Re-Shopping Home and Auto Insurance: Here’s Why you Should
For many in America, some of the most prominent signals of reaching adulthood and achieving financial independence are the purchase of a home and a car.
However, we don’t usually factor in the experience of shopping for insurance when excitedly planning the purchase of a family home or a first car. The process of researching providers and selecting the most suitable plan for you may seem tedious at best. While that feeling is understandable, you could be leaving money on the table by sticking with the insurance provider whose policy you initially chose.
If you did purchase home and car insurance in the past and have not reevaluated your policies, now would be a great time to take reevaluate. Shopping for insurance and comparing options is easier than ever and looking for new home and auto insurance plans at the same time is an ideal situation anyway.
Why You Should Shop for Home and Auto Insurance at the Same Time
In the interest of exploring all of your options, it is best to consider shopping for both home and auto insurance.
Indeed, you might find benefit from bundling together your home and auto insurance policies. Depending on your location, you might find providers offering bundled home and auto insurance policies with monthly savings. You may also save time and hassle by dealing with only one insurance provider and possibly combining your deductible.
With that said, there are also potential downsides to purchasing bundled home and auto insurance from a single provider. While it is certainly more convenient to deal with just one point of contact, providers will also raise rates over time. Becoming complacent with your insurance policy may result in paying rates higher.
Shopping for home and auto insurance allows you to see all available options between providers. While it’s great if you find a cost effective plan, it is still important to re-shop every year to be sure you aren’t paying too much in premiums.
This leads us to the top 3 reasons why you should re-shop for home and car insurance.
3 Reasons to Re-Shop for Home and Aut0 Insurance
1. Look for Lower Premiums
Attempting to lower your premium payments is the most obvious reason to revisit the insurance market. Since it is common for premiums to rise over time, checking your options every couple of years is smart.
We’ve already covered the potential cost savings from pursuing insurance plans, but you might be able to find better deals from shopping around from different providers. For instance, a bundled plan might provide apparent cost savings, but only when factoring in coverage you don’t really need. If you are looking to minimize cost in premiums, you might turn to the market to find a provider willing to match your preference for both home or car insurance.
2. Check Existing Coverage (And Update If Necessary)
Since the initial purchase of home and auto insurance can be stressful, it’s not surprising that people tend to sign up for a policy and not review it later. However, it is important to keep yourself informed about the fine print of your policy. Then you can identify if your existing coverage is sufficient at the updated premium.
For example, imagine that you own a home in a forested area on the west coast. Alarmed by the recent rash of wildfires in California, you check your homeowners insurance policy and find that it would not pay out sufficiently if such a scenario happened in your area. You can then check the market to see what such a policy would cost now.
3. Find the Right Provider
You may have selected the best policy, companies change and may not provide the affordability you initially received. Conversely, new companies that enter the insurance space may be eager to gain customers and therefore offer market-leading premiums or provide excellent customer service.
Although it can certainly be beneficial to switch providers when you find a compelling reason. The goal remains to find one that offers the most suitable policy for you. After all, many providers do offer longevity discounts based on how long you’ve maintained a policy with the company.
Most Americans never re-shop for home and car insurance. However, there might be real benefits from heading back to the market to look for lower premiums or better coverage.
If you are looking for home and auto insurance, you might want to consider bundling your policies. This is likely to lower costs and a streamlined claims system.