Insurance Policy Question
 

I read somewhere that once a year when your insurance policy's come due, you should always review your policies with other companies to seek cheaper rates.

Now I been with XYZ company going on 8 years, and there isn't 12 months goes by without them raising my 3-group policy's total premiums by $10- $20 and more in any given year, (auto, home, and umbrella).

Ok, yes, I realize there's inflation, fires, floods for insurance co. to pay for, but is this normal procedure for insurance Co's to treat long time policy holders.

If I switch to other Companies with cheaper rates for now, what's not to say in 12 months, the same thing will happen, rates go up.

Am I better to bite the bullet and stay put?

I need some guidance here people.

Cheers!

There is no way to tell. I had Allstate auto insurance for 30 years and, last year, they raised my premium by 32 percent. I switched to State Farm and their premium was less than half of the Allstate premium. When I asked State Farm why the premium was so low, they said that it was because I had been with Allstate for 30 years. When I told Allstate what they said, the Allstate guy said that I should switch to State Farm. Go figure.

I would suggest that you shop separately for home and auto insurance. You can often get a better deal if you don't bundle the policies. If they offer you a multi-policy discount, do the math. I was once quoted a 25 percent discount for a bundle, but that was before the other discounts were applied. The actual bundle discount was less than 3 percent.

I don't know what happened. I switched back to Florida Farm Bureau for auto in Dec 2021. Quote with h/o coverage for two on one vehicle, ages 65 ish, $95/month. Got renewal for June at $75/month. Best rate in our lives.

Cheaper is not always better.

Just be careful that they are not giving you an introductory rate, or you could be right back where you started at the next renewal

I have never heard of an introductory insurance rate. The agent will not be able to tell you that the rate they quote will not go up when it renews.

We thought of switching from Allstate but was concerned about having to have a new roof put on before another company would take us.

According to the Allstate rep they will not require us to put in a new roof for the forseeable future.

As a result since their increases have not been outrageous decided to stay put.

Yep, this is the downside of switching insurance companies that experts that write
these articles don't tell you.

I think I'll stay right where I'm at.

Thanks for all your input on the subject.

You only know how good your insurance company is when you file a claim

And this is sad after years of paying premiums

We have Allstate for auto, homeowners, and an umbrella policy because I wanted sinkhole coverage. First year homeowners (for 2650 sq ft home) was $1400. Next year, $2200. This year, $3300. Sigh.

Kathy

In addition to your property & casualty insurance policy review, I suggest you also look at your health insurance policy for benefits and premiums (if any) changes.

The Annual Enrollment Period for Medicare (65 and older) is October 15th through December 7th with changes going into effect on the 1st of the year.

The Open Enrollment Period for ACA Marketplace (Under 65) is November 1st through January 15th.

Shop around ! I went from 1,900 with Tower Hill.for years down to 1050.00 with Farmers with more coverage.

you don't need to wait for your yearly policy to be over. You can go to any insurance company at any time with your policy for a review. If you change, your old insurance company will send you refund checks. I switched to Farmers, got a cheaper rate for same coverage and did not have to have a roof replacement ( 15 yrs old)

Usaa??
 

We have had USAA……forever. For both auto and home. Seems like their rates keep going up as well. Originally they only covered military officers and secret service but now they seem to cover anyone who is in any way related to a member of the military. Maybe that’s why rates keep climbing. Supposedly when you close out your member account they will give you a portion of monies set aside in your account. I treat that amount as an asset

The quote you receive tells you if they want your business. Loyalty no longer exists. Geico had the nerve to give a lower quote After switching. Ridiculous

I agree. No loyalty. My experience with switching from Allstate to State Farm was that the Allstate agent had no flexibility to offer a lower rate. Even after being a customer for 30 years, he advised me to switch because the State Farm premium was less than half of the Allstate price for the same coverage. If State Farm raises their rate, I will just go back to Allstate.

I have Allstate as well
I believe they have the most comprehensive homeowners protection

Wow!

Five Years
 

We usually shop around every five years. Gotta do it to keep premiums down. Might be able to show customer retention department at current company quotes from new companies to get a better rate.

Always shop for the best coverage at the best price. I have no problem changing insurance companies if their fee is lower and their coverage is the same or better. Don't worry about the price next year, because if they ALL go up, then there's nothing you can do about it. However, if your premiulm does go up, then it's time to go shopping again for the best deal. Be vigilant, be wise, be better off financially.

Rates aren't the only issue
 

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I think every company raises rates - its a matter of are you pleased with the coverage AND with the claim service. Also - be sure to compare similar coverages as you can get cheaper rates but coverage may be less and/or deductibles higher. I don't do comparison shopping every year but I DO review my coverages to ensure that there is enough to cover a total loss (hope it never happens). Most policies have inflation built in where the coverage goes up but in a time of high inflation, it may not go up enough. I've also been is a situation where the coverage has been too high.

Of course here in FL, some companies are not writing policies if your roof is over a certain age. The new FL law only protects a roof to 15 years old if I recall correctly. The first insurance company I had here dropped my policy because the roof was 11 years old AND I had trouble finding a company that would write a new HO policy on a roof older than 9 years. Increasing premiums are a lot easier to put up with than a new roof.

Tough question.

Remember, cheaper rates are only good if you DO NOT have a claim. A lot of people would pay more for a nationwide(not Nationwide the company) company which has good service as opposed to some of the mostly Florida based insurance companies.

Your agent can tell you the names of the companies who do provide best customer service. Make sure that you do buy your insurance from admitted company. Some companies are surplus lines companies. These companies do not need to follow all of the Florida laws.

With the basic info you supplied I would stay with your current insurance company. Surprised your rates have not gone up much higher(20%+)

Computers have no loyalty and Insurance Underwriters(bean counters) have slightly(but not much) more loyalty.

Consider yourself lucky if you're only getting a minimal increase. Florida, and everywhere else are getting hit very hard on homeowners renewals due to the increases in catastrophic claims in the last few years.

With all of the money insurance companies collect for both home and auto policies, I find it very difficult to believe that they aren't rolling in money.

Far as insurance and cost. You are buying insurance as a fee to have others share your risk.
You can self insure assuming you do not have a mortgage or a car loan. The people holding your mortgage or car loan will demand you have insurance.

Cost of insurance can be reduced by you increasing the deductible. In other words you are self insuring the first whatever number you select.

Companies have a rating, How easy they are to deal with if you have a claim. What you are paying for in insurance is others sharing your risk. If, the company has a reputation for not paying, they can of course be cheaper. They are not all the same.

Staying with a company. People tend to think I am a good customer been with them for 12 plus years. The reality is it is a very competitive industry. The company will likely offer lower rates to attract new customers than to existing customers.

Like any other business they are there to make money. Far as what they make most insurance companies issue stock. You can if you wish buy stock, accept part of the risk and perhaps get some profit out of your investment. As a publicly traded company, PROFIT, LOSS are all public information.

Is it fair to adjust insurance premiums according to your credit rating ?

Apparently those of us with higher credit ratings have less claims than those with lower.

Since they are in business to make money they charge accordingly.

I think it is fair. People with a lower credit rating are more likely to file an insurance claim.

No I don't think credit scores have any business in premium setting. I for one, don't know and couldn't care less what my score is. I bought a seller financed home in 2006 and nobody ran my credit. Haven't needed my score in 40 years. Those three reporting outfits are major league scammers if you ask me.

insurance
 

you do know in Florida - you get the balance of your premium back if you switch ?


you can get quotes ANYTIME

scores do count
 

maybe not in 2006 but yes now they do.