Preset Coverage Bundles or a Policy Built Line by Line?

Packages go by many names: tiers, bundles, levels, plans. Underneath, each is a set of ordinary coverages sold together, sometimes with an extra feature added. That is fine. The difficulty is comparing a bundle against a policy someone built for you, because the two arrive in different shapes.

Step one: unpack the package

Ask for the package as a list of coverages with their limits and deductibles, exactly as they would appear on the declarations page. Then lay it beside the built quote.

The Department of Insurance's glossary is a useful check on what each line means: rental reimbursement is sold as a daily amount up to a maximum, towing pays a specified amount, and an additional equipment endorsement is capped at the limit on the endorsement. Two packages can both list a line and set it very differently.

Step two: decide what each extra is worth to you

Every line in the package falls into one of three groups:

• Extras you would buy anyway. Add the same line to quote B so the comparison is fair.
• Extras you would never use. They are worth nothing to you, however they are described. Do not let them make the package look generous.
• Lines the package leaves out. Ask whether they can be added, at what price, and add that to the package's cost.

Step three: check the package's rules

Package-only features, such as a deductible that changes over time or a forgiveness feature, are company-specific. Before giving them any value, ask:

1. What exactly triggers the feature, and what ends it?
2. Can one component be removed if you do not want it, and does the price change?
3. Does the package's content stay the same at renewal, or can the company revise it?
4. Does anything in the package carry over if you move to another company? There is no reason to assume it does.

A short example

Package A includes rental reimbursement, towing and a $500 collision deductible. Built quote B has a $1,000 collision deductible and no rental. To compare fairly, ask B's company for a version with a $500 deductible and rental at a similar daily amount and cap, or ask A's company what the package costs without the rental. Either way, you end up comparing the same coverage, and the difference that remains is the real one.

When a package genuinely helps

A package can be the right choice. It is quick, it is hard to forget a line, and if its contents match what you would have chosen, the comparison is simple. It becomes a problem only when the lowest tier is built near the legal minimums and the step up adds several things at once, so you cannot buy the one improvement you want without paying for three you do not.

The comparison line

After unpacking, write two figures for each offer: the price as offered, and the price adjusted to the coverage you actually want. The second figure is the one to compare. If you would like both versions prepared for you, ask through our quote form for a quote built line by line to match the package you were offered.