Why am hesitant to switch insurance companies?

[corn18]

I have been with USAA since 1984. Never used another insurance company for anything. Never had an issue, but haven't made a lot of claims, either. So I went shopping around and found that other companies can save me money. The icing on the cake is I will get a $9,700 check from USAA from my Subscriber Savings Account if I leave them. So why am I so hesitant to make the switch? Seems like a financial no brainer.

 

[braumeister]

A few others here have said the same, so you're probably on the right track. It hasn't been the case for me, though. Every time I've shopped around, I've never found anyone who could even come close to the rates I pay USAA for the same coverage. But insurance seems to be very specifically tied to your location so I guess that's the important factor.

 

[Dash man]

I have been with USAA since 1984. Never used another insurance company for anything. Never had an issue, but haven't made a lot of claims, either. So I went shopping around and found that other companies can save me money. The icing on the cake is I will get a $9,700 check from USAA from my Subscriber Savings Account if I leave them. So why am I so hesitant to make the switch? Seems like a financial no brainer.

I’ve been with USAA since 1982. I’ve had some insurance with other companies when USAA wouldn’t cover homes in hurricane prone areas. As soon as USAA opened up coverage for my Florida beach condo I switched. It’s not always about price, but about them being there when you need them. For the few claims I’ve had, USAA has been great. With other insurance companies it was always a hunt for someone new when the previous one dropped or changed coverage for whatever reason. Even though I never had a claim through them.
It’s not unusual for companies to offer lower quotes, but they may increase it at the first renewal. I’ve known a few people that have tried it.
You also need to verify the quotes are for the same coverage. Compare the policy documents.

 

[Midpack]

I was with Liberty Mutual home and auto for about 40 years, and I didn't compare rates. I found a much lower rate and called to complain (vigorously) and they lowered my rates on home and auto without changing coverage. After that I got quotes annually and they stayed competitive for a few years, but then I got better rates from Geico. Fool me once shame on you, fool be twice shame on me - so I switched to Geico. Ironically, they subbed out my home insurance to Liberty Mutual - at a better rate than I was getting from LM? I have no regrets in switching, we're all just customers/liabilities to them. And I will shop around annually from now on.

[I'm eligible for USAA and I have gotten quotes from them twice, not quite competitive either time or I would switch. I also got quotes from Amica as they seem to be the best, but their rates were quite a bit higher...]

 

[brett]

I had our home insured with the same company for four years. Then a renewal hit. A 24 percent or so increase.

I shopped around. Then I went my insurers on line quote system. Input the exact same data. Guess what? The on line quote was the same as my old rate.

So I called them up. The best that they could say was 'oh well you got a quote on a different system...for new customers'. No problem, I told them to cancel my insurance on the day the present policy expired and sign me up as a 'new' customer at the lower premium.

They reluctantly agreed but I had to be somewhat insistent.

This was a very common practice in the UK. My understanding is that the UK has passed legislation or regulations to prevent this type of discriminatory pricing.

 

[braumeister]

I have been with USAA since 1984.

One other factor is that in a couple of years you'll start getting a big chunk of that back every year in the "Senior Bonus" for 40+ year members.

 

[Scuba]

I’m not eligible for USAA but have heard wonderful things about their claims processing from people who have it. If I could buy it, I would.

 

[COcheesehead]

I shop my insurance using an independent broker every renewal and end up switching about every two years - always for a savings. Loyalty in insurance is rarely rewarded.

 

[ivinsfan]

We've been FB insurance customers for 40 years. We have a C Corp and two different families and various types of ownership and even the two couples will drive the others vehicle if the need arises. Have to insure 3 different farm sites and buy an umbrella. Could we maybe do better on price? Perhaps, would we have the exact same coverage and flexability, hard to say.

In 40 years of course we had claims ranging from windstorm damage twice to a combine fire and so on. Never had a minutes problem on any claim. Had a big local windstorm and the local coop mutal insurance acted like the money was coming out of their own pockets and I guess it was...

The 2 owners are now 73 and 62 and peace of mind is worth something.

If you switch first of all make sure it's not a teaser rate...

 

[COcheesehead]

The teaser rate is exactly what you are trying to take advantage of. The new customer usually gets a better deal. So always try and be the new customer. LOL.

 

[ivinsfan]

The teaser rate is exactly what you are trying to take advantage of. The new customer usually gets a better deal. So always try and be the new customer. LOL.

I disagree teaser rate put your long term done right by you insurance company at a disadvantage. I'm not a person that's going to shop insurance every year. All insurance companies are not created equal

 

[corn18]

I am smart enough to match coverage when comparing rates. It takes a lot of work on the phone to get them to match my USAA coverage so I can do an apples to apples. I carry max coverage on everything and so far, only State Farm has been able to beat USAA at same coverage. Amica looked great until I made them match the USAA coverage I have and then they are way more expensive.


I got the name of an independent broker that my friend uses that he really likes. I'll give him a call tomorrow and see what he says.

 

[COcheesehead]

I disagree teaser rate put your long term done right by you insurance company at a disadvantage. I'm not a person that's going to shop insurance every year. All insurance companies are not created equal

Insurance companies even encourage it. Look at all the advertising they do to get you to switch.

 

[ivinsfan]

Insurance companies even encourage it. Look at all the advertising they do to get you to switch.

Now that you mention it I've never seen a Farm bureau insurance tv add. Maybe SF could take their Rogers and Mahomes money and lower their rates

 

[MrsHaloFIRE]

I hesitant to leave USAA bc I know they pay. 3 roofs in 3 years between 2 properties. 1 was a hugely expensive metal one with just hail dents. Will immensely help resale. Gutters too. Take my premium money.

