How do you shop for car/homeowners insurance?

[ThatGuy]

I'm not thrilled with the idea of calling a couple dozen insurance companies and going through all my information over and over again but I can't come up with a better way.  I know someone is going to suggest an independent insurance agency but they don't represent all of the insurance companies and they're going to promote whichever company is paying the highest commission.  How do you comparison shop for homeowners and car insurance?

[NoStacheOhio]

I'm not thrilled with the idea of calling a couple dozen insurance companies and going through all my information over and over again but I can't come up with a better way.  I know someone is going to suggest an independent insurance agency but they don't represent all of the insurance companies and they're going to promote whichever company is paying the highest commission.  How do you comparison shop for homeowners and car insurance?

While independent brokers don't represent all of the companies, the good ones don't just shove everyone to the highest commission. If you can find a good one, it's a great way to go. Ask lots of questions, and ask them to show the various options from a couple different companies. Cross shop independent brokers as well. Call two or three insurance companies yourself. It's still a little bit more work, but it's less than calling a dozen yourself, and worth the bit of time it takes.

Sometimes I'll get a quote on my own from another company (usually for "special employee rates" tied to my job), and it's always more than I'm currently paying. My family has been with the same broker for like 20 years, and he's always treated us well.

[Octotat]

Honestly, I've had State Farm forever.  There rates have always been reasonable, but the important thing is that they've REALLY done well by me when I've needed them.   And there was never a big crank up in rates after I've used them for some car or home damage.   That being said, I don't nickel and dime them, that really pisses off the insurers.

[ketchup]

I'll run a few quotes online and compare them, usually once a year or so.

[PKate]

I wound up going with the same company(Amica) my brother uses.   I contacted them about a quote because of the amazing customer service they provided my Brother and SIL when they had a major house fire and lost everything.  They had a great deal on a bundled package of home, auto, and an umbrella policy which was made the switch easy but good customer service goes a long way when you need to use the insurance.

[Sibley]

Suck it up and get multiple quotes. It takes a few hours, then is done for a year or so.

[HipGnosis]

I'll run a few quotes online and compare them, usually once a year or so.

Doing things online is certainly easier and quicker than when you had to call and talk w/ agents.
But every year is a bit over kill.  I do it every 3 yrs for vehicles and 5 yrs for home.

[slappy]

I'll run a few quotes online and compare them, usually once a year or so.

This is what I do. I'm actually lazy and I'll do one or two. If there seems to be a big enough difference between the quote and what I'm paying, I'll do a couple more and start investigating.

I just cancelled State Farm. Their rates are higher and their customer service has been declining for the past several years.

[ThatGuy]

I must be doing the online search wrong.  If I remember correctly when I tried searching online a few years ago all I got was vague answers and a lot of phone calls from agents.

[progman2000]

Honestly, I've had State Farm forever.  There rates have always been reasonable, but the important thing is that they've REALLY done well by me when I've needed them.   And there was never a big crank up in rates after I've used them for some car or home damage.   That being said, I don't nickel and dime them, that really pisses off the insurers.

I just left State Farm after at least 15 years. They were always good but I shopped around when my teenager got his DL and realized I was paying way to much in homeowners. I gave SF the chance to match rates I was getting but they fell pretty far short too.

I wished I had comparison shopped sooner. I spent thousands more than I needed to over those years.

Sent from my SM-N920V using Tapatalk

[aceyou]

Meemic

My wife and I are teachers, which Meemic caters to.  We bundle car (PLPD for both cars) and home.  Our car insurance is $360 per car per year.  I'm in Michigan...highest rates in the country, so I'm very happy with the rates. 

I had a day off teaching a few years ago and decided that for a few hours I'd send emails to representatives at a bunch of different companies.  Meemic won. 

It gave me a pit in my stomach when I realized how much I'd been overpaying. 

[kpd905]

State Farm was charging us over double what Geico does for our car insurance.  I've been with Geico for a couple years so it might be time to look around again, but we are only paying $50/month for two cars with full coverage.

[TheWifeHalf]

25 years ago I called 20 auto body shops (starting with my brother's) and asked them which insurance company was the best to work with, gave the least hassle, and which car insurance did they personally have.
I got 2 responses, consistently, and I have had them for all my insurances still today.
Auto, Home, umbrella.

[L8_apex]

25 years ago I called 20 auto body shops (starting with my brother's) and asked them which insurance company was the best to work with, gave the least hassle, and which car insurance did they personally have.
I got 2 responses, consistently, and I have had them for all my insurances still today.
Auto, Home, umbrella.

