And no, it has nothing to do with a green reptile.
I consider myself a pretty conscious consumer. I know to compare rates between service providers regularly, and to question charges I don’t recognize on statements. It’s for this reason that I felt constantly frustrated and stymied when I compared auto and home insurance rates. Ours kept going up — significantly — despite zero claims. Every time I compared rates, I came up with the same result: other providers quoted us nearly the same, sometimes for even less coverage.
Last year, my husband finally upped our deductibles and dropped rental insurance coverage to save $250, something I bragged about in a post about recurring expense hacking. But those savings were pretty much obliterated when our latest renewal arrived.
In chatting with my parents about our frustrations, my mom was especially appalled by our homeowner’s insurance rates. She said our rate was the same they paid after a fire claim forced them to pay exorbitantly high premiums for a year. Since we had no such claim history, it was completely ridiculous for us to be paying the same rate. She suggested we look into AAA, a provider that hadn’t been on my radar.
This past week, I placed a call to our regional branch and was quoted on both auto and homeowner’s insurance policies. Though we have to pay a membership fee to receive access to insurance policies, it’s well worth the $112 annual price tag: we will now pay $150 less for auto insurance, and a whopping $1,300 less for comparable homeowner’s insurance. I’m absolutely floored. I had no idea we were overspending on homeowner’s insurance to that degree.
What’s more, I discovered an error on our homeowner’s insurance quote that could have cost us over $100. An unfamiliar claim from last May drove up our rates slightly, and with some digging by AAA, we discovered it actually belonged to my husband’s parents. My husband and his father share the same name, save for their middle initial, and insurance claims are pooled into one database to which all insurers have access. My in-laws’ claim was incorrectly applied to our profile because their insurer failed to include my father-in-law’s middle initial and birth date.
Interestingly, I called our former provider twice during this process: the first time, to inquire about the incorrect claim on our insurance. They never returned my call. The second time was to inform them of our change and to request cancellation of our policies, to which they put absolutely no fight despite YEARS of patronage. I suppose I shouldn’t be surprised, but still — what gives?!
Ultimately, this experience is a good reminder about the importance of comparing rates and thoroughly reviewing quotes. It’s easy to let potential savings cloud your better decision-making, but taking the time to absorb the details is key to saving the most money.