Should I Switch Insurance Companies?

When your home or auto insurance renewal arrives and the price has gone up, it’s natural to wonder:

“Should I switch insurance companies?”

Sometimes, the answer is yes. If your premium is no longer competitive, your coverage needs have changed, or another carrier is simply a better fit, shopping your insurance can absolutely make sense.

But switching insurance companies just to save a few dollars isn’t always the best move.

There can be real benefits to staying with the same insurance carrier – especially when that carrier continues to provide the coverage, pricing, and service you need.

Here are a few reasons why staying put can sometimes pay off.

1. You May Qualify for Loyalty Discounts

Some insurance companies reward customers who stay with them over time.

Depending on the carrier and policy, you may qualify for discounts based on how long you’ve been insured with the company. Leaving means you could lose those discounts—and you may have to start over when establishing tenure with a new carrier.

That’s why it’s important to compare more than the initial price of a new quote.

A lower introductory premium today doesn’t necessarily mean it will remain the better value several years from now.

2. Your Claims History With the Carrier May Matter

A long relationship with an insurance company can sometimes be beneficial when claims occur.

Certain carriers offer features or discounts related to being claim-free for a specified period. Others may offer accident forgiveness or other benefits to qualifying customers.

These programs vary significantly by insurance company and state, so you shouldn’t assume you’ll receive special treatment simply because you’ve been a customer for a long time.

However, if your current policy includes a valuable loyalty or claims-related benefit, you should know exactly what you’re giving up before switching.

3. You Could Lose Valuable Policy Features

This is a big one.

Two homeowners policies that appear similar on the surface can have important differences in their coverage.

Your existing policy may include endorsements, higher limits, replacement cost provisions, deductibles, or other coverage features that aren’t automatically included with another insurance company.

The same is true for auto insurance.

A quote that’s $200 cheaper isn’t necessarily a better deal if you’re also losing valuable protection.

Before switching, make sure you’re comparing coverage to coverage – not just price to price.

4. Keeping Multiple Policies Together Can Have Advantages

If your home, auto, umbrella, or other policies are insured with the same carrier, you may be receiving a multi-policy discount.

Moving one policy elsewhere could affect the price of the policies you leave behind.

For example, you might save money by moving your auto insurance to another carrier but lose part of the account discount on your homeowners insurance. Once you look at the total cost of both policies, the savings may be much smaller than you expected – or disappear entirely.

That’s why we like to look at your insurance as a whole rather than shopping one policy in isolation.

5. A Longer Insurance History Can Be Valuable

Insurance companies consider many different factors when determining eligibility and pricing, and those factors vary by carrier.

Frequently jumping from one insurance company to another may not always work in your favor.

Maintaining continuous coverage and building a stable insurance history can be beneficial, particularly if your current carrier remains a good fit.

That doesn’t mean you should stay with an overpriced or inadequate policy simply for the sake of longevity. It means your history with a carrier can be another factor worth considering before you leave.

6. The Cheapest Quote Isn’t Always the Best Insurance

We understand the temptation.

If Company A wants $2,000 per year and Company B quotes $1,700, why wouldn’t you switch?

Sometimes you should.

But first, we want to know why it’s $300 cheaper.

Does the new policy have a higher deductible? Are the liability limits lower? Is replacement cost calculated differently? Are certain endorsements missing? Are there restrictions that weren’t on your previous policy?

Saving money is great. Saving money by unknowingly giving up coverage isn’t.

Does This Mean You Should Never Switch Insurance Companies?

Absolutely not.

There are plenty of situations where changing carriers makes sense.

Your current premium may have become uncompetitive. Your insurance company may no longer be the best fit for your home, vehicles, or lifestyle. Your needs may have changed. Or another carrier may be able to offer comparable—or even better—coverage at a significantly better price.

That’s one of the biggest benefits of working with an independent insurance agency like Blue Marsh.

You don’t necessarily have to leave your insurance agency just because you need a different insurance company.

We represent multiple insurance carriers. If your current carrier is still a good fit, we’ll help you understand why staying may make sense. If it’s time to explore other options, we can help you do that, too.

Before You Switch, Talk to Your Insurance Agent

If your renewal goes up, don’t assume switching companies is automatically your best option.

Give us a call.

We can review your policy, look at your coverage, explain what may be contributing to the increase, and determine whether it makes sense to stay with your current carrier or explore other options.

At Blue Marsh, our goal isn’t to move your insurance just for the sake of moving it.

It’s to help you find the right combination of coverage, price, and long-term value.

Thinking about switching insurance companies? Talk to the Blue Marsh team first. We’ll help you determine whether it’s time to shop—or whether staying right where you are is actually the better move.

A little more about Blue Marsh Insurance…

When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.

As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.

If you’re interested in starting a quote online or having us take a look at your current policies, click here!