Are you going to tell everybody the names of those companies, or shall we just start guessing?

[TheWifeHalf]

25 years ago I called 20 auto body shops (starting with my brother's) and asked them which insurance company was the best to work with, gave the least hassle, and which car insurance did they personally have.
I got 2 responses, consistently, and I have had them for all my insurances still today.
Auto, Home, umbrella.

Are you going to tell everybody the names of those companies, or shall we just start guessing?

I will tell, since you asked. I was responding to the hassle involved in ME getting car insurance.

Auto Owners and State Farm

We have had State Farm ever since and have no complaints. I suspect our kids still have State Farm. When I made the calls, the body shops had no problem saying who was the worst, without me asking  Allstate. I have heard various stories over the years that make me glad we do not have them insuring anything we own. (Especially when the tornado touched down a few miles from here.

[TheWifeHalf]

We get a discount because we insure everything with State Farm. I don't know if it's the whole company or just this (I'm sorry, I cannot think of the word for the individual office we purchased from - brain injury) but if the kids went to a 2 hour meeting with him, where he talked about DISTRACTIONS, they also got a reduction in their payment.

[Novik]

I must be doing the online search wrong.  If I remember correctly when I tried searching online a few years ago all I got was vague answers and a lot of phone calls from agents.

Lots of places, especially brokers, will do this. But at least in my province, there's 3-5 insurers I can get quotes from online, and I choose to only give my business to those insurers. I did ask a broker for a quote before making this choice, and they were more expensive, with fewer options/clarity/control. Online I can play with the variables all I want to cut the cost.

But when you do this, make sure not to give your real name/phone number/main email/address unless you want a lot of spam.

[Thegoblinchief]

I’ll be honest in saying that I’m a customer for life with my current insurance company. I’ve had to make several auto claims and one home claim (burglary) and they were so incredibly helpful with all of them. Their rates aren’t the absolute cheapest but they’re below median from the times I have comparison shopped so I have no desire to switch unless the rates drastically change.

The company is West Bend (Wisconsin only as far as I know)

[NoStacheOhio]

I’ll be honest in saying that I’m a customer for life with my current insurance company. I’ve had to make several auto claims and one home claim (burglary) and they were so incredibly helpful with all of them. Their rates aren’t the absolute cheapest but they’re below median from the times I have comparison shopped so I have no desire to switch unless the rates drastically change.

The company is West Bend (Wisconsin only as far as I know)

Personally, I think this is the sweet spot for insurance. You generally don't want bargain basement rates.

[ThatGuy]

I have a magic jack phone number that I only give to businesses.  They can call it all they want, I never answer it and don't have the ringer turned on so it never bothers me. :)

I agree with NoStacheOhio and HarbingerofBunnies, I'm not necessarily looking for the lowest price, more a reasonable price with good/great service.

[AnnaGrowsAMustache]

Don't you have an online comparison somewhere that you can do? I have an insurance company that I'm happy with, but I'll sometimes call them with online quotes and ask them to match that and lower my premiums. They've never said no.

[dogboyslim]

Don't you have an online comparison somewhere that you can do? I have an insurance company that I'm happy with, but I'll sometimes call them with online quotes and ask them to match that and lower my premiums. They've never said no.

are you in the US?  US companies cannot vary their rates without filing them with the state first (or shortly thereafter).  They also cannot just change the rates for a particular individual.  If your company has said they are doing this, I'm curious which coverages or limits they have changed to "match" the premiums.

[HipGnosis]

Don't you have an online comparison somewhere that you can do? I have an insurance company that I'm happy with, but I'll sometimes call them with online quotes and ask them to match that and lower my premiums. They've never said no.

are you in the US?  US companies cannot vary their rates without filing them with the state first (or shortly thereafter).  They also cannot just change the rates for a particular individual.  If your company has said they are doing this, I'm curious which coverages or limits they have changed to "match" the premiums.

PTF

[AnnaGrowsAMustache]

Don't you have an online comparison somewhere that you can do? I have an insurance company that I'm happy with, but I'll sometimes call them with online quotes and ask them to match that and lower my premiums. They've never said no.

are you in the US?  US companies cannot vary their rates without filing them with the state first (or shortly thereafter).  They also cannot just change the rates for a particular individual.  If your company has said they are doing this, I'm curious which coverages or limits they have changed to "match" the premiums.

