We are in the process of moving from the Chicago burbs to NW Indiana. In short: we are thinking about changing insurance carriers for auto and home. But we are finding it very difficult to compare the various companies. Do you have any thoughts/experiences which might be useful?
In long: we had home and cars insured with State Farm for 25 yrs or so. We were always pleased with the service from our agent, and the rates seemed fair. Upon moving here, our car insurance is higher - despite having all of our minor kids off the policies, and they gave us a quote for the home we are buying which was nearly 4x what we paid on our old one.
So we’ve gotten a bunch of quotes, which range from $1,400 to $4,100. Other than price, how would you choose between companies such as MetLife, Safeco, Selective, and Travelers? (State Farm was around $3,700).
We don’t need to go with the cheapest rate, and will pay SOME premium for service. But I’m not sure what service would be worth 3x the premium.
Disclosure: I worked in advertising, and had one of the major insurance companies as a client for a number of years.
First of all, make sure that you’re comparing apples to apples – I’ve seen companies that will give you a quote, but won’t exactly match what you asked for (deductable, coverage level, etc.), in order to low-ball you.
Most of the major, “full-service” insurance companies are pretty good (or, conversely, are equally bad). You can find bureaucratic horror stories from customers of any insurance company, as well as stories about how they were helpful. A lot will depend on how good your local agent is, as well.
Of the ones you list, I’d probably be pretty indifferent between MetLife, State Farm, Travelers, and probably Safeco (which is now owned by Liberty Mutual). I’m not familiar with Selective; what I can see online suggests they’re a smaller, regional player.
I really do the “shopping around” thing. I go to local store-front agencies, where I can actually walk in (with an appointment) and talk to an agent about my needs. I’ve done this a fair bit, and, before long, I met up with one who…
a) met my emotional needs: was friendly, cheerful, honest, comfortable;
b) actually answered my questions, and was willing to take time to explain;
c) showed me charts that really did compare prices on an “apples to apples” basis.
As it turned out, I got my renter’s insurance from him. Every year, I let him pitch auto insurance to me, but, so far, another agency has the same coverage for less, so I haven’t switched. I give him a fair chance, and he’s completely cool with that.
Once you find someone you can trust, and whom you like…keep on comparing anyway!..but give that guy as much of your business as you can.
Yes, it is hard to make sure you are comparing apples to apples. Also seems as tho across the board insurance is pricier here than where we lived before. Which suggests to me there must be some actuarial basis. But you think you can get a direct answer to a direct question… :rolleyes:
Do you have the option of using an insurance agency instead of dealing directly with the insurance companies? I get all of my policies through a large but good one here in Massachusetts. I don’t even worry about the insurance companies themselves. They document all of my needs and then find the companies that offer it for the best rate. They do a yearly review to make sure I am still getting the best price and will give me the option to switch companies for say car insurance if they notice a significant savings can be achieved. It doesn’t cost me anything at least directly and it is a very personalized service. I assume they still have reputable full-service insurance agencies in most areas of the country.
most home owner policies are pretty similar, with the only real difference usually being the policy lmiits and whether it covers “guaranteed replacement cost.”
Car insurance varies more. Whatever you do, by as much UIM coverage as they allow. It’s the most valuable part of the package in terms of helping you out when something really bad happens. (hit by an uninsured or under insured driver).
No thoughts on insurance, except echoing using an agency for full comparison.
But - welcome to NWI. It’s great here…kinda. It’s a total hijack, but as a lifelong resident who’s itching to get out of here - why would you move here?
I’ve been in insurance for almost 20 years, which is probably why I don’t use an outside broker unless I have to. When it comes to the major companies, there isn’t a whole lot of difference. (Except State Farm which is pretty notorious for being hard to deal with when it comes to claims)
As long as the coverage is the same, price is a good way to judge who to go with.
If your eligible, USAA always gave me the best rates and service.
Not sure why you’re rolling your eyes at the replies you received when you presented an open-ended question, “Do you have any thoughts/experiences which might be useful?”
I don’t know that market in particular, but yes rates can change dramatically based solely on zip code. Natural disasters, crime rates, etc all have huge impacts on rates.
He’s rolling his eyes at the insurance agents who won’t give him a straight answer.
Thanks, MJ. It seems if premiums are higher, the insurers must think there is a higher risk. And if so, I’d like to know. Also, it there is a higher risk for insurers, might I expect higher out of pocket maintenance.
S76 - got a great job in Valpo a couple of years back. Haven’t been able to wrangle a transfer back to Chi, and started wondering why I was trying. Pays the same as Chicago, which generally goes further around these parts. I don’t miss the traffic, and I can live 1/2 mile from the beach in the middle of a national park, with plenty of good, cheap golf around. And if I want to get into Chi, I can drive there in an hour, or even take the train.
According to Consumer Reports, their top recommended insurers are:
Amica Insurance (amica.com) 92
USAA Property & Casualty (usaa.com) 92
Auto-Owners Insurance (auto-owners.com) 90
Farm Bureau Property & Casualty Insurance (fbfs.com) 86
Erie Insurance (erieinsurance.com) 84
State Farm (statefarm.com) 83
American Family Insurance (amfam.com) 83
I’ve been insured with Farm Bureau for 25 years and have never had a problem. When we had major storms come through, I not only had the adjuster out, I had repair work being done on my house before co-workers using State Farm even had the adjuster make time to come look at their damage. They’ve never nickle-and-dimed me on a claim. If I walk into their office, every few years, my insurance guy recognizes me immediately (which is like some kind of super power).
StG
One thing that was noted when I asked a similar question is that companies will quote an attractive rate to get you to switch, and then raise them later. So even if you have exactly the same coverages in the quotes it may not be accurate in the long term.
It is worth noting that the CR list is based solely on a survey, not on any sort of facts or analysis.