An expensive item to miss on your “To Do” list
As clients will attest to, one item I always discuss with them is the need to reevaluate all insurance policies at least annually. This cannot be made any clearer than with a personal example.
A couple years ago on our semi-monthly trip to Costco, as we were leaving and waiting in that line where an employee supposedly checks your receipt with what’s in the cart, I picked up a brochure for insurance through Costco.
Later that week after a few calls were made we switched our homeowners and auto policy over to the new company that is discounted through Costco.
All was good in the world of Auto and Homeowners Insurance.
Fast forward 2 years to last month. With no claims or any changes to the policies since the start date. I opened the renewal letters, after reading through them (Auto and home arrived the same day) something didn’t sit right. I called the company to have a discussion as to why the rates had gone up. In my mind, they went up somewhat. I was told that there was a company premium increase for the state I live in. When I asked to review the policy as it currently stands I was shocked to hear the Auto had increased 50% and the homeowners 250% yes you read that correctly.
After my heart started beating again we reviewed the coverage which I kept the same. Immediately after I started calling other companies and I was able to acquire insurance through another carrier with the homeowner less than it was originally and the auto just a few dollars more than originally.
The moral of the story is simple, check your policies semi-annual or annually and get other quotes all the time. If this had not been such a drastic jump its possible it could be overlooked. Don’t just assume since you are getting something thru a membership with a 3rd party (Costco in this case) that its automatically cheaper. This is in no way a criticism of Costco or even the insurance company. While this happened one month earlier than if I had waited for the item to appear on my to do list, missing this would have cost an additional $3200 per year. In the age we live in with auto-drafts and insurance being paid through escrow accounts it’s even more important to have things like this show up on your calendar or to do list to check periodically.