Is having insurance from 5 different companies normal?

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capitalG
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Is having insurance from 5 different companies normal?

Post by capitalG » Sat May 26, 2018 4:12 pm

After the dust settled (both literally and figuratively) from moving into our new home, I realize I now have insurance policies from 5 different companies (auto, house, condo, umbrella, term life). I've been working with the same insurance agent (broker?) for the last 8 years or so and he says this is unavoidable due to who underwrites what and the pricing he is offering me.

I find this quite annoying due to the administrative burden (different websites/logins, payments at various times of month/year, and two of the companies don't offer online management) and also have the (uninformed) suspicion that I could probably get a better rate/coverage if one company could cover me on multiple policies. Does anyone else have this issue, and if so, any advice on how to detangle this web?

CapG

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Kenkat
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Re: Is having insurance from 5 different companies normal?

Post by Kenkat » Sat May 26, 2018 4:19 pm

I think you can probably get down to two companies (maybe one) and not pay much more if anything than you are currently paying.

I have my home, auto and umbrella through one company and my life and disability through another company. I think it makes sense to split between Property / Casualty and Individual Life. While some companies offer both, most will specialize in one or the other, hence the split.

TravelforFun
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Re: Is having insurance from 5 different companies normal?

Post by TravelforFun » Sat May 26, 2018 4:22 pm

I have home, auto, and umbrella with Geico; and long term care with Unum. The more you combine, the better discount you get.

TravelforFun

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jharkin
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Re: Is having insurance from 5 different companies normal?

Post by jharkin » Sat May 26, 2018 4:29 pm

I have one company for everything (auto, home, umbrella, life). I probably am not paying the cheapest overall premium, but I shop for best service, not lowest price.

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grabiner
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Re: Is having insurance from 5 different companies normal?

Post by grabiner » Sat May 26, 2018 4:32 pm

Your umbrella should be with the same company as your home and auto insurance. The reason is that you want everyone's interests to be aligned; if you are sued for more than your auto policy limits, you do not want two different insurers who have to negotiate a settlement.
Wiki David Grabiner

runner3081
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Re: Is having insurance from 5 different companies normal?

Post by runner3081 » Sat May 26, 2018 5:30 pm

We have three, currently:

-Term Life (Company 1)
-Auto/Home (Company 2)
-Umbrella (Company 3)

likegarden
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Re: Is having insurance from 5 different companies normal?

Post by likegarden » Sat May 26, 2018 5:44 pm

We have auto, home and umbrella from the same insurance for 30 years, makes sense to us.

ThriftyPhD
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Re: Is having insurance from 5 different companies normal?

Post by ThriftyPhD » Sat May 26, 2018 5:51 pm

capitalG wrote:
Sat May 26, 2018 4:12 pm
I find this quite annoying due to the administrative burden (different websites/logins, payments at various times of month/year, and two of the companies don't offer online management) and also have the (uninformed) suspicion that I could probably get a better rate/coverage if one company could cover me on multiple policies. Does anyone else have this issue, and if so, any advice on how to detangle this web?
Nothing says you can't go directly to an insurer and get a quote. Make sure the coverages match (or you know where they don't match) and see how much you're saving by slicing and dicing under the broker. Perhaps you're saving a lot, perhaps it's a headache to save you $10/year, perhaps you're overpaying. Shop it around and see what your options are.

Ping Pong
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Re: Is having insurance from 5 different companies normal?

Post by Ping Pong » Sun May 27, 2018 6:09 am

grabiner wrote:
Sat May 26, 2018 4:32 pm
Your umbrella should be with the same company as your home and auto insurance. The reason is that you want everyone's interests to be aligned; if you are sued for more than your auto policy limits, you do not want two different insurers who have to negotiate a settlement.
It should make no difference to the insured. It’s only annoying to the insurance companies. Though you’ll likely get lower rates by having them all with the same company because of the annoyance.

student
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Re: Is having insurance from 5 different companies normal?

Post by student » Sun May 27, 2018 6:13 am

Just a data point, I have all my insurances (home, auto and umbrella) with one company.

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GoldStar
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Re: Is having insurance from 5 different companies normal?

Post by GoldStar » Sun May 27, 2018 6:39 am

The only two I have combined is home and umbrella.
My agent gets the best prices through each separately. When I have gotten quotes on my own they have been much higher. In my experience - the large companies that offer a 15% discount to hold multiple products for you typically charge 30 to 40% more (so you can pay 30% more on and individual product and then get the 15% discount- you are still paying more).

MathWizard
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Re: Is having insurance from 5 different companies normal?

Post by MathWizard » Sun May 27, 2018 10:36 pm

I've almost always had home and auto with the same company. I typically am offered a 15% discount in auto to move to the same insurer as home insurance.

I once heard from a retired insurance salesman that you should shop around every 5 years, because the company slowly raised the rates on you. I never have done this. Of course, salesmen get commission when they get you in the door, so maybe getting you to change insurer every 5 years put more money in the salesman's pocket.

boglerdude
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Re: Is having insurance from 5 different companies normal?

Post by boglerdude » Mon May 28, 2018 1:29 am

If you dont enjoy the hassle put everything with a company that has the best customer service. Amica, Chubb, USAA or perhaps a smaller regional insurer.

You might pay more but you'll likely get paid without a fight when things go wrong.

Longdog
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Re: Is having insurance from 5 different companies normal?

Post by Longdog » Mon May 28, 2018 4:33 am

Every few years at renewal time I do a sanity check to see if my current insurer offers the best (or at least very competitive) rate for my auto, home, and umbrella policies. I look at the total cost of all policies per insurer and make sure the coverages between companies is equivalent. Sometimes one of the three is a bit higher, but the other two are significantly lower so that the total cost is lower. This way I deal with one company for all of my insurance policies and get the best rate for that bundle. I only check with highly reputable companies (typically three; no more than four), and actually don’t change companies often.
Steve

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capitalG
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Re: Is having insurance from 5 different companies normal?

Post by capitalG » Fri Jun 01, 2018 6:04 pm

Thanks everyone for the feedback. I managed to consolidate auto, umbrella, and condo insurance with Geico for a decent discount and simplified billing/management. Interestingly, while they underwrite only two of those policies, they serve as the customer facing interface for all three - in the outside chance I have a claim, I hope dealing with them on the policy that they do not underwrite does not end up being problematic.

Interestingly, I cannot find a good alternative option for the Home Owner policy - Geico initially quoted some competitive rates but then located a claim the previous owner filed, causing the underwriters to either decline to offer coverage or hike premiums 2x in response. Hopefully there is a statute of limitations the "ghost of claims past" can haunt our house...

capG

talzara
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Re: Is having insurance from 5 different companies normal?

Post by talzara » Sat Jun 02, 2018 11:38 am

capitalG wrote:
Fri Jun 01, 2018 6:04 pm
Interestingly, I cannot find a good alternative option for the Home Owner policy - Geico initially quoted some competitive rates but then located a claim the previous owner filed, causing the underwriters to either decline to offer coverage or hike premiums 2x in response. Hopefully there is a statute of limitations the "ghost of claims past" can haunt our house...
Homeowners claims stay on the CLUE report for 7 years.

Homeowners insurance has less than 1/2 the claims frequency of auto insurance, so even one claim makes your house a high risk. If you had two auto insurance claims on your record, you'd also pay more for car insurance.

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