Shopping insurance? How often?

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Marbella
Posts: 3
Joined: Mon Dec 31, 2018 10:26 am

Shopping insurance? How often?

Post by Marbella » Mon Jun 10, 2019 5:48 pm

I recently found that despite great credit, driving records etc, State Farm boiled me like a frog over the years. They were about $1000 higher for auto and home than geico and liberty mutual.

Lesson learned, but how often do others check their insurance? Apparently this slow rate creep is not uncommon.

boglerdude
Posts: 712
Joined: Fri Jul 10, 2015 1:28 am

Re: Shopping insurance? How often?

Post by boglerdude » Tue Jun 11, 2019 1:20 am

Every year or two. Sadly there are no shortcuts, if you want the lowest price gotta shop them all. Or if a good insurer like Amica is comparable just go with them

Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: Shopping insurance? How often?

Post by Spirit Rider » Tue Jun 11, 2019 7:51 am

I shop every year, but only change when I save >= 10%. This is usually 2 - 3 years. Almost all insurance companies will engage in rate creep or conversely offer better rates for new customers.

The only difference between cable companies and insurance companies, is that cable companies may give you the new customer rate if you threaten to cancel. Insurance companies say; "go ahead."

bryansmile
Posts: 148
Joined: Wed Feb 12, 2014 10:14 am

Re: Shopping insurance? How often?

Post by bryansmile » Tue Jun 11, 2019 8:00 am

Once a year. The key is to work with an independent agent who will rate shop for you. At the same time, you also call and get quotes from companies that do not work with agents, such as Amica.
I switch when I can save $50 or more a year.

MDfan
Posts: 126
Joined: Tue Oct 18, 2016 7:32 am

Re: Shopping insurance? How often?

Post by MDfan » Tue Jun 11, 2019 8:28 am

I shop auto insurance ever year and have been with about 9 different companies in the last 15 years due to rate increases for no good reason. Currently with Geico. I have zero loyalty to insurance companies.

SimonJester
Posts: 1890
Joined: Tue Aug 16, 2011 12:39 pm

Re: Shopping insurance? How often?

Post by SimonJester » Tue Jun 11, 2019 8:50 am

I shop once a year and quote 12 major insurance companies for Home, Auto, and Umbrella. Now that none of the carriers will issue a 12 month Auto policy in my state I will probably start quoting every 6 months.

It takes about 2 hours to quote all 12, as many will pull in your details on their web site from the CLUE database. I have found that the rates will vary by company every year. One year company X will be the highest, the next year company Y will be higher and company X will be lower. So don't assume State Farm will always be the highest going forward...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

RubyTuesday
Posts: 67
Joined: Fri Oct 19, 2012 11:24 am

Re: Shopping insurance? How often?

Post by RubyTuesday » Tue Jun 11, 2019 8:57 am

Do those of you who quote many carriers every year or so have a streamlined approach of providing the information to receive the quote?

Thanks
RT

NativeTxn
Posts: 39
Joined: Mon May 20, 2019 9:32 pm

Re: Shopping insurance? How often?

Post by NativeTxn » Tue Jun 11, 2019 8:58 am

I'm currently with State Farm (have been for about 2 years now), and have been shopping a bit just to see what's out there, even though my auto and home both renewed in late April.

The thing I've run into is that State Farm covers the full amount of damage from water backup (if you choose to pay for that coverage); whereas pretty much all of the other main competitors (Allstate, Liberty Mutual, Progressive, etc.) will only cover up to $10,000 (like our old Traveler's policy we got through a broker years ago), and in some cases $20,000.

A friend of mine had an issue with their dishwasher that basically flooded their entire downstairs enough to have to replace all of the flooring, most of which was wood, and it ran into the $80,000 range.

We don't have quite as big of a downstairs as they do, but we've got enough wood flooring that should something like that happen to us, it would probably be in the $40,000 - $50,000 range to have all of it repaired/replaced.

I've found that on a net basis when you factor in home, auto, umbrella, and a rider on my wife's engagement ring, State Farm ends up being very competitive with the other major, "retail" carriers. Sometimes a bit more, sometimes a bit less. But the fact that they would cover full replacement of water damage from a backup is enough to make it very difficult to get me to switch - unless the premiums got to be significantly higher than other carriers.

I've recently checked with Allstate (they were a bit higher net for lesser coverage overall), AAA (they were slightly lower net for lesser coverage overall), and Amica (they were competitive on the homeowners, but the auto was $1,000 more per 6 months than SF and that is without any recent wrecks or claims - so I honestly didn't delve into the water backup coverage they provide because there was no way I was going to pay about $2,000 more per year to switch).

I've thought about going through a broker to see what they come back with, but just haven't gotten around to it yet.