Nope, in NZ. I suspect something similar applies here, but all companies have different premiums here, for different coverage as you suggested, but also special rates for new customers or special deals for short periods etc etc. Pretty sure they just change me to the newbie rate or something. They might have a secret price match policy that you don't get unless you ask, who knows? All I know is that my coverage hasn't changed, my excess hasn't changed, and I'm paying less than I was before. Banks will do the same thing - if you have a better loan deal or CC deal with someone else, they'll match it. Sometimes. Stores will price match competitors as well, and also lower the price if you negotiate. Even our employer matched retirement savings can be moved around pretty much at will, to organisations that provide a better fee structure or whatever. All I can suggest is that NZ is an incredibly small, competitive market, and businesses need to work hard to keep customers.

[netskyblue]

I went through an independent insurance broker and asked for a quote for what I needed from various companies.  I'd had, and been happy with, State Farm for years, but I got MUCH cheaper rates switching to MetLife.  I'm paying $28.05/mo for car insurance and renter's insurance (liability, medical, and un/underinsured motorist only, no collision or comprehensive).  I do have a higher amount for liability than is required by law.  My car is 7 years old now, but it was 4 years old at the time I switched, and rates haven't changed much in the three years I've had them (talking in cents, not dollars).

[dogboyslim]

Don't you have an online comparison somewhere that you can do? I have an insurance company that I'm happy with, but I'll sometimes call them with online quotes and ask them to match that and lower my premiums. They've never said no.

are you in the US?  US companies cannot vary their rates without filing them with the state first (or shortly thereafter).  They also cannot just change the rates for a particular individual.  If your company has said they are doing this, I'm curious which coverages or limits they have changed to "match" the premiums.

Nope, in NZ. I suspect something similar applies here, but all companies have different premiums here, for different coverage as you suggested, but also special rates for new customers or special deals for short periods etc etc. Pretty sure they just change me to the newbie rate or something. They might have a secret price match policy that you don't get unless you ask, who knows? All I know is that my coverage hasn't changed, my excess hasn't changed, and I'm paying less than I was before. Banks will do the same thing - if you have a better loan deal or CC deal with someone else, they'll match it. Sometimes. Stores will price match competitors as well, and also lower the price if you negotiate. Even our employer matched retirement savings can be moved around pretty much at will, to organisations that provide a better fee structure or whatever. All I can suggest is that NZ is an incredibly small, competitive market, and businesses need to work hard to keep customers.

Okay. The behavior you describe would be illegal in the US for personal lines of insurance like auto/home.  I have no knowledge of NZ laws so I won’t say anything other than to warn US consumers that if their company says they have ‘matched’ premium, check your terms because they have probably changed something.

[AnnaGrowsAMustache]

Don't you have an online comparison somewhere that you can do? I have an insurance company that I'm happy with, but I'll sometimes call them with online quotes and ask them to match that and lower my premiums. They've never said no.

are you in the US?  US companies cannot vary their rates without filing them with the state first (or shortly thereafter).  They also cannot just change the rates for a particular individual.  If your company has said they are doing this, I'm curious which coverages or limits they have changed to "match" the premiums.

Nope, in NZ. I suspect something similar applies here, but all companies have different premiums here, for different coverage as you suggested, but also special rates for new customers or special deals for short periods etc etc. Pretty sure they just change me to the newbie rate or something. They might have a secret price match policy that you don't get unless you ask, who knows? All I know is that my coverage hasn't changed, my excess hasn't changed, and I'm paying less than I was before. Banks will do the same thing - if you have a better loan deal or CC deal with someone else, they'll match it. Sometimes. Stores will price match competitors as well, and also lower the price if you negotiate. Even our employer matched retirement savings can be moved around pretty much at will, to organisations that provide a better fee structure or whatever. All I can suggest is that NZ is an incredibly small, competitive market, and businesses need to work hard to keep customers.

Okay. The behavior you describe would be illegal in the US for personal lines of insurance like auto/home.  I have no knowledge of NZ laws so I won’t say anything other than to warn US consumers that if their company says they have ‘matched’ premium, check your terms because they have probably changed something.

Why is it illegal in the US? I don't get it. As a consumer, shouldn't I be able to negotiate on my own behalf. I'm quite sure there's legislation that governs the insurance industry, that you can't contract out of, but the price I pay is surely up to me???

Anyhoo, here's an NZ site that proves what I'm saying is correct:
http://www.myinsuranceguide.co.nz/tips-to-save-on-insurance/save-on-car-insurance/

"Negotiate, negotiate and negotiate. Insurance companies have been known to offer deals in order to win a customer’s business over the competition. If you want to stay with your current car insurance provider, inform them of quotes you have received for cheaper car insurance from other providers. Ask them to match your quote. They will generally comply to prevent you from moving your car insurance policy."

