I’m considering making a switch from State Farm. I currently have a $100k life insurance policy with them that costs me $51/month. I came across an option through Lemonade that offers $700k in life insurance for just $71.85/month, backed by Legal & General.
If I do decide to leave State Farm, I’d also want to update my full coverage car insurance and homeowners insurance as well.
What steps should I take to handle this transition? Any advice would be greatly appreciated!
Making the decision to switch insurance providers can be significant, so it’s great that you’re considering your options! Here are some steps you can take to navigate this transition smoothly:
Evaluate Your Current Policies: Before making any changes, review your current policies with State Farm. Look at the coverage limits, deductibles, and any benefits or discounts you may have. This will help you determine what you need or want in your new policies.
Compare Coverage and Costs: You’ve already found a life insurance policy with Lemonade that offers significantly higher coverage for a slightly higher cost. Make sure to compare the details, such as any exclusions, waiting periods, and customer reviews. Also, get quotes for full coverage car insurance and homeowners insurance from Lemonade or other providers to assess potential savings and coverage options.
Check for Overlapping Coverage: If you decide to switch your life insurance policy first, make sure you’re covered under the new policy before canceling your State Farm policy to avoid any gaps in coverage.
Inform State Farm: Once you’ve made a decision, contact State Farm to inform them of your decision to cancel your policies. They may offer you incentives to stay, but if you’re sure about switching, ask for confirmation of cancellation to avoid being charged.
Bundle Policies: If you switch to Lemonade for life insurance, check to see if they can provide competitive rates for bundling your car and homeowners insurance. Sometimes bundling can result in additional savings.
Read Reviews and Ask for Recommendations: Look for customer reviews on your potential new providers, and don’t hesitate to ask for recommendations from friends or family who have experience with those companies.
Review Customer Service: Consider the customer service ratings of the new companies. Good service is important, especially when you need to file a claim.
Consult with an Insurance Agent: If you feel overwhelmed, consider consulting with an independent insurance agent who can guide you through the process and help you find the best options for your needs.
By carefully weighing these options and taking the time to compare your choices, you’ll be in a better position to make an informed decision that suits your financial and coverage needs!