OPIC always encourages consumers to shop around for insurance, so we took our own advice and did the same. OPIC staff recently shopped for our own policies to see if we could get a better deal on our insurance. Our goal was to save money without losing coverage. Here’s what we found:
Everyone who shopped could save money by switching insurance companies.
On average, OPIC staff could save 35% on their auto insurance by switching companies.
On average, OPIC staff could save 25% on their homeowners insurance by switching companies.
Staff would save an average of $1,028 a year if they switched both auto and homeowners companies.
Some staff did not want to switch companies even to save money. Brand loyalty, customer service, and perceived hassles with switching were listed as reasons.
Bundling policies together, such as auto and homeowners, had bigger savings than shopping each one separately.
Staff got better quotes and more information by calling a company or agent than shopping online. Some staff were more comfortable shopping online.
On average, OPIC staff could save 35% on their auto insurance by switching companies.
average savings per person per year
On average, OPIC staff could save 25% on their homeowners insurance by switching companies.
Shopping Tips – Auto Insurance
Be sure to review coverage choices carefully. Some companies offer limited coverage for a low price and better coverage for only a few more dollars. Quotes from two companies may seem close but have different levels of coverage. Use OPIC’s Auto Insurance Shopping Guide checklist to ask questions about coverage.
Make sure to get quotes from several different companies. Independent agents sell insurance for more than one company. Others, called captive agents, sell policies for one company. Include both independent and captive agents in your shopping. Some price quotes may be three times higher than others, for similar policies.
When shopping online, review the info displayed by the website or application. Some electronic databases may have vehicle or personal info that isn’t right. If it’s not, call the company for a more accurate quote. Some companies may ask for your social security number – carefully consider whether to provide it.
Be sure to let them know if you drive for Uber or Lyft, deliver food or other items for pay, or use your vehicle for business. You may need a different kind of coverage for that. Make sure to give complete and true info when applying for insurance or you might not have coverage for an accident!
Shopping Tips – Homeowners and Renters Insurance
Be ready to answer questions about your home or apartment construction. Companies may want to know:
- the shape and type of roof you have
- the age of your roof, or last time it was replaced
- your home’s primary construction type (frame, brick veneer, etc.)
- type of electrical wiring or plumbing (especially if your home is older)
- the number of units in your apartment complex
- if your apartment has firewalls between family units
Don’t worry if you don’t know some of these things, but the more you know, the more accurate your quote will be.
Pay attention to the dwelling policy limit related to your quote. It’s based on the cost to rebuild your home, not the market value. The market value includes the price of the land. The dwelling policy limit affects the amount you pay. You don’t want to buy coverage you don’t need. You also don’t want $200,000 of insurance coverage for a home that costs $350,000 to rebuild!
Companies may be more flexible in setting dwelling or other policy limits if you call rather than shop online.
Some companies may not provide much detail about policy coverage, at first. Coverage details can be hard to understand. Use OPIC’s Residential Property Insurance Shopping Guide checklist to ask questions about coverage and use OPIC’s Policy Comparison Tool to compare policies.
Make sure to get several quotes. Homeowners premiums can vary sharply for similar policies. Quotes can be hundreds or even thousands of dollars different.