Why am hesitant to switch insurance companies?

[RE2Boys]

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.

I have been a USAA member since 1971. For me, how USAA handled claims has been extremely outstanding. Fifteen years ago our home was struck by lightning and resulting fire. A claims adjuster was on site within 48 hours, arranged for temporary housing, met with a company we chose for handling clean up and rebuild. Within days we had an agreement to begin rebuild. The adjuster had over $100K wired to my bank account to cover expenses as they occurred for living expenses and rebuild. They were fantastic.

And in the last five years, we have had 4 vehicles totaled. Two by collision with deer, one was rear ended, and our camper damaged by a hail storm while traveling in Colorado. All acts of nature except the rear ending. We tried to work with the other insurance company GEICO, but found USAA was much more responsive and USAA sent a check for replacement within weeks, a couple of months later sent us the deductible once they settled with GEico.

It is very hard to compare USAA rates with other companies as they maintain a Subscriber Savings Account that essentially results in a rebate of premiums depending on their loss experience for the year. If I ever leave them for over six moths, the balance is sent. And the last several years, I get about a $600 yearly rebate of premiums,

I have found their investment services ( mostly now sold off) and their banking services are not anything special and have done much better by ignoring those branch services through the years.

 

[COcheesehead]

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?

^^this^^

 

[brett]

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?

I did not even have to leave. The insurer did not renew my home policy. They honored the on line quote that I obtained as a 'new' customer.

The insurer did not like it but so what. It is there problem for having discriminatory pricing.

 

[corn18]

Here's an update.

I got quotes from State Farm, Amica and Nationwide. Took a bit of work to get everything apples to apples including the SSA check USAA sends every year and the weird year end discount Amica uses. Currently, I pay $3,679 / year for auto, home, valuable personal property and umbrella.

State Farm is $135 less / year
Amica is $503 more / year
Nationwide through a local independent broker is $535 less / year

The independent broker was recommended by a good friend who uses them. They were really easy to talk to and I got a follow up call from the owner of the agency. I got a good vibe from them.

I have another follow up call with the owner tomorrow, but I am leaning towards making the switch. Not huge savings but the $9700 SSA check will be nice. And then if I want to go back to USAA, I can.

Oh, and I was wrong. I have only been a member for 35 years. My memory must be failing me.

 

[ExFlyBoy5]

Here's an update.

I got quotes from State Farm, Amica and Nationwide. Took a bit of work to get everything apples to apples including the SSA check USAA sends every year and the weird year end discount Amica uses. Currently, I pay $3,679 / year for auto, home, valuable personal property and umbrella.

State Farm is $135 less / year
Amica is $503 more / year
Nationwide through a local independent broker is $535 less / year

The independent broker was recommended by a good friend who uses them. They were really easy to talk to and I got a follow up call from the owner of the agency. I got a good vibe from them.

I have another follow up call with the owner tomorrow, but I am leaning towards making the switch. Not huge savings but the $9700 SSA check will be nice. And then if I want to go back to USAA, I can.

Oh, and I was wrong. I have only been a member for 35 years. My memory must be failing me.

The "weird" end year discount w/ Amica is probably the dividend check. They make an estimate because it's not guaranteed. We have gotten one every year we have been insured with them.

 

[corn18]

The "weird" end year discount w/ Amica is probably the dividend check. They make an estimate because it's not guaranteed. We have gotten one every year we have been insured with them.

Gotcha. I included the discounted amount in the comparison.

 

[brett]

We would never consider changing for a small amount if we are happy with the supplier. 15 percent or so. When it goes any higher we reconsider and go to the market.

Just did the same on our communications. Negotiated down for $181 to $114 and increased the service level.

You never really know what is out there until you do a little comparative shopping. On price and on perceived quality/value for money.

 

[Texas Proud]

When did she switch and how were rates going forward?

She switched last year and rates were similar on renewal... not a bait and switch

 

[corn18]

Made the switch this morning. Was really great talking to someone directly who listened to what I wanted. We carry max limits on everything but keep the deductible fairly high because we can cover that fairly easy. He offered good advice and he's local, so I can always stop by his business if I get irritated. So far, so good.

 

[msanniee]

It’s all about coverage.

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.

Lower rates don’t mean much to me as I want a certain level of coverage. You must read the policy to such you get coverage that lets you not worry about loss.

Everyones tolerance for loss is different, so read the complete policy.

 

[teej1985]

It is very hard to compare USAA rates with other companies as they maintain a Subscriber Savings Account that essentially results in a rebate of premiums depending on their loss experience for the year. If I ever leave them for over six moths, the balance is sent. And the last several years, I get about a $600 yearly rebate of premiums,

Only certain USAA members receive that. I never received a premium rebate when I've used USAA, it didn't matter, in California and Hawaii nobody could compete with them. Arizona, on the other hand, they are really high.

 

[corn18]

Lower rates don’t mean much to me as I want a certain level of coverage. You must read the policy to such you get coverage that lets you not worry about loss.

Everyones tolerance for loss is different, so read the complete policy.

I sent my policies to the independent broker and they matched everything. That made it easy. But trying to get the same coverage from Amica was a lot harder. I just got off the phone with USAA and cancelled all my policies.

 

[Joylush]

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.

I was going to say this. Right now my subscriber’s savings account is over $16,000.. Every year the savings account distribution they refund covers my entire homeowners premium. Once I hit 40 years which I think is this year the senior bonus will kick in as well. I was told that in many cases these distributions cover pretty much the whole year’s premiums for home and auto insurance. And you can name a beneficiary to inherit your account. We have always been very happy with USAA.

