How to choose between different insurance quotes?

[Oren H.]

While shopping for insurance, I got quotes from different insurance providers. As far as I can tell, these offerings are pretty similar (same coverages, same deductibles, both replacement cost, both has loss of use, etc.) but the price differences between different providers can be significant (as an example, I have one quote from Safeco for over $1480 and one from National General for $1280, a $200 difference).

I have also tried to research the company itself, but found that all insurance providers receive very low reviews.

When I shop for insurance, I mostly want to be protected from big risks -- liability, fire, etc. -- and I want a company that will be there if/when I actually need it.

Should I just ensure I have the basic protections and go with the cheapest quote? Are there major differences between insurance providers that might justify going with a more expensive options even if the coverages are more or less the same? What else do you look at when comparing quotes from different providers?

Thanks a lot for the help!

[Tim Puffer]

@Oren H. - Here are the important factors - Is the agent you're working with knowledgeable? What is their claims handling process? 

The big differences between companies are going to be specifically in the language of the policy (devil is in the details). You may want to ask specifically what the policy DOES NOT cover. 

Generally insurance companies receive low ratings because people can get slimy, arrogant, don't know what they are doing insurance agents. Or, they get upset when the insurance company didn't fully replace their 30 year old roof with a brand new one... Insurance is there to indemnify you to the position you were in PRIOR to the loss occurring. Depreciation, condition of the property pre-loss, and other factors are part of the equation in determining what to pay on a loss. Much like you are not going to pay market value for a home that needs a complete re-hab done on it - I would hope you wouldn't anyway! :)

Hope that helps!