Why am hesitant to switch insurance companies?

[COcheesehead]

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.

As a point of comparison I pay less than $1250 a year for coverage on a million dollar home, two cars worth about $75,000 and $4m in umbrella coverage.

 

[ivinsfan]

As a point of comparison I pay less than $1250 a year for coverage on a million dollar home, two cars worth about $75,000 and $4m in umbrella coverage.

That's not a fair comparison, it can depend on age, where you live, possible weather hazards, yada, yada yada.

 

[COcheesehead]

That's not a fair comparison, it can depend on age, where you live, possible weather hazards, yada, yada yada.

Or it could be a fair comparison. Neither one of us knows.

 

[ivinsfan]

Or it could be a fair comparison. Neither one of us knows.

Exactly, for example we don't pay metro driving rates but get dinged because we live more then 5 miles from a fire department...

 

[Dtail]

Was with Liberty Mutual for over 30 years. The agent for Liberty who effectively was also a broker for me, found much better rates with Travelers.
For home insurance, company premiums went from 1300 to 3500. Switched companies and now at 1500.
No qualms about switching. It's just business.

 

[calmloki]

We've been with USAA for six years or so. Last year our SoCal house flooded when a toilet supply line nut split. Wasn't discovered for about a week. With all the damage and goods storage and lodging USAA paid out a little more than we paid for the house in 2011. A week after we found out about the flood we got rear ended. Tried dealing with the other driver's insurance company, then just paid the deductible and let USAA deal with them. Car got fixed, deductible was refunded, we were out of pocket $zero.

Last week we were parked at a garage sale and someone backed into our driver's door and must not have noticed, because they didn't leave a note or anything... Rather than run a claim we contacted a paintless dent removal company, who did a great job for $650. Druther pay the $650 than have USAA decide we are just unlucky and need to be dropped.

 

[ownyourfuture]

As a point of comparison I pay less than $1250 a year for coverage on a million dollar home, two cars worth about $75,000 and $4m in umbrella coverage.

I mistakenly added property taxes to the amount.
That would put my total for home, auto, & umbrella coverage at around $1500
But my house is only worth around 175K

Who is your insurer ?

 

[COcheesehead]

I mistakenly added property taxes to the amount.
That would put my total for home, auto, & umbrella coverage at around $1500
But my house is only worth around 175K

Who is your insurer ?

Progressive.

 

[braumeister]

You are supposed to make the claim with your insurance and then they will go after the other guy.

Not really. I did that the last time I got hit (see post # 19 above). But I was rear-ended once many years ago and I simply made the claim through the other guy's insurance company (Farmers, IIRC) and they were very easy to deal with. Never had to deal with a deductible.

 

[sengsational]

When I quoted last time, a few or more years ago, I could get lower auto or lower homeowners or lower umbrella, but no company had a lower total. It was like they gave you bragging rights on how cheap your homeowners was (if you got the discount for having both with them) while jacking you on the auto, or vica versa.

 

[COcheesehead]

The key for us is having a good relationship with our broker. It’s then up to them to make sure we have apples to apples quotes. Let them do the legwork. They are getting paid. I would not put it on myself to get quotes. I am sure I would miss something and regret it. Use a good independent broker. Online reviews, NextDoor, talking with friends, even a phone interview may help you track one down. We love our broker, but have zero loyalty to our coverage provider.

 

[ExFlyBoy5]

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?

This. We have switched back and forth several times over the years to reap the savings. Neither company has ever pouted about me leaving.

As to loyalty to USAA, I am not loyal to them. As a matter of fact, the recent fines they have been levied left a sour taste in my mouth about their business practices.

 

[Chuckanut]

That's not a fair comparison, it can depend on age, where you live, possible weather hazards, yada, yada yada.

+1

Location and the local cost of living are big issues.

 

[Katiek]

I'm with State Farm and I'm pretty sure that if I shopped around I could get a better deal. But I am very pleased with my agent and am willing to pay a little more for the services he provides. He has spent time answering questions to make sure the insurance matches my needs (and he pointed out different ways to save) and was incredibly helpful when I needed to make a claim against another driver's insurance. He's responsive without ever doing a hard sell.

