How much do new insurance quotes typically increase when signing a policy?
Here’s my situation: We’ve been with a smaller insurance company for over five years, covering both our home and auto. Despite having no claims, accidents, or tickets, our rates keep increasing. Currently, we’re paying $7,900 a year for our home and two cars.
I recently consulted a broker, who provided me with a quote from Travelers for the exact same coverage—$4,000 a year. That’s nearly half the price! It feels hard to believe. I was already considering switching if I could save over $1,000, but I don’t want to risk starting the process only to find out the actual cost is closer to $7,500 instead of $4,000.
It’s understandable to be cautious about switching insurance providers, especially when you see such a significant difference in quotes. Insurance rates can vary widely between companies due to many factors, including underwriting criteria, risk assessments, and market conditions.
When you get a quote from an insurance broker, it should be a legitimate estimate based on your provided information. However, there are a few things to consider:
Accuracy of Information: Make sure all your details (coverage limits, deductibles, etc.) you provided to the broker are accurate and consistent with your current policy. Any discrepancies can lead to different pricing.
Discounts: The lower quote might include discounts that were not applied to your current policy. Check if these discounts are applicable to you and if they affect the overall coverage.
Final Pricing: Typically, insurance premiums can change slightly once you finalize the application, as the insurer may conduct a more thorough underwriting process. However, a drastic increase is unlikely if your information is the same and accurate.
Coverage Verification: Double-check that the quotes are indeed for the “exact same coverage.” Sometimes, seemingly minor differences in policies can lead to significant differences in pricing.
Reviews and Reliability: Research Travelers’ customer service, claims process, and reliability. The savings are great, but you also want to ensure that you’re with a company you can count on if you need to file a claim.
If you feel comfortable and the coverage looks solid, it might be worth proceeding with the switch. Just make sure to read the policy terms carefully before signing anything!