How much do new insurance quotes typically increase at the time of signing?
Here’s my situation: we’ve been with a smaller insurance company for over five years for both our home and auto. Despite having no claims, accidents, or tickets, our rates have been climbing steadily. Currently, our home and auto insurance costs us $7900 a year for two vehicles.
Recently, I consulted a broker who provided me with an estimate from Travelers for the exact same coverage at just $4000 a year. That’s nearly half the cost for identical protection! It seems too good to be true. I was already considering switching if the savings exceeded $1000, but I’m cautious about starting the process only to find out the actual rate is closer to $7500 instead of $4000. What should I do?
It’s understandable to be cautious about switching insurance, especially when you see such a significant price difference. Quotes can sometimes vary widely based on factors like the insurer’s underwriting guidelines, discounts, and regional risk assessments.
When you receive an estimate from a broker, it’s usually based on the information you provided and their company’s current pricing. Before making the switch, here are a few steps you can take to ensure that the $4000 quote from Travelers is accurate:
Confirm Coverage Details: Double-check that the coverage limits and deductibles are truly the same as your current policy. Even slight differences can lead to significant price changes.
Ask About Underwriting: Inquire with your broker about what factors Travelers considers during their underwriting process. Sometimes a low initial quote can change upon final review, especially if certain criteria aren’t met.
Get Everything in Writing: Ensure that your broker provides you with a written quote, including any assumptions they made. This can protect you if there are discrepancies later.
Check Discounts: Ask if the quoted price from Travelers includes any specific discounts (e.g., bundling for auto and home, safe driver discounts, etc.) and whether you qualify for them.
Review Customer Feedback: Check online reviews or forums for feedback on Travelers and how consistent their quoting process is. Sometimes, customers have shared experiences that can provide insight.
Ultimately, if you feel confident in the quote after doing your due diligence, it may be worth pursuing the switch. Just make sure you understand all the details before finalizing anything!