Switching Insurance Companies - How painful is it?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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Switching Insurance Companies - How painful is it?

Postby rholt » Fri Apr 21, 2017 8:31 am

We have been with USAA for at least two decades. We have a whole suite of insurance with them, house, auto, life, umbrella, VPP. But lately - particularly on the auto side - I am feeling a little ripped off. I want to do some comparison shopping (probably with Geico).

Question - how painful is it switching insurance when you have the collection of products with one company? I know - for example - there is some interplay between our auto insurance and our umbrella.

The auto insurance is of a particular concern right now becasue we will be adding a 16 year old male to the policy in a couple of weeks,

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Re: Switching Insurance Companies - How painful is it?

Postby jlcnuke » Fri Apr 21, 2017 8:47 am

Some companies require you to have everything insured with them to get an umbrella policy through them. I think USAA is one such company. Some, like Geico, do not.

I comparison shop for insurance at least every couple years as after 2-3 years another company has generally provided me with lower rates. Switching a single policy is quite easy (buy new policy, get effective date, cancel old policy on effective date). For switching everything, it'll be more time intensive and you'll have to evaluate the whole picture including multi-policy discounts etc, but it still shouldn't be too painful.

Gropes & Ray
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Re: Switching Insurance Companies - How painful is it?

Postby Gropes & Ray » Fri Apr 21, 2017 8:51 am

Switching is easy. You probably can't switch the life insurance. With most companies, there will be savings to keep your home, VPP, auto and umbrella together.

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Re: Switching Insurance Companies - How painful is it?

Postby bigred77 » Fri Apr 21, 2017 8:59 am

I was with USAA for a number of years before switching because their costs were no longer competitive for my situation.

I shopped all of my policies together because that was easiest (I did not have term life, so maybe exclude that when shopping around as I assume your premiums are locked in already?). I ended up getting the best price from Amica and went with them. It was very simple and painless. The only hassle was calling USAA to cancel my policies and having to go through their spiel about trying to get me to stay as one of their customers (I don't blame them, it just took an hour to let them reprice all of my existing policies and have them go over the fine print of the Amica policies to see if the policies were an apples to apples comparison. They were).

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Re: Switching Insurance Companies - How painful is it?

Postby h82goslw » Fri Apr 21, 2017 9:00 am

I was with Liberty Mutual for 21 years, until last month. Felt like LM was just raking me over the coals in premium increases over the last couple of years and this year I'd had enough. Couldn't even talk to my local agent...I was automatically transferred to national call center every time I tried to question the rates.
So I called a couple big name companies for quotes Switched my auto and home insurance, and added an umbrella policy, and saved $800 a year with MetLife. It was pretty easy to do, everything done over the phone or emails.
I'm pretty sure they'll hit me with a big increase come renewal time and that's when I'll be calling around again for prices since it was so easy.

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Re: Switching Insurance Companies - How painful is it?

Postby JGoneRiding » Fri Apr 21, 2017 9:20 am

I found it mildly painful. I don't plan to switch again any time soon. Biggest pain has been dealing with the mortgage company bec one house is escrowed. I have 3 houses, 2 cars, and an umbrella it wasn't simple but I have been happy overall. Not sure I really save anything--these things are a lot harder to compare than you imagine! But the umbrella more evenly covers everything.

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Re: Switching Insurance Companies - How painful is it?

Postby OnBoard » Fri Apr 21, 2017 10:43 am

A word of caution: If you switch before your policy expires, don't rely on your new insurance company to send a letter of cancellation on your behalf to your old provider. I recently switched from Geico to Allstate. The Allstate agent assured me that they would take care of all the cancellations and make sure I was refunded the remaining premiums. Of course, this did not happen. I had to deal with getting refunds for my auto, homes, and umbrella policies myself. Good luck.

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