How much can we expect insurance quotes to change during the signing process?
To give you some context, we’ve been with a smaller insurance company for over five years for both home and auto insurance. Despite having no claims, accidents, or tickets, our rates have been steadily increasing. Currently, we’re paying $7,900 a year for our home and two vehicles.
I recently consulted with a broker who provided a quote from Travelers for the same coverage, but at just $4,000 a year. That’s nearly half the price! It seems unbelievable. I was already considering switching if the savings exceeded $1,000, but I’m hesitant to start the process only to find out the actual cost is more like $7,500 instead of $4,000.
It’s understandable to be cautious when you see such a significant difference in quotes! Insurance rates can vary widely between companies due to factors like underwriting practices, regional risks, and even customer demographics. The quote you received might be accurate, but it’s essential to ensure that you fully understand what’s included in the coverage.
Here are a few steps you can take to verify the quote:
Review Coverage Details: Make sure that the coverage levels, deductibles, and any additional endorsements are identical or very similar between both policies. Sometimes a lower quote may reflect less coverage or higher deductibles.
Ask About Premium Changes: It’s a good idea to ask the broker if the quoted rate has historically increased after signing or if there are any known factors that could lead to increases in the future.
Get It in Writing: Request a detailed breakdown of the quote in writing from the broker. This can help protect you in case there are discrepancies later.
Check Financial Ratings: Research the financial stability and customer service reputation of the new company. It’s important to go with a company that is reliable and responsive.
Contact the New Insurer: Consider reaching out to Travelers directly to double-check your quote and clarify any concerns you have.
Switching insurance can lead to significant savings, so if everything checks out and you’re comfortable with the new provider, it may be worth making the change. Good luck!