Insurance Company Bait-and-Switch

Insurance Company Bait-and-Switch

My home insurance company is trying to screw me and hope that I won’t notice!  I thought I would share this fun experience with you so that you don’t fall prey to the same types of shady bait-and-switch type practices.

Insurance Company Bait-and-Switch – Background

If you will recall from a post I wrote about one year ago on my quest to save on car and home insurance, I switched from State Farm auto and home insurance to Progressive auto and home insurance.  In the end, I was able to save about $475!  I was super stoked about such a large savings.  But, what is too good to be true?

Insurance Company Bait-and-Switch – Home Insurance

Progressive provides home insurance to me through a third party company named Homesite insurance.  They seemed like a fine company to me at the time after a little digging around.

After all was said and done, we ended up paying $732 a year for our home insurance.  This gave us coverage at the proper level for our home and all was well,

Insurance Company Bait-and-Switch – The Friendly Letter

Just a few days ago I received a rather large letter in the mail from Progressive.  I thought it was junk mail and nearly threw it out, but I decided to give it a quick open just to confirm.  It was a good idea not to toss it  because the papers were the summary of the renewing home owners insurance policy.

Everything looked fine from what I could tell until I got to the third page.  The total price to renew the policy is now $998.  WTF?!?!?!?  You are telling me that the price of the exact same home owner’s insurance policy has gone up $266 or 36%?!?!?  What kind of madness is this?

Insurance Company Bait-and-Switch – The Call

So, I decided to call 1-800-PROGRESSIVE and get this little detail sorted out.  Simply put, there is nothing they can do to lower my premium.    I have to either “eat the increase” or shop around with another company.  The person on the phone tried to tell me that there was a potential “increase in my area” due to an increased level of claims.  Ummmmm – yeah right :-)

Insurance Company Bait-and-Switch – Final Thoughts

For me, $266 is too much to leave on the table without trying to look for an alternative, cheaper insurer.  It looks like I will mobilize to beat the insurance bushes again and look for a car and home insurance combination that will hopefully break even compared to what paid for the previous year.  Why do insurance companies make us go through this bullshit every year?  It seems like their costs would be lower overall if they just took care of their current customers.  Am I wrong?