5 Reasons Why You Should Shop Your Home and Auto Insurance
There are many reasons to shop around for your home and auto insurance. However, it should not be to save money only. Insurance companies are getting wise to the frequency at which consumers shop around their insurance and are introducing valuable features, benefits and credits to stem out constant flux. If you are not sure when you should shop your insurance, below are a list of reasons to consider a switch:
1) Major lifestyle changes are a valid reason. Marriage, divorce, a child getting licensed, a child moving out, starting a new business, retirement, etc. Your current insurance company may not have the most competitive pricing once these changes are applied to your account.
2) Purchasing a new home or if you decide to sell or rent. Again, the current insurance company may not be the most competitive based on your new home situation.
3) Change in net-worth or value of your assets. If your net-worth has increased significantly the current insurance company may not be providing you the broad coverage you now need. They may also not be able to provide you the coverage or policy limits your financial advisor, attorney or accountant are now recommending.
4) Change in the desired coverage. If you now want full glass, GAP or Agreed Value coverage on your vehicle you may need to change your insurance company. If you need workers compensation insurance or if you sit on boards or volunteer your time to associations or committees, you may want to switch to a different insurance provider.
5) Bad claim experience. If you find that your insurance company was uncooperative, lacking in communication, difficult to work with or any other reason and your insurance agent could not help you work through it - there is no reason you should torture yourself again in the future.
Ultimately, you should not shop your insurance frequently or even every year. You will lose out on valuable coverages, benefits, features; such as, accidental forgiveness, longevity credit, and price lock.
Your program should be reviewed annually but only shopped every 3 to 5 years. If you feel you need your program shopped, talk to your insurance agent about why you should or should not shop your insurance program. Your agent will have a good sense of what you can do with your current program and if having your program shopped is warranted.