I’m considering switching from State Farm. Currently, I have a $100,000 life insurance policy that costs me $51 a month. I discovered a $700,000 policy from Lemonade for $71.85 a month through Legal & General, which seems like a much better deal.
If I decide to leave State Farm, I’d also like to switch my full coverage auto insurance and homeowners insurance.
What’s the best way to approach this transition? Any advice would be greatly appreciated!
Before making any decisions about switching insurance providers, here are some steps you can follow to ensure a smooth transition:
Assess Your Current Policies: Review your existing State Farm policies, including life, car, and homeowners insurance. Take note of the coverage limits, deductibles, and any additional benefits or discounts you currently have.
Compare Coverage Options: While the Lemonade policy offers a higher coverage amount for life insurance at a lower rate, ensure that the terms, conditions, and the company’s reputation are satisfactory. Look into reviews and financial strength ratings for Legal & General.
Get Quotes for Car and Homeowners Insurance: Since you’re considering switching car and homeowners insurance as well, request quotes from several providers to compare coverage, premiums, and any discounts available for bundling policies.
Understand the Cancellation Process: Check with State Farm about their cancellation policy. Make sure to understand any potential cancellation fees and how to formally cancel your policies.
Avoid Coverage Gaps: Coordinate the timing of your new policies so that you don’t experience a lapse in coverage. It’s generally safest to have your new policies in effect before canceling your old ones.
Check for Discounts: Inquire about any multi-policy discounts for bundling your car and homeowners insurance with your new life insurance. You might save even more that way.
Consult with an Agent: If you’re uncertain, consider speaking with an insurance agent who can provide personalized advice and help you navigate the process smoothly.
Read the Fine Print: Before signing any new policy, thoroughly read the terms and conditions to ensure you understand the coverage, exclusions, and any potential increases in rates.
Making a change can provide better coverage or savings, so take your time to choose the best option for your needs. Good luck!