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Two quotes for the same thing rarely describe the same cover. Before comparing the prices, make the policies comparable.
1. Read the exclusions first
The exclusions define the policy. Everything else describes what it does in the cases the exclusions have not already removed. It is the shortest section and the most informative one.
2. Line up the limits, not the premiums
Check that both quotes carry the same:
- Per-claim limit and annual aggregate
- Sub-limits for specific categories — valuables, glass, business equipment
- Liability limit
A cheaper quote is often a smaller quote wearing the same name.
3. Find the deductible for each section
Policies frequently carry different deductibles for different parts: one for theft, another for water damage, a third for glass. Compare the whole set.
4. Work out what the discounts require
Discounts are conditions. A discount for an alarm requires the alarm to be set. A discount for low mileage requires the mileage to stay low. If a condition is not met, the discount is not the only thing at risk.
A discount you cannot comply with is a claim you cannot make. Decline it and pay the difference.
5. Ask what happens at renewal
Introductory pricing is common. Ask what the second-year premium looks like on the insurer’s standard rates, and whether any discount applied is first-year only.
Then compare prices
Once both quotes cover the same things at the same limits with the same deductibles and the same conditions, the price difference is real and you can act on it. Before that point it is not a comparison, it is two different products with two different numbers.
A note on advice
This is a way of reading quotes, not a recommendation about which cover suits you. What is right depends on what you own, what you owe and what you could absorb yourself — which is a conversation with an adviser who can see all three.
