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I know that the insurance business is a game of chance. I think some "GENIUS" has come up with the idea that a long time customer with no claims is "due" from statistics to make one and they are better off to drop him and let the whole thing be just 100% profit without ever paying out a dime. They know most people have to buy it so the customers they drop will just go to another company and the ones dropped from yet another company will take their place. The only people hurt are the good customers...and insurance companies may wonder why people are so quick to call a lawyer because they dont trust them .In my case I have wanted to find another company anyway because of rude service so this makes me do it now...Its all about greed and people wanting to make money off of others without earning it.....Do yourself a favor and always hire an attorney for any claim you have against an insurance company. At least then you know the insurance company wont call all of the shots and will have to pay out more even if does go to the lawyer. Make them pay more just for spite..I plan to every chance I get.
Keep in mind that the main reason you buy it is to protect yourself, not a loan company. For example, a house fire or someone injured in your house could be very costly. So you don't want to let the coverage lapse while you are shopping around.
An insurance company I had been with for well over a decade upped my rates astronomically several years ago (coincidentally, this was just after some major ice storms along the east coast). I called them and got the "replacing losses" song and dance from them. At the amount of increase, it was more likely they were "replacing profits". Since I had never made a claim, I was less than willing to just shell out more money for nothing. Shopped around and quickly got another company with reasonable rates. I called the original company back and had them drop my policy immediately.
FWIW, I was also relieved to find that making a claim does NOT mean your rates automatically go up... it's probably the "frivolous" claims that can impact your premium. With my new company, about three years after signing on, I had a catastrophic loss on my townhouse due to a plumbing leak... they covered everything except the $79.00 to fix the actual leak... to the tune of about $75K. My premium has not really increased at all, even after that. I have to admit I was astonished and impressed. I can only cross my fingers and hope they remain so reasonable!
No matter, the earlier posting which said that the "loyalty" factor goes only one way is correct... although people may have loyalty to a company/business, that very rarely goes both ways. The bottom line is king.
FWIW, I was also relieved to find that making a claim does NOT mean your rates automatically go up... it's probably the "frivolous" claims that can impact your premium. With my new company, about three years after signing on, I had a catastrophic loss on my townhouse due to a plumbing leak... they covered everything except the $79.00 to fix the actual leak... to the tune of about $75K. My premium has not really increased at all, even after that. I have to admit I was astonished and impressed. I can only cross my fingers and hope they remain so reasonable!
Insurance companies can tell you the threshold date after which they expect a claim to become a greater probability. It could be your age, the fact your cat wasn't neutered or your neighbor just installed a sump pump and you didn't.
Maybe someone on the block stopped paying their mortgage and they expect the usual foreclosure and squatters to show up, you never know.
You have leverage, if any while you are still a customer. There is one statistic you should be aware of. In many business relationships (which is what you have with the insurance company), once one party explains, threatens or even remarks that they intent to sever the relationship unless they get their way, within 12-24 months it happens anyway. With insurance, the result usually goes like this: customer tells insurance company they are looking for another carrier and want a reduced rate or a waiver of an increase. If the carrier agrees, customer files a claim within 2 years. Customer then leaves for another carrier.
They know about this. So when you call them, inquire about the rate increase but don't mention you will consider going elsewhere. Instead, talk about your loyalty (even if it is BS) and the fact that you really like their service (which you may or may not) and ask for some consideration. Ask them for what you can do to manage your rates better. If you get a waiver on the rate, all is well.
Telling them you will go elsewhere only serves to close the door in your face. You might still do that but if you are, just do it.
Their letter said unless I signed and returned their form that my insurance would cancel on the renewal date. I plan to have another policy in place that day and not pay them for a day more. Let them figure out why Im gone.I took my car policies with me too.
Time to go shopping. You will no doubt be able to find another good company willing to give you the "low introductory rate".
I am a firm believer that you need to switch insurance companies every 5-6 years. Insurance companies will offer you a low rate to switch to them and gradually raise your rate. By about the 5 year, they get too expensive.
Lol, I've been with Farmers since I bought my house (10 years ago in April). My insurance rate is $362.14 this year, which I believe is within $50 of where it started 10 years ago. I've had my car insurance there since I was 15, so 17 years now.
I always laugh at those commercials that say "you could save up to $800 a year on your car insurance by switching to us". Usually the number they quote is close to the full amount I pay for the year in insurance on 2 cars and the house. Total for all of those, I pay about $1250 a year (and that includes full coverage on one of the cars. If we went to liability only, make that number about $950/year).
I've never had any major increase. Even looking over a 10 year period, the increase has been incredibly small. I even had a claim once when my car got stolen (I got it back, but had some damages that had to be fixed), and my rates didn't go up noticibly. I think I'll stay where I am.
I checked and they demand a 57% increase. I have been a good customer with my cars with them too for over 20 years. Never filed a claim either. I have time before the policy is to re-new to shop around and will. Fact is my house is paid for and I dont HAVE to buy insurance so I can take my time. They are trying to rip me off for sure. I thought safeco was a legit company..NOT SO
Safeco is a legit company, but you should price all of your policies with a new company. I went with state mutual 2 years ago and have been very pleased on both auto and home.
There is no reason why anyone shouldn't look at their insurance pricing every couple years.
Got another letter today saying that I could request any information they had that gave reason for an increase. I plan to do that . I also plan to switch my cars but I don't plan on letting them know until the last second. Next I've got to STOP any further bank drafts from coming out to pay the insurance that is dropping me, In 2 weeks they are set up to draft my car insurance and homeowners . I don't plan to allow this to happen.They will not get another dime from me. I have already found another company that beats their prices.
Today I got a letter from my homeowners insurance saying that they were going to give me a "rated" policy which would result in a large increase in cost.It has been around 700 a year but now they want close to 1000 a year for the same policy....Why would they try to do this when I have had no claims or additions to my home or out buildings? Needless to say I will quickly drop them before the new price can go into effect in 2 months....I couldnt call today but I am mad as hell about this. Any ideas? thanks
We just got notice from the mortgage company that our home insurance rate increased from $700 last year to $1700 and property taxes went from $5000 to 7000 increasing our mortgage payment by more than $600 a month. All taking effect 5/1 our next payment. Is this legal. I am so mad, I mean what are we supposed to do. $600 is a lot of money per month. We have a house in Idaho as well and the entire house payment is only $640 a month. Lucky for you your payments arent through your mortgage, they have already gotten away with it on mine, however after speaking with mortgage company I can shop for new insurance, which I plan to do tonight, but still its all 3rd party working with the banks so my fear is it taking months the complete. Im not sure what to do, did you find a lower rate any suggestions. thanks
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Farmers Increased mine from 700 to 1700
