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.
You are right, loyalty is meaningless. I always shop my insurance every year . A few years ago, I found a large insurance agency that found a better solution . I will remain loyal as long as they continue to solve my problem.
I am loyal to value. I want the best coverage at the lowest price with good customer service. If you lack too much in any of those, expect me to go elsewhere.
You’re right no here… You would think it would be different, but with insurance companies, it is always important to shop around. Something that I admit that I need to do more of.
I have been guilty myself in the past, but I learned that a little work can save a lot of money.