Insurance cost - check you home and car insurances : Bad Credit Advisor

Insurance cost - check you home and car insurances

Back in the year 2000, I paid $430 a year for homeowner insurance. I was with State Farm, which had my cars insured since 1990. So at least from auto insurance point of view, I was a long time customer in good standing. The coverage was for about $300,000 with all the mandatory bells and whistles, $500 deductible, and automatic 25% increase giving me $375,000 in total coverage.

So when my homeowner insurance premium was raised to $619 in 2001, I was a bit surprised by this almost 50% hike. My agent explained me that he personally had nothing to do with that, and there was a standard increase in premiums across the board, due to hurricanes, earthquakes, fires and whatever else calamities. I shrugged it off and stayed with State Farm. The other thing I noticed, my car premiums weren't going down as used to. Even with multiple cars discount - I had three cars insured then as well as now, accident free, alarm systems and so on, the premiums were actually going up, little, but noticeable.

The following year, when I got my State Farm homeowners bill, the premium was $820. I had enough, so I called an insurance broker in my area, the one thing I thought, I 'd never do. Within a few days, I switched to something called Cambridge Mutual, company I never heard before, based well out my home state of Illinois, in Andover, Massachusetts. Very highly rated, customer satisfaction wise, actually higher than State Farm. The premium was $460, only $30 over of what I paid to State Farm 3 years ago. I kept the cars with them still.

2004 came and Cambridge Mutual sent me a bill for $600. I got rather angry, but at that point, I was about to put out the duplex on the market, so I decided to pay. Once sold, the time came to buy a house, and I decided to go back to State Farm, hell, my three cars were still there. The welcomed me back and slapped me with $1,247 premium. That was in November, 2005. The coverage was about $450,000 altogether, with $1,000 deductible. Their rational was that I left them over 2 years ago, and was treated as a new client. That was for a home insurance policy. Each of auto insurance premiums had gone up by about $25 in the same years. For the 6 month period, I was paying $380, $340 and $295 for 2000 Ford Explorer, 2001 Toyota Camry and 2000 Ford Taurus, respectively. My deductibles were $500 for comprehensive, and $1,000 for collision for each car.

In 2006, the renewal premium was $1,400. When I called State Farm, they told me something I didn't quite understand. At this point, I also had separate Personal Article policy with them, still they wouldn't give me a break.

I switched again, likely for good this time, to American Family Insurance, taking auto insurance with me as well. The homeowner premium I pay now is laughable $847 on exactly the coverage I had before. My car insurance also went down by combined $340 per year, giving me total savings of $740 a year. That is not much, but why to pay more. Plus it is more than enough to buy a gold coin, or 4 nights all-inclusive vacation somewhere in Caribbean.

Now, why I am telling you all this? Because for one thing, it shows that even smart people like myself are careless with their money sometimes. Secondly, you should not be afraid to shop around and switch, as long as you are going to a reputable company. Thirdly, I feel good about.

Thu Jan 11, 2007 04:01PM by Tony | More in Insurance | Comments (1)

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