mobile homes, or earthquake insurance. However, independent insurance agents and brokers are still the best choice for help them find the right price and coverages.
According to Jones, the CDI homeowners insurance comparison tool was designed to take some of the guesswork out of shopping for insurance by allowing consumers to quickly and easily make comparisons of rates from both national and local insurance companies.
While the CDI’s online tool does not provide actual premium quotes, it does provide each company's average premium and a toll-free number and website address for consumers to ask questions about available discounts or credits and receive an actual premium quote. The tool also includes a link to the specific company's performance based on the consumer complaint study.
“The Commissioner is right to encourage consumers to frequently shop to ensure they have the most suitable combination of price and coverage options,” said IIABCal President Craig Williams, “but the best way to do a meaningful search of the marketplace is to use an independent agent or broker.
“As the CDI itself notes, its website lists average rates charged by insurers, not actual price quotes,” Williams said. “And there are potentially very significant differences between and among insurers in terms of coverage options and adequacy, and claims-paying reputations. An independent agent or broker is in the best position to know, explain, and then procure the coverage that consumers need, want, and select.”
Williams said coverage options can vary even with the same carrier.
"Using the dwelling amount, zip code and deductible to get an average price will never replace quoting the proper coverage for the individual who is shopping for coverage," Williams said. "Since carriers often use age, occupation and other personal data when developing a rate for an individual homeowner this tool offered by the commissioner could actually create confusion. Not to mention other eligibility criteria that isn't being considered, like brush mapping that can sometimes vary within the same street."
Commissioner Says Shop Around
"The best coverage decisions are informed ones. Consumers know the large insurers that advertise, but they may not be aware of local insurers who may offer a lower price," said Commissioner Jones. "The online comparison tool helps consumers understand their options and find the coverage and features offering the best protection and cost to meet their needs. Often, it pays to shop around."
Consumers enter their county and nearest city, type and amount of coverage, and age of the home to compare estimated premiums. Homeowners should compare prices for various insurers along with the coverage features, limits, and exclusions.
Using this tool, a couple in Sacramento shopping to insure their apartment with a $35,000 renter insurance coverage plan and a $250 deductible might find their premium options range from $125 to $583, with an average price of $307. Compare this to a family in Folsom shopping to insure their 15 year-old home with a $400,000 homeowner insurance coverage plan and a $1,000 deductible who might find their premium options range from $663 to $2,095, with an average price of $1,145.
Homeowner Insurance Rate Comparison Tool
Homeowners Insurance Rate Comparison Infographic