Is it worth switching auto/home insurers?

[sheilafri]

I have 2 family members that work for different insurance companies. Both said the extreme weather events the last few years are beginning to have an impact on insurance companies. I wouldn’t be surprised to see more companies increasing rates.

DIL is in the insurance business. Reading between the lines, insurance is going to get more expensive, harder to get, and extreme weather is the culprit (at least for homeowners).

 

[Gordon Gekko]

It’s like the S&P 500; buy and hold is the best strategy and few can beat it trying to time it.

 

[DL1WDW2]

In reference to State Farm ( post 27 ) … I have been with State Farm 50 years and now live in Florida. I could consider USAA ( eligible) or AAA .
Ive always had the opinion AAA was great in California .
Appreciate your opinion but understand if you prefer to not give specific advice.
I will be doing some research on my own .
Thanks for being honest .

 

[clh2]

At your age, does your car insurance offer any discounts for something like a defensive driving class? Our insurance offers this, however, neither my DH or I have taken it.

Another thought on increased rates, we know the are going to go up somewhat at our next renewal. Our insurer dropped rates during the pandemic, and people working from home, but because many people are driving more, the rates are going back up. This has been communicated to us, in advance.

 

[sdk1231]

I agree about deductibles but "where all the rate is" doesn't work out IME (grew up in the insurance industry, worked in the insurance industry, step-father-in-law is our insurance agent so still have access to recent information, etc).

It's not uncommon for homes insurer's to require certain deductibles the dollar amount being the better rather than a percent often.

Then there's restrictions based on your exact area be that just your zip code, your county or region. The insurance company I worked for in my county required everyone with a wood roof to carry a 2% Wind&Hail deductible for example. Places prone to certain issues may have requirements as well. I know barrier islands (TX was the main one I dealt with, ETA when speaking about barrier islands, I dealt with close to 35 states in total) Brazoria County for instance had mandatory requirements. This is just me pulling information out of my head from what I remember.

In addition on homes the difference between some of the deductibles doesn't always amount to much on the premium. It just depends.

On the auto $500 deductible being very common well sometimes bumping yourself up to $750 didn't really amount to much at all, or if you were at $750 (or thereabouts) bumping up to a $1,000 didn't make much difference and truthfully sometimes increasing your deductible increased your rate.

I def. agree with looking at someone's deductibles but there's a ton of back algorithms at play such that going as high as possible isn't as cut and dried as thinking the insured is carrying the most burden so the insurance company will give them a break on the rate nor is it always possible for someone to reduce their deductible.

Good advice though is to check back with your insurance carrier (be it your agent or company itself) periodically as things change in one's circumstances and home. Re-evaluating what your policy has should be done every now and then.

Definitely agree with you on all of the above. My comment that "that's where the rate is" in terms of deductibles was a drastic over-simplification. Having filed millions (exaggeration) of rate changes over the years, rating algorithms are too complex to put in a message board post. I was making one suggestion, that is often one that will help. I hear all the time "I never make claims" from people who carry $500 deds. Why not $1000? Why not 10K? Why not 2% wind/hail or 5% wind/hail? Again though, I admit to the fact that I was making one simple suggestion, and not providing a catch-all for everyone. While licensed, I am not in a position to provide accurate or effective insurance counseling for anyone on a message board. But I agree with everything that you've said.

 

[ambgoph]

Am I best to find a broker? Do they charge? I'd rather just do this over the phone if possible.

Yes - find an insurance broker in your area and give them a call. I used a broker for the fist time three years ago and was happy with the decision. My broker asked for the declaration pages from each policy and took it from there. I ended up with an insurance company I never heard of (highly rated financials) with better coverage and less money than the insurance company I was with. The broker’s commission was included as part of the premiums.

 

[Mackenzie Click-Mickelson]

Definitely agree with you on all of the above. My comment that "that's where the rate is" in terms of deductibles was a drastic over-simplification. Having filed millions (exaggeration) of rate changes over the years, rating algorithms are too complex to put in a message board post. I was making one suggestion, that is often one that will help. I hear all the time "I never make claims" from people who carry $500 deds. Why not $1000? Why not 10K? Why not 2% wind/hail or 5% wind/hail? Again though, I admit to the fact that I was making one simple suggestion, and not providing a catch-all for everyone. While licensed, I am not in a position to provide accurate or effective insurance counseling for anyone on a message board. But I agree with everything that you've said.

It's totally good advice no matter what to play around with what a policy has while still making sure someone is covered best I also definitely agree with what you've written

 

[SandyinMonterey]

I went to an insurance broker last year. We were able to save on auto, home & umbrella. Best savings was Iwith home. Not only did it cost a lot less, we got more coverage.

 

[Frwinkley]

OP here: contacted an insurance broker that a friend recommended. Response time was within an hour of initial contact and I had a quote by the end of the day. The online brokers are way too time consuming for me.

Quote is from an insurer who is not a household name (or jingle), but significantly better home, auto and umbrella coverage at about $1300 a year cheaper than our renewal quote.