In the Long Run, Is it worth it to change Insurance Companies?

Dec 7, 2018

  1. lifeismylife76
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    lifeismylife76 Expert

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    I have had my house for 10 years now. Almost 8 of those years with the same company. In the end, is it worth it to change to save a few bucks? The longer I've owned the property, the more likely something is to happen. I've been lucky so far! Any advice, just plain old fashioned good advice, NOT you want to make money off me advice. Capice???
     
  2. Newby
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    With any insurance that is just a month to month purchase (it doesn’t build up any cash value or anything the longer you stay in it) I look at it every two or three years or so.

    I basically shop it to see where it sits as far as competitiveness. And just treat it like if you didn’t own any of them, is that the one you would buy today?

    I go through a local brokerage for my P&C so very easy to shop it. I have them do it. Just call them up and say Hey I have another P&C agent wanting to shoot me some quotes. Made me think that we haven’t shopped my rates in a while. Take a look to make sure I’m still where I need to be.

    That way he does all the work. And he knows I don’t live on an island and he has competition. But I have stayed with the same P&C guy for the past 25 years or so. Different companies though. I had State Farm for 15 years and fired them after they pulled several stupid moves.
     
    Newby, Dec 7, 2018
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  3. marc82much
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    marc82much Super Genius

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    I do not think this is true. Your chance of "something happening" tomorrow are roughly the same as today, or the day after tomorrow.
     
    Last edited: Dec 7, 2018
  4. fed up
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    fed up Super Genius

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    The question to ask yourself is How would my current insurer react to a claim vs a company I have just signed up with? An 8 year history with no claims vs a new company with less than a year of coverage and a major claim? Is the claim going to trigger a threshold where you would be non-renewed? Was the $200 savings worth not being able to get insurance?
     
    fed up, Dec 7, 2018
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  5. shonceman
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    shonceman Guru

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    I've had the same homeowner's and auto insurance since first moving to this state. They're definitely on the high side of rates, but I'm very loyal to them. Early in our relationship, I had about 4 claims with them in just a few months, two homeowner's and two auto. On the last (and most expensive) claim I was positive they would non-renew me, as I'm sure many companies would have. To the contrary, they didn't drop me or even raise my rates! They were so great about the way they handled those claims (and a couple others I've had since then) that I can't see a good reason to leave them. Price is definitely not everything!
     
  6. adjusterjack
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    adjusterjack Guru

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    I'm retired so I'm not going to be making any money off this advice.

    Homeowners rates are not as volatile as auto insurance rates so it's best to stay put with the same insurance company as long as your rates are consistent and reasonably competitive. So, no, it's not a good idea to change companies to save just "a few bucks."

    Insurance companies are more likely to forgive a claim if you've been insured there for a few years. No guarantees, of course, and depends on the kind of claim.

    It never hurts to check rates with other companies every year just to see what's available. If there is more than $100 difference for the same coverage with a reputable company, then maybe it's time to move if that's your only concern.

    I probably wouldn't. My insurance company paid a $12,000 windstorm claim a few years ago. Not only didn't my rates go up, but I got a "new roof" discount.

    Also keep in mind that you often get discounts for keeping your car and home insurance with the same company so I'd be looking at the auto rates first and then see what kind of additional discount you get by moving the homeowners insurance.
     
  7. Markthebroker
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    Markthebroker Guru

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    That statements does not hold water. Not from a mathematical point of view, insurance, physical, not in any way. Overall the way insurance companies look at claims, the longer it's been since you've had a claim, the less likely you are to have one. So, it's basically the opposite.

    Yes. They are not a dog, a friend, or a wife. Longevity and loyalty don't make much difference to them. You are just a number on a spreadsheet. As long as you are looking at good companies, you should go with the one that covers you properly and has the best price. You may have a few discounts for staying with them a while, but there is a fair change another carrier has a better price, loyalty discounts or no.

    Home and auto policies are small enough, I don't even write them any more.
     
  8. EugeneM
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    EugeneM Guru

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    agreed with Mark you are just a number on a spreadsheet might as well shop. Even on huge commercial accounts if you dont fit the criteria you are basically a sack of potatoes. I would not expect loyalty for a tiny personal lines policy.
     
    Last edited: Dec 10, 2018
    EugeneM, Dec 10, 2018
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  9. Weedlebug
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    Weedlebug Expert

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    I agree with Mark and EugeneM!

    We are all just fish in the sea, some bigger then others. Our business is worth something to someone, but is that someone worth doing business with.

    You need to be with an agent who will explain what will happen to your policy if you file that claim.

    A property claim will always impact your policy, if not let's discuss it.

    An auto claim, your at fault will also have an impact in your policy. Again, if not, let's discuss it.

    I have a company that will provide/cover emergancy service, even though the claim was denied. Then turn around and cancel the policy for frequency of claims.
     
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