The site is for car insurance, but I can tell you that contents insurance is similar. House insurance is a changing area in NZ after several huge quakes. Lots of court cases still going on 7 years after the fact, and the insurance industry has changed how they operate on lots of points.

[dogboyslim]

Why is it illegal in the US? I don't get it. As a consumer, shouldn't I be able to negotiate on my own behalf. I'm quite sure there's legislation that governs the insurance industry, that you can't contract out of, but the price I pay is surely up to me???

In the US, the regulatory system around insurance requires the insurance companies to file the specifics of the prices with the state insurance department.  There are specific laws that require that similarly situated individuals cannot receive different rates from the same company/program.  This is based upon the definition of rate as being related to the expected cost of insuring that individual.  If the company were to "match" the premiums of another company, they would be charging premiums that deviate from their filed rates, which is a violation of the state law.  They could not easily change your characteristics to a new client either unless they cancel your policy and re-write you to a new policy which may or may not have the same provisions as your previous policy.  To "match" premiums, the insurance company will need to change a limit, deductible, coverage, or they will query you to see if you qualify for discounts that you have not previously had applied.

[jscott2135]

I price check 3-6 companies every 2 years. But Ameriprise through Costco has always come in cheapest and with our membership we snag an additional discount. 

[JLE1990]

I price check 3-6 companies every 2 years. But Ameriprise through Costco has always come in cheapest and with our membership we snag an additional discount.

This what I recommend to my clients and I happen to work in insurance(State Farm). Rates are constantly changing(I'd say based on 50% credit report 25%driving history 25% location) even if you're sure you have the best rates it is good to check around every couple years.

Obviously I have bias but it is important remember that it's not about rates. I usually explain it using restaurants, sure Mcdonald's is cheaper but are you going to go there instead of a nice pub burger? Never mind, mustachians don't eat out lol But State Farm, USAA and a couple others have very high consumer ratings. With Geico if the situation doesn't fit exactly what is in the policy, it is very possible they will not pay out your claim of several thousand. Then it's not really saving you money.

And one more thing to point out about mutual companies(State Farm, Liberty Mutual) is that for their better drivers they do not make profit off of them. Any premium that the company collects that doesn't go into claims is not simply profit but is reinvested in the company or sent back to insureds in the form of a dividend. This year is the first in awhile I've heard they're doing it in Auto because it's not very lucrative, usually they bring in only 2-6% more premium then is paid out in accidents.

[AnnaGrowsAMustache]

Why is it illegal in the US? I don't get it. As a consumer, shouldn't I be able to negotiate on my own behalf. I'm quite sure there's legislation that governs the insurance industry, that you can't contract out of, but the price I pay is surely up to me???

In the US, the regulatory system around insurance requires the insurance companies to file the specifics of the prices with the state insurance department.  There are specific laws that require that similarly situated individuals cannot receive different rates from the same company/program.  This is based upon the definition of rate as being related to the expected cost of insuring that individual.  If the company were to "match" the premiums of another company, they would be charging premiums that deviate from their filed rates, which is a violation of the state law.  They could not easily change your characteristics to a new client either unless they cancel your policy and re-write you to a new policy which may or may not have the same provisions as your previous policy.  To "match" premiums, the insurance company will need to change a limit, deductible, coverage, or they will query you to see if you qualify for discounts that you have not previously had applied.

Huh. I don't really understand why it should be illegal to have people in the same circumstances on different rates. You can sort yourself out a different price for a product in pretty much any other area, can you not? I don't really see how the US system protects the consumer. It sort of seems like price fixing and protective of the insurance organisations.

Is it common in the States to shift around credit, insurance cover, banking, electricity, ph etc to other organisations? Because it's very common here. And very simple. Just a phone call usually, and the new company will take care of all the details.

I guess also that we're so small that we can easily have a central legislative base for insurance, and that has all the basic consumer protections covered.

[dogboyslim]

Why is it illegal in the US? I don't get it. As a consumer, shouldn't I be able to negotiate on my own behalf. I'm quite sure there's legislation that governs the insurance industry, that you can't contract out of, but the price I pay is surely up to me???