 

[catii]

I've been with USAA since 1970. I've had some major claims, including one when a windstorm blew off my roof, followed by 6 inches of rain. USAA paid out over $350,000, & my rate didn't go up by a single penny. With 2 Senior Bonuses each year, I get back almost $3,000, so I'm not going anywhere else!

 

[corn18]

I’d just prefer to get my $9,629 SSA check this Sept and not metered out over the rest of my life. Six months from now, I can switch back to USAA. In the meantime, I am paying $800 less a year for the same coverage.

 

[Joylush]

I’d just prefer to get my $9,629 SSA check this Sept and not metered out over the rest of my life. Six months from now, I can switch back to USAA. In the meantime, I am paying $800 less a year for the same coverage.

This must be location dependent. I’ve had my insurance agent (for various other insurances) look every so often to try to get me to switch to him for auto coverage but he tells me every year to keep my USAA coverage because nothing he has to offer can come close to providing me the same coverage at the price I pay with USAA.

 

[imnontrad]

I am the same way. I have been with USAA since the late 70's. But they really bungled a car accident last year. The other party 100% at fault and I was still out $800 to be able to get my car back plus so many weeks of frustration that I finally contacted a lawyer. My SSA is under $2,400 too.
There are many active duty officers who are going elsewhere due to their perception that USAA's customer service has slipped a lot (I agree) plus lower rates elsewhere.

 

[ERhoosier]

Been with USAA for years across multiple states.. Excellent service (inc claims)with unmatched premium rates. Periodically have shopped for lower rates and NEVER found any major insurer who could match rates for SAME coverage (inc most of the carriers mentioned here). EVERY time I got a “lower” quote it was for significantly less coverage (lower limits, higher deductibles, more exclusions, etc.). Interestingly, I have gotten some promotional swag from agents (inc independents) to give me quotes. When I mention I’m with USAA most don’t even bother to follow up, and those that do drop my contact when I tell them my current premium, policy limits & features. And that is not even including the subscriber benefit rebates. Not saying situation is same for all areas or regions, just my experience.
Whatever carrier you are with- The time to review & compare actual policy features is BEFORE you have a loss. For example- home owners damage full replacement vs depreciated coverage is NOT the same product. State minimum car insurance is not the same as a full featured policy with solid coverage limits. Some personal liability “umbrella” policies are so full of holes they are rather useless at any price.

 

[Jkirk]

I was with USAA for 20 years. A few years, I checked Geico and found that my bundle rate (carss and house) would be $1500 less per year if I switched. I tried speaking with USAA for a price reduction, they wouldn’t budge. They used my “subscriber savings” balance of $4k as leverage to get me to stay. Seems they view it as a small life insurance policy for members. Told me they’d have to close that account and pay it out to me if I switched insurance. I remember asking the rep on the phone “Wait a minute, are you telling me that you’ll pay me $4k to leave AND Geico will be $1500 per year cheaper?”

Dropped them the next day. Geico has been great for us ever since.

 

[Jkirk]

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.

I did love that about USAA, but I wasn’t willing to pay $1500/yr more than Geico to get that level of service.

 

[GTFan]

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.

One thing folks might not know is that USAA has multiple companies offering coverage, and the original USAA for military officers has plans/accounts that are not available to NCOs and enlisted (including these SSAs). We are in the latter category but stick with them for the service.

 

[VanWinkle]

Shop your coverage every year and you will be surprised how competitive the company you're currently insured with can be. I've been with Esurance for about 4 years at a considerable savings over my prior coverage with the company I retired from.

 

[eytonxav]

Insurance becomes very important when you need it most, especially if you have significant homeowner or vehicle accident claim with bodily injury. USAA and AMICA are the top 2 companies for a reason, just ask a personal injury attorney or anyone that has had their house destroyed.

 

[ERhoosier]

DFW_M5 raises an excellent point. Insurance is all about the lowest premium.....until you have a major loss and find out your policy limits/features to be inadequate.

Be VERY careful when cross-shopping insurance to compare ACTUAL policy features and not just simple advertised $$ policy limits.

Insurance salespeople are notorious for taking HUGE liberties with the notion of "equivalent coverage".

FWIW- The last time I shopped GEICO vs USAA, GEICO's quote was indeed lower....but for significantly lesser coverage (e.g. depreciated vs full value HO's, far lower auto liability & medical payments, no post-accident rental car coverage, etc., etc.). IMHO- quite disappointing since I provided the specific details of my existing coverage and requested an 'apples to apples' quote. (NOT unique to GEICO, BTW, as I have had multiple other similar experiences with quotes from other major insurers).

 

[eytonxav]

DFW_M5 raises an excellent point. Insurance is all about the lowest premium.....until you have a major loss and find out your policy limits/features to be inadequate.

Be VERY careful when cross-shopping insurance to compare ACTUAL policy features and not just simple advertised $$ policy limits.

Insurance salespeople are notorious for taking HUGE liberties with the notion of "equivalent coverage".

FWIW- The last time I shopped GEICO vs USAA, GEICO's quote was indeed lower....but for significantly lesser coverage (e.g. depreciated vs full value HO's, far lower auto liability & medical payments, no post-accident rental car coverage, etc., etc.). IMHO- quite disappointing since I provided the specific details of my existing coverage and requested an 'apples to apples' quote. (NOT unique to GEICO, BTW, as I have had multiple other similar experiences with quotes from other major insurers).

Policy limits and terms are very important, but also having an insurance carrier provide great service in working with you, without you having to do somersaults to get the coverage you expect. Many will fight tooth and nail to minimize their payouts, drag out the process, and make your experience one you will regret.