Should I change my home & auto insurance?

[toolbelt diva]

We have Amica too and our rates are a little higher than with some other insurance companies probably because windstorm coverage is provided by Amica themselves and not the Texas state pool. If it pertains to you, we've heard from neighbors that Amica has a great reputation for paying out hurricane damage claims in two weeks unlike the others.

[toolguy1000]

just be sure the underwriter is financially sound and the policy is written to cover the replacement of damaged property with no cap on the cost. we are close to moving all our insurance from state farm to chubb. it's quite a bit more expensive, but the coverage is superior. price only insurance decisions can be dangerous.

[Ashkeymeadow]

The above comment are mostly wrong! What is true is that loyalty goes in one direction. I have been an Independent Insurance Agent for over 40 years (also known as an insurance broker), and I can tell you there are no free lunches. You can cut your premiums down by shopping, but the problem is that most people don't know what they are shopping for. One size fits all is not going to serve you well if you have sizable assets. A low collision deductible may be good for the person who write a check for repairs without any pain, but for some it could mean not eating next week. Only an agent who works for you can give you the kind of advise you need. "Direct writing companies" have agent who represent their interest, not yours.

Insurance advertising is less than honest! Look at those companies who have advertised the most in the past 40 years, and you will see the biggest insurers. State Farm didn't become the biggest because they are the best; they advertised the most - "Like a good friend" has been around since I was a boy. The State of California fined them heavily after the Oakland fire, and Mississippi had to sue Allstate and State Farm to get payments after Katrina. Have you ever noticed that just about every company advertises that they will save you money. That can't be true, but it gets people to call them. Ten years ago, GIECO was a very small company that offer insurance to only government employees. Warren Buffett owns Berkshire Hathaway, and it owns GIECO. They spend over a billion dollars a year on advertising. Berkshire Hathaway also owns Justin Boots, but they don't advertise that they will save you 15 percent on boots! Maybe they could if they only made size 9. Warren Buffett is one of the richest men in the world. Do you really think you are going to outsmart him?

Try to fully understand what your policies provide. Get advice from someone who is not beholding to an insurance company.

[Shep]

Speaking from expericiene and working with State Fam and Nationwide, I would recommend only those two. All insurance companies change rates from time to time. What has been happening in the industry in the last 5-10 years is this. One company will decided to drop their rates to try to lure new business away from the other companies. After about a year a the lower rates, the prices sneak back up to normal levels. Each company then in turn does their own variation of this and makes it seem like other companies are sometimes cheaper, but not in the long run. I can speak from experience that an Agent does have the customers best interest in mind. If they didn't the customer would go somewhere else to save a couple bucks.

Also, keep in mind that no two insurance companies have the exact same coverage. There are properties state farm can't insure, but nationwide can and vise versa. I recently switched some insurance from my Dad's State Farm agency to my FIL's Nationwide agency. Nationwide recently went through the temporary price reduction and it only made sense for us to switch because we know the agent. However, we couldn't switch everything because state farm was cheaper in other areas including life insurance.

Just some info to ponder.

I would personally stay away from the "virtual" insurance companies, ie progressive, geico, etc. They can save you money on the policy but are not the greatest IMHO in handling claims.

I work for a large Rental car company and also know the headaches customers go through with the virtual company. It's a lot harder to get a straight answer and oftentimes the customer ends up spending more out of pocket for a rental because the insurance company wouldn't pay.

[woodturner]

Speaking from expericiene and working with State Fam and Nationwide, I would recommend only those two.

To a degree, choice of insurance company is largely a "religious argument" - a subjective opinion based on anecdotal information. Personally, I would avoid all the "mass market" insurance companies - State Farm, Nationwide, Allstate, Geico, etc. The advertising they do costs a LOT, at huge cost to the policyholder. In addition, they are very difficult to deal with in settling claims. Some of them do OK with claims by their policyholders, but they are poorly rated in settling "victims" of their policyholders. As a result, their policyholders are much more likely to end up in litigation over an auto accident, for example.

Pricing of insurance varies by state - some states set the rates for insurance.

Also, keep in mind that no two insurance companies have the exact same coverage.

I'm not quite sure what you mean, here - any insurance company that writes insurance in your state can offer identical coverage. For example, most homeowner's policies are the same form, with identical coverage for the base policy.

My father was an independent insurance agent, CPCU, and CLU, so I will acknowledge some bias towards independents. However, based on my personal experience, I have always found that independent agents beat the prices of the "mass market" companies, often for better coverage.

It is a good idea to review your policy annually with your independent agent - often programs do change, so that they can save some money by switching programs, often with the same company. The benefit of staying with the same company is significant discounts.

Independents will often place you with companies whose names you may not recognize - but they are often the bigger, more stable insurance companies. Travelers, CNA, Safeco, and GenRe are all big, stable insurance companies, with good claims practices and good rates.

[jadecraft]

If your rates keep increasing dramatically for no reason, you should definitely be looking for free auto insurance quotes from other companies. Try The Hartford, we’ve been with them for over a decade now and they’ve kept their claims reasonable even though we have full coverage, have made a couple of hefty claims and the addition of a new car and a teenage driver to our policy.

[Rand]

We switched to insurance from Hartford offered through the AARP. I'm paying roughly half of what I used to through Allstate. I haven't had any claims but Marlene has and they have treated her just fine. http://www.aarp.org/benefits-discoun...ance-products/

[dbhost]

Moderators note:

Folks, we are steering close to the line here on SPAM in this discussion, although I believe unintentionally... As a reminder, as a rule, unless you are a sponsor, if you have a vested interest in a company or business web site, please refrain from posting links to it.

[Woodshark]

Thank you all for your comments and suggestions. As per suggested I plan on looking at a couple of the big guys and also get quotes from an independent insurance agent.

[Tom Slick]

I've been with Allstate for 16 years with them covering Home and Auto. When I shop around the other companies aren't in the same ball park as far as price. Some of the big "we'll save you money by switching" companies are more than double what I pay now for the same coverage.

I'm not suggesting you switch to Allstate, my point is I've been with that company so long that they are discounting my insurance premium. Don't be surprised when other companies are quite a bit more expensive.

[cabinetman]

If you believe the advertising, any company will save you $350. Before Katrina our homeowners was about $900. After Wilma, it went to $4200. Not much if any choice in Florida. Cost of the insurance depends a lot on the age of the house, and the cost per sq ft. to rebuild.

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