Insurance Coverage (Home, Auto, Umbrella, etc.)

[L_RAO]

Hi there,

At a crossroads right now and would like some input.

Up to this point I've had Mercury for Home & Auto, and USLI for a personal umbrella.

I've never had to make a claim, and I carry max coverage amounts (with appropriate deductibles).

Every single rating agency I've ever read consistently rates Mercury at the bottom, and the "big advertisers" (State Farm, Progressive, etc.) are all typically clumped in the middle. I'm considering Amica, which has been consistently rated at the top, but I'm looking at about a 35% annual increase over what I'm paying now.

On one hand, I would probably sleep better at night with the better coverage, but on the other hand, I'd rather not throw away money if I don't need to.

Thoughts would be greatly appreciated.

 

[nsxtasy]

First of all, it's good that you're looking into this now, and not when you have a claim and you're unhappy with the service you're getting.

I assume the ratings you're looking at include Consumer Reports and J. D. Power. Both have comprehensive ratings, of policy service, claims satisfaction, etc.

I recommend getting prices from a multitude of companies you might consider. A website such as insweb.com can do this for you quickly, without having to contact companies individually.

You might find that there are insurance companies whose satisfaction is above average and whose rates are not substantially above average. Granted, Amica is often at the top of the ratings, as is USAA, which is available to families of veterans; however, you'll have to decide whether they are worth paying 35 percent more for, as that's a large difference. In my area, I've found that State Farm is usually well above average for satisfaction while also providing competitive rates. I've also found that it can be helpful to have an agent in a local office; my local State Farm agent has been very helpful and willing to "go to bat" for me whenever there are any issues. When I was originally shopping around, like you, I found that Amica's prices were not competitive, and I've been happy that I chose State Farm ever since.

I have had consistently bad experiences with claims handling by Allstate, both when I was a customer (before switching to State Farm) and more recently when I was a victim of one of their policyholders.

 

[Lostbuckeye]

I've been with State Farm for over 35 years. And have had Awesome service. I've found that having a long relationship with your insurance company and your bank will pay dividends that are worth more than the savings from switching around.

In my case, the insurance company paid me more for my totaled 91 NSX than I had into it and had my back twice when we had some storm damage. And my bank referred me to a banker in their company who is a car guy that based on my relationship with them (and I'm sure credit rating) is comfortable financing a 22 year old Acura for almost as much as a four year old Acura then after it was totaled set up a credit line so that I could make a quick almost overnight transaction to purchase my current NSX.

So my advice, which I got from my dad many years ago, is to do your best research to find the insurance company that will "always have your back" and stay with them. There are a lot of companies that will offer to reduce your rates and they will for about two years. Then when you have a claim that's when the savings goes away. I've seen it happen to a few of my friends and neighbors because they change companies every couple years to pay lower rates. Anyway, that's what has worked for me.

 

[Aluminsx]

I've had State Farm for about 26 years (auto, home, life, and umbrella). I've got pretty much every discount that they offer. I'm pretty happy with their rates. I recently checked out USAA (army veteran) and their rates were not quite as good as SF. That being said a friend of mine had Liberty Mutual insurance for many years and at my recommendation he checked out USAA and found that he'd be paying about half of what he was paying. The moral of the story is that it pays to shop around.