 

[golfnut]

Showing loyalty to an insurance company just makes your wallet lighter.

 

[REWahoo]

As to loyalty to USAA, I am not loyal to them. As a matter of fact, the recent fines they have been levied left a sour taste in my mouth about their business practices.

I thought it was the bank, not the insurance company, that got slapped with those fines.

 

[brett]

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.

Absolutely agree. We selected our insurance company five years ago based upon feedback on how various insurers processed claims from a major disaster area (fire).

Our SIL is a contractor. Some of the insurers we thought we good were not, some surprises.

The bottom line is that insurer management teams and ownership change over time. As do internal policies and risk assessments.

An insurer may have been wonderful to deal with 20, 10, 5 years ago but that is not a particularly good indicator of how your next week claim will be handled.

Also depends on the adjusters. How they are goaled and paid. Many are independent and work on contract.

The warm and fuzzy ads are meaningless.

 

[brett]

Showing loyalty to an insurance company just makes your wallet lighter.

Exactly.

If you want loyalty get a dog.

You will not get it from an insurance company.

 

[Bamaman]

Like has been said, USAA and Amica are #2 and #1 rated. Both are relatively expensive, but if you have a major loss you'll be better treated than the other majors. Price is not always value.

I've been one to jump from company to company over the years. They quote you a low price to start with. Look up and in 3 years you'll be paying a whole lot more.

My homeowners' insurance was quoted @ $4,000+ 30 months ago when we moved. I found the coverage at Nationwide for $2000, and was thankful to get it. This year, Nationwide renewed at $2,900 because of the "cost of wood and construction labor increased."

In my retirement, my most expensive cash outlay is homeowners on 2 homes and car insurance on 3 cars. And the big national insurance companies are essentially generic--except USAA and Amica.

 

[tb001]

We’re limited in who we can use because many insurers will not longer insure in our area. We started shopping around when our already expensive home owners insurance doubled in one year. Found much better rates than our independent broker was able to find. We had two companies that were within a few hundred dollars and went with the more expensive company because the agent was so incredibly responsive and great about making sure we had apples to apples quotes.

But three years later and my guess is we’re significantly underinsured. Our agent has dropped some duplicate coverage to keep our rates lower, but given the surge in home prices and new construction we likely need to increase our coverage this year.

A friend who is a claims adjuster for one of the big agencies says the difference between how her agency handles claims and how the discount agencies do it is huge. She says they don’t fully investigate claims so you can end up with significant judgements coming up several years out. After having someone with a discount agency hit me in a parking lot, I can believe it. I got letters about that claim 3-4 years after the accident. I forwarded them to my agent who said to ignore it.

 

[MichaelB]

We just signed with USAA and I couldn’t be happier. When we first moved to S Florida none of the major insurers were writing new homeowner policies, so I’ve been using 2nd tier insurers, and that worries me. I checked a few months ago and they are now writing new policies again, so I jumped at the chance to get one. From there it made sense to move our other insurance needs.

 

[klec]

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 was with USAA for 30+ years. TN Farm Bureau has had competitive rates and stellar service.

 

[Dtail]

I once asked Liberty Mutual that if I was a new customer instead of a 30 year customer, would I get a better rate and the answer was yes.
I then asked if I left them, but then came back a year later, would I be considered a new customer and thus qualify for a better rate and the answer was yes.

What more does one need to know about wondering about switching companies?

 

[ScoopKona]

Not a USAA member.

That being said, I only care about one thing when it comes to insurance companies -- how do they handle claims.

Auto: We have had three cars totaled in 20 years -- the county dropped an electrical pole on one; one was stolen off our driveway; one destroyed in a flood. Our rates are lower than when we started. And it's a mutual. If Pele opens a lava tube under my car, I'm not worried.

In addition, I use this company for my umbrella policy.

Property insurance is the same story. I've had a big claim thanks to an awful tenant. Damage fixed. Lost rent reimbursed. No rate increase.

If another company offered me big savings, I'd laugh at them.

 

[ExFlyBoy5]

I thought it was the bank, not the insurance company, that got slapped with those fines.

It was, but still unacceptable to me under the umbrella of USAA.