Posted: Fri Dec 21, 2007 4:04 pm Post subject: Insurance Company
Is it a good idea to change your insurance carrier every now and then? What are the benefits of staying with the same one forever versus, changing? How often should you change it, if you decide to go this route.
Is it a good idea to change your insurance carrier every now and then?
Hi dreamer! While I don't know if it's exactly a good idea to change your insurance company every now and then like you ask, it's certainly a good idea to review their rates and compare them with what other insurers are offering. You wouldn't know if the change would be a good idea until you looked into the alternatives.
Ideally when it's around renewal time of your current policy is probably best but there's nothing to prevent you from getting quotes whenever you want to.
The reason I say to do it then is it'd be a regular reminder to make that call or look online . Another plus is that it may well put you in a better negotiating position with your existing insurance company since you'd have another full year of coverage with them under your belt.
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What are the benefits of staying with the same one forever versus, changing?
Reasons to stay with the current one would vary from individual to individual but for some it's familiarity with them and how they operate. Others look to the convenience of having a rep or office close by they can pop into with any questions on their policy's coverage or to make a claim. I have family members that think getting insurance quotes online is a terrible idea even though they've never been on the net in their lives.
It can be as simple as your current insurer being the cheapest insurance available that you can get or best cover for what you pay. There's rarely one reason in my opinion to stay or go. Some leave because they feel their claim was mishandled or unfairly dealt (whether it in fact was or not) and take their business elsewhere.
I think the majority of people switch insurers to save money, but beware of not comparing like with like. Your company may have some kind of special features built into their policy the other doesn't or vice versa and it's easy to forget over time exactly what you are covered for. The deductible is especially important in my opinion.
Having the policy's paperwork close at hand when you're getting ready to sit down and sift through quotes is something I've always done. I find I need to refer to it often because this old brain ain't what it used to be.
No insurer will offer the exact same policy as another one, so you need to weigh up the pros and cons of both to make a decision. Before you make the leap, you can give your insurance company the chance to better or match what's on offer elsewhere by contacting them. You may find the smartest thing to do is stay right where you are.
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How often should you change it, if you decide to go this route.
Good question. I'm just a layman but to my knowledge there aren't any hard and fast rules on that, nor even a "should" really.
No doubt one of the lovely insurance professionals here will clarify this but I'd always thought that it would somehow go against you if you switched say for example every six months or less.
At the very least I'd imagined it'd be frowned upon by the insurance companies because they'd get you all set up only for you to jump ship within a short period of time. I'll look forward to hearing if that's the case or not too.
I don't actually have any logic for that assumption I just realized apart from thinking of the time wasted on paperwork LOL. Maybe there's a minimum length of time you have to keep a policy before canceling it? Help, professionals!!
That's about all I can tell you from my limited consumer's point of view. Please stay tuned for the pros to come by and help you out.
Hi dreamer, first of all, kudos!! You have raised a very important debate. Choosing the right insurance company is almost as important as choosing the right policy. Whenever we take out a policy, we normally commit ourselves to a long term relationship with the company. We expect, the agent…….. will become our best friend, the insurer……will soothe us at the time of trouble. And it really hurts when the trust breaks.
Switching is, indeed, a very important issue. And my friend, there is no harm in switching, especially when you can gain out of such deals, like-low premium or better benefits. But switching, for the only sake of it, may not be a good idea. You need to evaluate all the options available to you before altering your loyalty. The insurer may not even like the idea if you are a carrier-hopper. They may develop the fear that you'll switch over again at the slightest provocation. And this may prevent them form treating you as a premier customer, which would be bad for you as well.
However, I'm not professing the idea of sticking to one carrier for life. You always have the freedom to make things better for you. But changing now-and-then also may not be the best solution. Long term relationships do pay at-times.
There is no harm in shopping around, but never stop paying for the existing coverage before obtaining the new one. You can always ask for the reimbursement of the premium paid, from your ex-insurer after receiving the new one. _________________ Register Now to have your Insurance queries solved.
