Misconceptions About Changing Insurance Companies
Perhaps you’re not satisfied with the service you’re getting from your current insurance provider and want to find better alternatives. However, you might feel uncomfortable changing your provider because of some reasons. You must ensure that the cause is not simply one of the many misconceptions about changing insurance companies.
This post will discuss three common misconceptions about changing insurance companies.
Common Misconceptions About Changing Insurance Companies
Remaining with One Company Earns You Higher Rates
According to popular opinion, sticking with the same insurance carrier means lower rates. In some circumstances, this may be true.
Perhaps you’re a devoted customer who saves money by combining your home and auto insurance policies. However, the hefty initial coverage cost you’re paying will likely offset any savings.
Re-shopping is Time Consuming
The most common reason policyholders don’t re-shop is that they believe it takes too much time. In actuality, nothing could be further from the truth. If you have your existing policy declarations page available, re-shopping can take as little as five minutes.
When you re-shop, it’s all about lowering rates
You’ll need to re-shop your home insurance if the insurers are not renewing your policy. Also, people consider re-shopping if the company will exclude a certain risk in the next term.
Due to the industry’s shrinking profit margins, companies take less risk in areas where disasters are common. Several insurance firms, for example, may either exclude wildfire damage from coverage or refuse to insure homes in wildfire-prone areas. In coastal areas, wind and hail exclusions, as well as roof exclusions, are common.
If you recently learned of a policy exclusion at renewal, compare your coverage to other policies. It might be worth getting comprehensive coverage somewhere else. Paying a little more to ensure your home is wholly insured is usually worth it.