In the US, the regulatory system around insurance requires the insurance companies to file the specifics of the prices with the state insurance department.  There are specific laws that require that similarly situated individuals cannot receive different rates from the same company/program.  This is based upon the definition of rate as being related to the expected cost of insuring that individual.  If the company were to "match" the premiums of another company, they would be charging premiums that deviate from their filed rates, which is a violation of the state law.  They could not easily change your characteristics to a new client either unless they cancel your policy and re-write you to a new policy which may or may not have the same provisions as your previous policy.  To "match" premiums, the insurance company will need to change a limit, deductible, coverage, or they will query you to see if you qualify for discounts that you have not previously had applied.

Huh. I don't really understand why it should be illegal to have people in the same circumstances on different rates. You can sort yourself out a different price for a product in pretty much any other area, can you not? I don't really see how the US system protects the consumer. It sort of seems like price fixing and protective of the insurance organisations.

Is it common in the States to shift around credit, insurance cover, banking, electricity, ph etc to other organisations? Because it's very common here. And very simple. Just a phone call usually, and the new company will take care of all the details.

I guess also that we're so small that we can easily have a central legislative base for insurance, and that has all the basic consumer protections covered.

I want to be clear.  There is no prohibition against moving from company 1 to company 2, but company 1 cannot just "match" the prices of company 2.

[merula]

Re Price Matching: You're both right.

It is correct that, in the US, insurance carriers must file their rates with individual states for the coverages those states require to be filed. Personal auto and Homeowners coverage are two that are almost always regulated, but the individual regulations depend on the state. The purpose of these regulations is to protect the Average Joe from the Big Bad Insurance Company.

However, there's also almost always some "wiggle room" allowed in the filed rates. Something like "+/- 10% factor may be applied based on risk characteristics not otherwise addressed". So, for example, if you told your insurance company that you biked everywhere and only drove your car 1,000 miles/year, where the rating model assumes 15,000 miles/year, they could use that factor to adjust the premium. However, they may not do that if there was already a "low mileage" credit applied. And they can only do this where the rate plan approved by the state allows for things like this.

Like most other businesses, insurance companies want new customers. They understand that things are competitive and will make adjustments in pricing to the extent that they're legally allowed to if you ask.

BUT, if you live in a state that has very strict regulations, it's possible that they didn't approve a "wiggle room" factor like that (or possible that the insurance company decided not to try to file something like that because it's a PITA to file those things). In that case, calling up might get your agent re-examine your file for anything you qualify for that you're not already getting, or they may say something like "well, I can't do anything with the coverage you have, but you're paying $100/year for roadside assistance. Do you need that if you're not driving much?"

Source: I work for an insurance company. Part of my job is working with the legal requirements and state filings, although my focus is commercial insurance.

[AnnaGrowsAMustache]

Re Price Matching: You're both right.

It is correct that, in the US, insurance carriers must file their rates with individual states for the coverages those states require to be filed. Personal auto and Homeowners coverage are two that are almost always regulated, but the individual regulations depend on the state. The purpose of these regulations is to protect the Average Joe from the Big Bad Insurance Company.

However, there's also almost always some "wiggle room" allowed in the filed rates. Something like "+/- 10% factor may be applied based on risk characteristics not otherwise addressed". So, for example, if you told your insurance company that you biked everywhere and only drove your car 1,000 miles/year, where the rating model assumes 15,000 miles/year, they could use that factor to adjust the premium. However, they may not do that if there was already a "low mileage" credit applied. And they can only do this where the rate plan approved by the state allows for things like this.

Like most other businesses, insurance companies want new customers. They understand that things are competitive and will make adjustments in pricing to the extent that they're legally allowed to if you ask.

BUT, if you live in a state that has very strict regulations, it's possible that they didn't approve a "wiggle room" factor like that (or possible that the insurance company decided not to try to file something like that because it's a PITA to file those things). In that case, calling up might get your agent re-examine your file for anything you qualify for that you're not already getting, or they may say something like "well, I can't do anything with the coverage you have, but you're paying $100/year for roadside assistance. Do you need that if you're not driving much?"

Source: I work for an insurance company. Part of my job is working with the legal requirements and state filings, although my focus is commercial insurance.

It's so interesting how differently the US does things to what I would consider "normal" practice! Not better or worse, just different for a different type of market.

[Ozymandiaz]

I'll run a few quotes online and compare them, usually once a year or so.

I used to check my auto insurance almost every year, and switch if necessary. Then I got a very good deal many years ago, and also got lazy. I started assuming it was still the best deal to justify just paying the bill every 6 months. I keep telling myself I should check around. Maybe this time I will. No sense in wasting money. :)