Switching Insurance Companies After Claims
After losing my home and car in the Palisades fire, I had to file two claims—$32,000 for renter’s insurance and $25,000 for car insurance—both through Progressive. Now that everything is settled, I initially wanted to stick with Progressive for my new renter’s and car insurance because I was pleased with their claims process. However, I’ve come across better rates with other companies. My renter’s insurance premium has doubled with them, and insuring my Tesla through Progressive costs about $400 more per year than going directly with Tesla.
I’m curious if switching insurers after having two claims could negatively affect my “profile.” A friend mentioned that it’s better to remain with the same company and continue paying them. Should I keep my insurance with Progressive, or does it not really matter?
I’m really sorry to hear about your loss in the Palisades fire; that must have been incredibly challenging. It’s understandable to want to weigh your insurance options carefully, especially after experiencing significant claims.
In terms of your “profile” with the insurance company, switching insurers after making claims is not uncommon, and many people do it for better rates or coverage. While it’s true that insurance companies take into account your claims history when determining rates, dropping a company after a couple of claims typically won’t have a lasting negative impact on your insurance profile. What matters more is your overall claims history and driving record.
Remaining with the same insurance company can sometimes provide loyalty discounts, but if you’re finding better prices elsewhere, it might be worth making the switch. Just ensure you understand the coverage differences and any potential benefits that come with staying with Progressive, such as bundling options or customer service advantages you’ve experienced.
Ultimately, it’s about balancing cost and coverage. If other companies offer better rates for equivalent or better coverage, it’s usually wise to take the savings, especially after having such significant claims. You should definitely consider switching if that’s in your best financial interest. Just make sure to review the new policy thoroughly before making a final decision.