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By January 26, 2018 Personal Insurance

     Seems like anywhere you go nowadays you get bombarded with ads about saving money on your auto insurance.  It’s on the TV, radio, billboards, in the mail… you name it… “We’ll save you $747 or 43% on your auto insurance.”  We’ve all seen them.  Well, the point of today’s article is not to comment on whether those AUTO savings claims are accurate or not (which could be the topic of another article), but to focus on what would be left if you did switch your auto insurance away. 

     In many cases, your auto policy is packaged with your home and umbrella.  When that policy cancels, you instantly lose your multi-policy discounts.  These discounts can be HUGE and can easily evaporate any perceived savings you thought you would have.  Furthermore, now you are left with an umbrella policy which either does not sit over your new auto policy or costs more for sitting over another carriers underlying policy (best case scenario).  Now, your bottom line insurance cost is the same or quite possibly more, you have multiple companies, multiple invoices coming in and more entities to contact for routine policy updates. 

     At this point, YOU ARE MAD!  You are mad at the new auto company for not telling you that.  You are mad at your existing agent for surprising you by raising the premium on your home and umbrella, and you’re mad at the industry in general for letting this happen to you!!!

     So what are your choices at this point?  Well, one option would be to ask your new auto company what they have to offer for home and umbrella.  They might say, “Oh, well we don’t do those policies” or “We can do that, but our policies are inferior to what you had or it’s going to cost you a lot more for that product line.”  Another option would be to go back to your existing agent and say “Wait, don’t cancel that auto policy just yet.  Maybe I can withdrawal that new application I just put in elsewhere?”  Can you help me with that (a good agent should help you with that without a chip on his/her shoulder?)

     So to bring this full circle, if you have more than one policy with a company and you feel the need to shop, shop all of the policies at once… not just one.  Make sure the package as a whole makes better sense.  If you have a trusted agent, call the agent and see what other options may exist for you.  He or she may have options or be able to make points that you like and allow you to maintain your relationship with your longer-term advisor (which could be the topic for several other articles).  Either way, after hearing it from both sides, you likely have made a better decision.

Have a great week everyone!