I recently had two major insurance changes, and it reminded me of how important it is to shop around when renewing or finding a new policy.
Since I was 16, I had paid my parents for my part of the car insurance. I was always paying my own way, but I had never shopped around for my own policy. My Dad recently decided to kick me off and force me out on my own.
First, I called the company I was using for my renter’s policy for a car insurance quote. I also called the company that I had been using for a quote. I compared the two and asked for apples to apples policies so I could get a fair judgment on the price. It turned out my original car insurance company was significantly cheaper so I stayed there.
Just a few months later, I was getting ready to buy my new condo and had to shop for insurance again. I called the same two companies I was already working with that had quoted me for the auto policy. Much to my surprise, the company I had my renter’s policy from was cheaper than the company my auto policy was from even with a bundle discount.
This exercise taught me that brand loyalty means little in the insurance industry. Just like when you search online for a plane ticket, you need to shop around for insurance policies with good coverage for a fair price.
In addition to auto and home coverage, it is important for young people to have adequate life insurance coverage too. You can get much better rates on a valuable policy if you sign up when you are young.