đź’° Why Shopping Matters
Loyalty Penalty
14-32%
overpayment
Potential Savings
$500-1,500
per year
People Who Don't Shop
70%
annually
đź“… When to Shop for Insurance
Every Renewal (Every 6-12 Months)
Set a calendar reminder 30 days before renewal. Rates change constantly.
Major Life Events
Marriage, new home, new car, teen driver, retirement—all change your optimal insurer.
Credit Score Improvement
Paid off debt? Credit improved? Shop—you may qualify for better rates.
After Violations Age Off
Ticket at 3 years? Accident at 5 years? Time to shop for better rates.
đź“‹ Before You Shop: Gather This Info
Auto Insurance
- â–ˇ VIN numbers for all vehicles
- â–ˇ Driver's license numbers
- â–ˇ Current coverage limits
- â–ˇ Annual mileage estimates
- â–ˇ Driving history (5 years)
- â–ˇ Current declarations page
Home Insurance
- â–ˇ Property address and square footage
- â–ˇ Year built and construction type
- â–ˇ Roof age and material
- â–ˇ Heating/plumbing/electrical updates
- â–ˇ Security systems installed
- â–ˇ Claims history (5 years)
âś… The Shopping Checklist
Get Quotes from 5+ Insurers
Don't stop at 2-3. Rates vary dramatically. Include: your current insurer (for comparison), GEICO, Progressive, State Farm, at least one regional carrier.
Compare Apples to Apples
Same coverage limits, same deductibles, same endorsements. A cheaper quote with lower coverage isn't a real comparison.
Check Financial Strength
Look up AM Best rating (A or better). Cheap insurance from a financially weak company won't help when you have a claim.
Check NAIC Complaint Index
Below 1.0 is good (fewer complaints than expected). Above 1.5 is concerning.
Ask About All Discounts
Multi-policy, good student, defensive driving, telematics, professional associations, alumni, autopay, paperless, loyalty (if staying).
Test the Quote Process
If getting a quote is painful, imagine filing a claim. Customer experience matters.
Consider Bundling
Home + auto bundling typically saves 10-25%. But run the numbers—sometimes separate policies are cheaper.
Time Your Switch
Switch at renewal to avoid cancellation fees. Never have a coverage gap—start new policy before canceling old.
âť“ Questions to Ask Before Buying
"What discounts am I receiving—and what others might I qualify for?"
"Is this the 6-month or 12-month rate? What's the full annual cost?"
"What's your claims process like? Average time to settlement?"
"Are there any rate increases coming I should know about?"
"What's your cancellation policy and fee?"
"Is this replacement cost or actual cash value?"
"What's covered/excluded that might surprise me?"
"Do you offer accident forgiveness or vanishing deductible?"
đźš© Red Flags to Watch For
- đźš© Quote much lower than everyone else (missing coverage?)
- đźš© Pressure to buy immediately
- đźš© Reluctant to provide written quote
- đźš© Can't explain what's covered
- đźš© No AM Best rating or rating below B+
- đźš© NAIC complaint index above 2.0
- đźš© Extremely negative online reviews
- đźš© Hidden fees not disclosed upfront
The Bottom Line
70% of people don't shop annually—and they overpay 14-32% for it. Set a calendar reminder 30 days before every renewal. Get quotes from at least 5 insurers. Compare the same coverage levels. Check AM Best ratings and NAIC complaints. Ask about every discount. And never have a coverage gap—start your new policy before canceling the old one. 30 minutes of shopping can save $500-1,500/year.