Is it bad to switch insurance companies every year? Is there any penalty?
I’m referring to auto, homeowner, and landlord/fire insurance.
I vaguely remember Clark saying that switching every year could be looked at negatively, but I’m not sure.
Not sure of the implications of switching too often, but many insurance companies have a record of abusing loyal customers by gradually edging up their premiums every year.
I am not switching every year now but for years I would take bids from qualified carriers for like kind coverage every year and then go with the low bidder.
I never encountered any negative consequences.
I am currently with Auto Owners for vehicle, home and umbrella and they have been consistently low on the bid list.
Taking adverse actions against consumers who take bids for insurance and switch often might be a violation of the federal antitrust laws.
“Essentially, these laws prohibit business practices that unreasonably deprive consumers of the benefits of competition, resulting in higher prices for products and services.”
My independent insurance agent shops my homeowner’s annually. I don’t change that often, but every few years it pays. I shop my auto every few years but now getting great rate from Progressive.
Yea, my independent agent checks several other companies each time I ask him; maybe every few years - I’m very happy with the one that I have had for several years cause it offers me REPLACEMENT value at a reasonable premium. After all these years, I have finally learned how to read and interpret the various policies that I have (and need) Homeowners / Auto and Liability Umbrella - I’m not dumb but that Un & Under Insured Motorist Excess Coverage (Georgia) on my Umbrella took me awhile to comprehend.
Not unless the various insurance companies are coordinating with each other.
Thanks everyone for the replies!!
I guess I’ll continue to shop yearly. There doesn’t seem to be a downside to it if I’m willing to do the shopping and switching. I guess this is an area where it makes sense to shop. Kind of like Clark says about mortgages, the more you shop, the better off you are. But it’s not as fun as shopping for clothes, so people don’t do it!