When Should You Switch Insurance Carriers?

Buying insurance from a company doesn’t have to be like entering into marriage. Not all insurance carriers are worthy of a, “Till death do us part,” commitment. Certain factors could indicate that it's time to cut one insurance company loose in favor of another. These include:

• Lowered A.M. Best ratings. A.M. Best monitors the financial health of insurance companies. Their assessment indicates their findings regarding the likelihood that an insurer will be financially capable of paying claims. A.M. Best ratings are not stagnant; they are dynamic and can rise and fall based on the financial health of an insurer from year to year. While it's important to note that not all decreases indicate a failing insurance company, nor should they immediately prompt an insured to switch insurance carriers, some very big swings in ratings could mean that a carrier is in trouble
• Premium hikes you can't afford. If your insurance company is raising your rates to a point that you must significantly sacrifice benefits in order to afford premiums, you may want to talk to an agent about finding less expensive insurance carriers. While going cheap should never be your ultimate goal when purchasing insurance, you must find a carrier who balances substantive insurance benefits with premiums that you can afford.
• You're dissatisfied with the service. If you are unhappy on a consistent basis with the service that your insurance carrier provides through its claims, underwriting, and customer service departments then you might wish to consider switching insurance carriers. If you have an agent you enjoy working with, however, it might be a better idea to keep the coverage you have and simply rely on your agent to communicate with the insurance company for you. Talk to your agent about this possibility and find out what paperwork is required to make that happen.

Switching insurance carriers is not exactly like switching cable providers. There are many consequences that could come from terminating certain insurance policies and gaps that could be created when terminating one line of coverage in favor of another. Whether you have Dallas, Mansfield, or Arlington business insurance, give us a call at All About Insurance before you decide to switch carriers to make sure that your instincts are right on, that you understand any potential drawbacks, and that you get some additional, knowledgeable input before you make your decision.