Seeking Advice on Improving Our Insurance Experience and Reducing Costs
We currently have our home and auto insurance bundled through the agency affiliated with our credit union mortgage. Each year, they consistently delay sending our annual escrow payment to the insurance broker until the very last moment. This has resulted in us receiving warning letters from our mortgage company, threatening to secure insurance for us at whatever rate is available, due to our payment not being made on time. I suspect that the agent may be profiting from interest by holding onto our payment for an additional month. Is this a common practice?
We have never missed a monthly payment that combines our mortgage and home insurance, and our credit rating is strong (800+). Am I justified in feeling frustrated with our insurance agent or agency? What options do I have? I hesitate to explore other possibilities because we relied on this agency/Progressive to meet our needs.
Additionally, our auto insurance rates have significantly increased since we first switched to this agency. As retirees, we only drive about 3-5 miles a day for errands and to take our grandchild to preschool. Last year, we experienced a total loss on our 2003 car due to a deer accident, which cost $2,600. After checking with our 55-year-old daughter, I found out she pays less for her home and auto coverage with AAA.
I’m looking for lower rates and better service, but I’m unsure where to start. I worry about making a mistake and ending up underinsured or taken advantage of. I thought Progressive was the best choice. Any advice would be greatly appreciated!
It sounds like you’re navigating a frustrating situation, and it’s understandable to feel upset when your insurance needs aren’t being handled properly. Here are a few steps you can take to potentially improve your service and reduce your coverage costs:
Communicate with Your Current Agent: Start by having an open conversation with your agent about your concerns. Express your frustrations regarding the late payments and ask for clarity on their payment processing procedures. They may not be aware of how this is impacting you.
Review Your Policy: Take a close look at your current home and auto insurance policies. Make sure you understand the coverage limits and deductibles, and determine what you really need versus what you might be overpaying for.
Get Quotes from Other Providers: It’s a good idea to shop around. Obtain quotes from multiple insurance companies to compare prices and coverage options. Consider using online comparison tools or contacting local agents for personalized quotes.
Ask about Discounts: Inquire about any discounts you might be eligible for with your existing provider or new ones. Many insurers offer discounts for things like bundling policies, safe driving records, or being a senior.
Consider an Independent Agent: If you’re feeling overwhelmed, an independent agent can help you find the best coverage and rates for your specific situation by working with multiple insurers.
Assess Your Coverage Needs: Given that you are retirees with minimal driving, you may benefit from reevaluating your auto coverage. For example, if you don’t drive much, consider switching to a usage-based insurance policy that could save you money.
Talk to Your Mortgage Holder: If you’re feeling like your insurer is not meeting your expectations, discuss the situation with your mortgage holder. They may have recommendations or alternative partners who offer better service.
Keep Documentation: Document any communications you have regarding late payments and coverage issues. This can help if you decide to escalate your concerns or change providers in the future.
Don’t Fear Change: While it’s natural to be apprehensive about switching insurers, remember that finding a better match for your needs is important. Many people find considerable savings and improved service after exploring their options.
Switching insurance can feel daunting, but taking these steps can help make the process smoother and potentially lead to better rates and service. Good luck!