I’ve written about insurance a lot over the past few months. I even developed an Insurance Buying Guide to help you decide which types of insurance you need.
In a previous post about inertia and why staying the course can hurt you, I said that those who remain with their insurance provider year after year are probably paying too much. Most people never shop their insurance rates, so they have no idea what kind of deal they’re getting.
But this assumes all insurance companies are equal. According to Consumer Reports and J.D. Power, some insurers are better than others. In surveys they conduct, two insurers stand above the rest in customer service year after year: USAA (for military service members and their families) and Amica Mutual. What if you’re already with one of these two – do you still need to shop quotes?
This blog is normally all about helping you handle money better and save as much as possible. In this case I have to make an exception. With insurance, you can’t base your decision on cost alone.
Instead, the focus needs to be on how you’re treated when you make a claim. Surveys have shown that when the chips are down, these two companies stand head and shoulders above the others in resolving your claim.
Think about it this way. You buy insurance hoping you’ll never need it, but expecting that if you do the company will be there for you. In my opinion it’s worth paying a little more for a company with a proven record of great customer service.
We’ve all heard stories about cars being totaled or trees falling on houses and what a pain it was to deal with the insurance company. Switching to one of these two companies will greatly reduce your chances of going through something like this.
But if price is a big deal to you, shopping around can make a big difference in your premiums. Get quotes from at least three companies so you know what kind of deal you’re getting.
If you want to be with one of the two best but the premiums are too high, try raising the deductible.
Take this from a cheap guy: Cheapest is not always best in the insurance industry. Focus instead on how you’ll be treated during the claims process and you’ll be happier in the end.
Photo by goinsurancerates.com
That’s a great point. A lot of people only see the price when it comes to most insurance plans such as home and auto but they need to do an apples comparison to really know if they are getting a good deal or not.
My wife and I did this back a few years ago and found out that we could get the same plan as our other insurance company was offering but also get a $1 million umbrella policy and still pay $300 less a year. Now that’s a great deal.
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