 

[athena53]

I am smart enough to match coverage when comparing rates. It takes a lot of work on the phone to get them to match my USAA coverage so I can do an apples to apples.

And you MUST do this. Some of the more competitive companies don't use standard policy forms so they whittle away coverage that you don't know about till you need it (e.g. you loan your car out to an uninsured friend who in turn lets someone else who's uninsured drive it and they injure someone in a wreck). A friend was pretty happy at the money she saved on her Homeowners insurance- till tree roots grew into their sewer line and they had to pay $20,000 to repair it. The old policy would have paid $5,000. Their "bargain" policy paid nothing.

Note also that it's not like the cable company where they're free to throw you a discount if you threaten to leave. They are strictly regulated and must justify their rate structure to the regulators. I'm guessing that when Midpack did this she was put into a different underwriting "tier" with lower rates based on their perception that she was less risky than average. The criteria are usually pretty objective. I once dropped physical damage coverage on an older car and saved less than the cost of the dropped coverage- because I was moved to a riskier tier and my Liability premiums increased. I was not happy.

 

[travelover]

I don't understand the $9700 payout, but USAA and Amica are consistently rated top companies. Maybe take the money and switch to another top rated company?

 

[Chuckanut]

With insurance it's not just a matter of price. It's also a matter of how good the service is. I found that out when my 2012 Camry was hit while parked. The guy at fault had a lousy insurance company. And he was under insured. My company and agent didn't seem to give a hoot. The car spent about a month in limbo before anybody at either company got around to assessing the damage and offering me a settlement.

If they can't handle a simple parking lot accident where fault is clearly defined and there are no medical issues just property damage, what would happen in messier situation?

Check the ratings Consumer Reports does of insurance companies. I did.

 

[braumeister]

With insurance it's not just a matter of price. It's also a matter of how good the service is.

Good point. I was hit once about seven years ago by a guy with a, shall we say "complicated" insurance situation. When I called USAA, they suggested I use my own comprehensive and pay the $1,000 deductible. That way I could get my car fixed right away. They told me they would go after the other guy in the meantime and make an effort to get my deductible back for me.

Sounded good to me, so I did that. About two months later I got a USAA check for $1,000 just as I expected. Always great service.

 

[REWahoo]

I have been with USAA since 1984. Never used another insurance company for anything. Never had an issue, but haven't made a lot of claims, either. So I went shopping around and found that other companies can save me money. The icing on the cake is I will get a $9,700 check from USAA from my Subscriber Savings Account if I leave them. So why am I so hesitant to make the switch? Seems like a financial no brainer.

Patience, Grasshopper.

After you are with USAA for 40 years (two years from now for you) they will refund you 10% of your Subscriber Savings Account (SSA) each February as a "Senior Bonus". This is in addition to the annual capital distribution they send out each December.

I've been with them since 1971 and over the past 10 years my Senior Bonus and annual distribution of capital totals $10,447. Once I factor in this, no other insurance company has been able to come anywhere close to USAA's net cost.

 

[corn18]

Patience, Grasshopper.

After you are with USAA for 40 years (two years from now for you) they will refund you 10% of your Subscriber Savings Account (SSA) each February as a "Senior Bonus". This is in addition to the annual capital distribution they send out each December.

I've been with them since 1971 and over the past 10 years my Senior Bonus and annual distribution of capital totals $10,447. Once I factor in this, no other insurance company has been able to come anywhere close to USAA's net cost.

Coolio!

 

[ownyourfuture]

I have the same affliction. Been with American Family since I got my drivers license. One windshield claim in 42 years. Added homeowners insurance when I bought my home in 1994. Added an umbrella policy about 10 years ago.

It's currently around $2500 a year total for auto, home, & umbrella.
Last year I took all my paperwork to a State Farm rep.

I could've saved a little over $200 annually by going with them, but I chose not to.

 

[Texas Proud]

I have been with USAA since 1984. Never used another insurance company for anything. Never had an issue, but haven't made a lot of claims, either. So I went shopping around and found that other companies can save me money. The icing on the cake is I will get a $9,700 check from USAA from my Subscriber Savings Account if I leave them. So why am I so hesitant to make the switch? Seems like a financial no brainer.

My sister had USAA and also went shopping... found another top rated company that was MUCH lower...


She switched.


BTW, I have had Progressive for years and her new company was not able to save me money so I stayed....

 

[ivinsfan]

My sister had USAA and also went shopping... found another top rated company that was MUCH lower...


She switched.


BTW, I have had Progressive for years and her new company was not able to save me money so I stayed....

When did she switch and how were rates going forward?

 

[COcheesehead]

With insurance it's not just a matter of price. It's also a matter of how good the service is. I found that out when my 2012 Camry was hit while parked. The guy at fault had a lousy insurance company. And he was under insured. My company and agent didn't seem to give a hoot. The car spent about a month in limbo before anybody at either company got around to assessing the damage and offering me a settlement.

If they can't handle a simple parking lot accident where fault is clearly defined and there are no medical issues just property damage, what would happen in messier situation?

Check the ratings Consumer Reports does of insurance companies. I did.

You are supposed to make the claim with your insurance and then they will go after the other guy. That’s why you have insurance. I got hit twice from behind. All my interactions were with my insurance. It’s just a matter of when or if you get your deductible back. You shouldn’t have to wait to get your car fixed. Oh and always get loaner coverage. Rental cars aren’t cheap anymore.