So far, our rates have gone up slightly with State Farm on the home (though we live in the Dallas area and I think that is pretty much across the board given some of the storms that have come through in the last couple of years - at least that is what every carrier tells me), but have actually gone down a bit on the auto (we use the Drive Safe & Save app where it tracks your driving habits and you can get discounts - got a big discount at the first renewal of about $220 total and about $20 at the last renewal). Umbrella actually went down a bit at the last renewal in April, and the rider for the ring is less than through Jeweler's Mutual when you account for the deductibles ($0 deductible through SF costs about the same per year for us as a $500 deductible through JM).

So far, I've been pretty happy with SF, and while I generally shop rates at least every 12-18 months, it would take more than a minimal savings at this point to get me to switch based on the water backup coverage alone. That being said, if, and when, I find a carrier that provides the same, or better, coverage for a better net price, I'm very much open to making the switch.

NativeTxn
Posts: 39
Joined: Mon May 20, 2019 9:32 pm

Re: Shopping insurance? How often?

Post by NativeTxn » Tue Jun 11, 2019 9:01 am

RubyTuesday wrote:
Tue Jun 11, 2019 8:57 am
Do those of you who quote many carriers every year or so have a streamlined approach of providing the information to receive the quote?

Thanks
RT
I usually just try to email them copies of our declaration pages that show the coverage limits for the various policies we have, redact out the premium amounts on those pages, and tell them to send me quotes that match the existing coverage, or to get as close as possible if they have different limit structures (for example, my carrier does $250,000/$500,000 on auto, but some do $300,000/$500,000 or something like that).

Then I tell them that I'll compare things and let them know if I have any questions or whether we will make a change or not.

bluebolt
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Joined: Sat Jan 14, 2017 9:01 am

Re: Shopping insurance? How often?

Post by bluebolt » Tue Jun 11, 2019 9:02 am

RubyTuesday wrote:
Tue Jun 11, 2019 8:57 am
Do those of you who quote many carriers every year or so have a streamlined approach of providing the information to receive the quote?

Thanks
RT
Most of them can look up your registration info automatically. If you've created quotes from them in the past, they may have the coverage amounts from those quotes saved, so it is straightforward to get an updated quote. Definitely have your coverage page in front of you, so you can enter the info easier and compare the same coverage.

bryansmile
Posts: 148
Joined: Wed Feb 12, 2014 10:14 am

Re: Shopping insurance? How often?

Post by bryansmile » Tue Jun 11, 2019 9:09 am

RubyTuesday wrote:
Tue Jun 11, 2019 8:57 am
Do those of you who quote many carriers every year or so have a streamlined approach of providing the information to receive the quote?

Thanks
RT
I work with a local independent agent. They can get quotes from 6-10 insurance companies easily. I'll just handle the rest such as Geico and Amica.

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Toons
Posts: 13291
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Shopping insurance? How often?

Post by Toons » Tue Jun 11, 2019 9:10 am

I don't
Geico
I am satisfied.







:idea:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Broken Man 1999
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Re: Shopping insurance? How often?

Post by Broken Man 1999 » Tue Jun 11, 2019 9:23 am

bryansmile wrote:
Tue Jun 11, 2019 8:00 am
Once a year. The key is to work with an independent agent who will rate shop for you. At the same time, you also call and get quotes from companies that do not work with agents, such as Amica.
I switch when I can save $50 or more a year.
This!

I use an independent insurance agent, she does the shopping for me. Every couple of years I submit my info to another independent insurance agent just for a sanity check. So far my agent has kept her pencil sharp.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

boglerdude
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Joined: Fri Jul 10, 2015 1:28 am

Re: Shopping insurance? How often?

Post by boglerdude » Tue Jun 11, 2019 8:02 pm

Independent agents are worth checking with but there are many companies they cant quote.

As mentioned water/sewer backup is common, expensive, and often underinsured so leak detectors should be in every home.

https://thewirecutter.com/reviews/the-b ... -detector/

daheld
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Joined: Wed Sep 13, 2017 8:14 am

Re: Shopping insurance? How often?

Post by daheld » Wed Jun 12, 2019 7:10 am

This post has motivated me to do some rate shopping through an independent agent. I've always used State Farm, and my perception is that our current insurance premiums (for homeowners, auto on two cars, and $1 million umbrella) are not bad. I'll be interested to hear what kind of numbers I get back from the independent agent.

fru-gal
Posts: 477
Joined: Wed Jan 02, 2019 9:48 pm

Re: Shopping insurance? How often?

Post by fru-gal » Wed Jun 12, 2019 7:17 am

I used to get homeowners through the local independent agent. Then AMICA, where I had the rest of my insurance, opened up writing homeowners in the (coastal) area I live in. I switched and saved $600 a year, So independent agents are not the be all and end all.

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