Should you get car insurance where you buy your eggs?
If you are customer of a members-only shopping center such as Costco, you may have noticed that your store offers insurance (most likely auto insurance, but possibly other types including home insurance) – and your reaction was probably something like, “should I buy insurance at the same place I buy milk?”
Well, there a few things to consider. First of all, you need to determine whether or not your membership offers any kinds of discounts or loyalty rewards that you can receive if you decide to purchase insurance through your store’s program.
Secondly, you’ll need to determine if – even with possible discounts and/or loyalty rewards thrown in – you are getting great coverage at a great rate. As we always recommend, comparing rates from a variety of insurance companies is the best way to go.
Finally, since Costco and other stores do not underwrite insurance policies, it is important to know exactly which insurance company will be providing your policy – and to understand the rating, reputation and service quality of that company.
If you are confident that you have received a competitive rate from a quality insurance company, purchasing an insurance policy from the place where you buy your ice cream and steaks may be a sensible option, especially if you can also receive discounts and/or loyalty points or rewards for doing so.
Just remember to bring home the milk as well.
January 18, 2012