Frequently Switching Insurance Carriers Can Backfire

In the quest for the best rates, many people consider switching insurance carriers every few years. While it might seem like a savvy financial move, this strategy can have several downsides that may outweigh the benefits. As insurance advisors, we generally advise clients to avoid shopping for new insurance carriers every couple of years for several important reasons:

1. Long-term Relationship Benefits
While there’s always a carrier that can save you 5% or so, especially in a hard market, maintaining a long-term relationship with your insurer can make a significant difference when adverse situations arise. Whether it's a claim, a youthful driver getting a ticket, or another underwriting issue, having a track record with a carrier means they are more likely to work with you. A new carrier every two years might be less inclined to bend the rules to help you in a tight spot.

2. Inspection Headaches
Rewriting your insurance triggers inspections. While technology is "improving," this often creates headaches for homeowners. Saving $200 on your home insurance might result in the new carrier requiring $1,000 in improvements to cracked sidewalks, roof repairs, or other issues you hadn’t budgeted for. These unexpected costs can quickly outweigh any initial savings.

3. Race to the Bottom
Constantly shopping for the lowest possible price is a race to the bottom. If you continuously pressure your agent to find the cheapest policy, over time, you may end up with weaker and weaker coverage. It’s only a matter of time before an agent sells you something that appears to be quality but lacks key coverage components. This could leave you vulnerable when you need your insurance the most.

While it’s tempting to switch insurance carriers frequently in search of better rates, the potential downsides often outweigh the benefits. A long-term relationship with a trusted insurer provides stability, avoids costly inspections and repairs, and ensures you have comprehensive coverage when you need it. Instead of constantly shopping around, focus on building a strong relationship with a carrier that understands and meets your needs.

Our primary goal is to secure you the most competitive rates coupled with top-notch coverage. If rising inflation is prompting you to explore options for reducing your insurance expenses, don't hesitate to reach out to us and connect with one of our advisors. We are here to tailor a solution that meets your specific needs. That's our commitment to you.