Coverage/Price Comparison

5/31/2017


The coverage/price comparison compares your auto and/or home policy to those of other Bnie users. The horizontal or x-axis gives you a measure of how much coverage you have (left = less than other Bnie users) while the vertical or y-axis shows you how much you pay in premium compared to other users (top = you pay more). So broadly speaking, top left is generally not a great place to be and bottom right is likely good. Technically, both axes are percentiles, so if you pay more than 90% of other Bnie users (and less than 10%), you'll be 90% of the way up the chart.

What do we mean by coverage? For home policies, we estimate the amount of fire coverage for the dwelling (often called Coverage A) per square foot of your house. Low isn't necessarily bad, especially if you have a simple, less expensive house in a low cost part of the country, but many people don't buy enough coverage to rebuild their house. For auto policies, we look at the per person limit for bodily injury coverage that provides liability protection if you hurt someone else in an accident. A small minority of auto policies don't have bodily injury coverage and the chart will not work for them.  What do we mean by price? For home policies, we look at your annual premium per 1,000 square feet of your house for consistency with how we view coverage. For auto policies, we look at annualized premium per vehicle.

We make a number of proprietary adjustments to your data and that of other users to try and make the information as representative as possible, including the other Bnie users who we use to compare your information against. As an example, if you don't buy auto comprehensive and collision coverage (an auto liability only policy), your premium is likely to be less and we therefore compare your information against prices for policies without these coverages. We spend a lot of time looking at insurance policies and while we don't think any one 'are you getting a good deal' chart can ever capture it all (if you're a risky driver with a high performance expensive vehicle you can expect to pay an above average premium), we are constantly surprised by annualized premiums that just seem a lot higher than average for no obvious reason.

If information isn't shown, it means we don't have enough data for you, which you can fix by making adjustments in MyInfo, and then running a fresh set of ideas.

Your premium and other data in MyInfo is used in the chart.  However the reference data against which it is compared is derived only from documents and other sources where we can independently validate its accuracy.  There are two versions of the chart, a simpler AmIOverpaying.com version that allows user input and the more sophisticated version that is based on data in MyInfo.

 


Other articles:
Coverage/Price Comparison
Auto other coverages
Qualified annuity
Qualified Longevity Annuity Contract
Insurance Games
What's In My Policy - Homeowners
Shopping with the right sellers
Auto liability
Bodily injury liability
Property damage liability

more