Switching Insurance Companies After Making Claims
I recently lost my home and car due to the Palisades fire and ended up filing two claims—$32,000 for renter’s insurance and $25,000 for my car, both with Progressive. The claims process went smoothly, and I was initially inclined to continue with Progressive for my new renter’s and car insurance. However, I found more competitive rates with other companies. My renter’s insurance costs have doubled with Progressive, and insuring my Tesla through them is about $400 more annually compared to insuring it directly with Tesla.
I’m curious about the potential impact on my insurance profile if I decide to switch after making two claims. A friend mentioned that it’s wise to stick with the same company and continue paying premiums. Should I remain with Progressive, or does it not really matter in the long run?
It’s understandable to have concerns about changing insurance providers, especially after experiencing significant losses. Here are a few points to consider:
Claims History: While you have had two claims with Progressive, your claims history is typically associated with the individual policyholder rather than permanently affecting your insurance profile. If you’re considering switching, being open and honest about your claims history when shopping around is important, but it shouldn’t be a significant barrier.
Loyalty Discounts: Many companies offer loyalty discounts for staying with them over time. However, if you find that other companies can provide better coverage at a more affordable rate, it might be worth switching, even if it means losing some discounts.
Price vs. Service: Since you’ve had a satisfactory claims experience with Progressive, consider whether paying a bit more for the peace of mind and service is worth it to you. Balancing cost with the quality of service is crucial.
Insurance Agency Practices: Your friend mentioned “feeding them money,” which might refer to the idea that staying with one insurer can facilitate better relationships and potentially more favorable terms down the line. However, switching frequently is common and sometimes necessary to find the best deals.
Long-Term Considerations: If you’re happy with the claims process and customer service from Progressive but find better rates elsewhere, you can always compare and see savings. It may be wise to monitor prices for both renter’s and car insurance annually, as rates change.
In conclusion, if the price difference with other companies is significant, it may be worth switching. Just be sure to carefully review the new policies to ensure they meet your needs. Ultimately, it’s important to find an insurer that balances both cost and quality of service for your specific circumstances.