Thanks. This part worries me:
Last, because reciprocal insurance exchanges rely on the concept of risk pooling in which policyholders share risk and monetary obligations, this also means that policyholders indirectly carry the risk of other members’ claims. If a small number of policyholders incur large losses or liabilities, it may have an impact on the exchange’s general viability and solvency. This may potentially lead to an increase in premiums for all members.
My friend warned me about smaller companies that might not be able to handle claims from a hurricane. This sounds like it might be that.
It does sound like a health ministry! But the article Benson posted says that Farmers and USAA are reciprocal exchange, and those are huge companies. By the way if you have an ancestor (parent, grandparent, great-grandparent) who was in the U.S. military, USAA is supposed to be very good.
I’d probably be ok if it was a major well known company, but not ok if it’s some unknown one.
Reciprocal Insurance Exchanges (RIE) are unincorporated. That means that finding financial information about them is difficult.
According to the rating company Demotech, Inc, Sure operates in AL, FL, LA, MS, NC, SC, TX. These are all hurricane prone states. Also, according to the NAIC website, they are only licensed in NC, SC, MS, and TX.
It appears to be a new company without much history to base its performance on.
Based on information from the NAIC (National Association of Insurance Commissioners), they appear to have operated at a loss in both 2022 and 2021. Consumer Insurance Refined Search Results
If you want to do any more searching about them on the NAIC website, their NAIC company code is 17030
Insurance is one of those areas where I tend to be very conservative. As @Meowmalade says, maybe if they were large and well-known, such as USAA or Farmers, I might give them a chance, but as a smaller regional insurer, they give me pause.
I’d feel better about it if it were a huge company. It seems no huge companies are writing new policies in Louisiana right now. They’ve all pulled out.
Me too. That being said, those are the only insurers actually writing homeowners policies in LA right now, small regional insurers. However, as I understand it, not all of them are reciprocal exchange.
Also the quote is SO much lower than others for more or less the same coverage that it really gives me pause. What’s the catch? There must be a catch.
Have you tried Homesite? They’re the company I use through GEICO. They’re part of the American Family Insurance Group,
FYI, though, my premiums went up a considerable amount this year with Homesite! Although when I needed them earlier this year (burst water pipe due to freezing) they were very pleasant and easy to work with.
I had no idea! I have Farmers for my car and home insurance. I had absolutely no idea they were any different from any other insurance company. I’ve had to call for claims on both car and house and they also acted just like any other insurance company. I’ve had absolutely no difference in my dealing with them than when I had Geico/Homesite/Progressive.
Car Insurance opinions requested. I have had State Farm since I was 17 because that’s what my parents have always had and I’ve never thought to switch. Lately though rates have gotten so expensive and it’s the first time I’ve ever considered shopping around. I just got a quote through Progressive for literally a 40% discount off what I’m currently paying, for the same coverage. Any bad experiences with Progressive, or reason I shouldn’t switch?
ETA: I’ve also been considering whether I need to have collision insurance. My car is 20 years old, and everything I read says to not pay comprehensive or collision on a car this old. But I’ve always paid it anyway. Opinions on whether or not it’s a good/bad idea to drop it?
IMO yes drop them, it’s not worth it, but keep a good E fund as a backup/and or a car replacement fund since it’s old anyway.
I think Progressive is fine, and I mostly go where the price is low as long as it’s a well reviewed major company. Did you let state farm know you might leave and see if they can do any better? Or do you have a military/veteran relative that might be able to get you into USAA?
I’ve had Progressive for several years but I’ve also not had to file a claim through them that I recall. As long as the coverage is the same definitely go with the better price. I did just shop around for car insurance earlier this week and some of the quotes I got back definitely didn’t have the same coverage at first until I fiddled with them to get everything matching.
I just realized the Progressive quote didn’t include collision, while I pay for it at State Farm. It didn’t even give me the option to add it! Tricky…I guess because my car is 20 years old they just assumed. Glad you mentioned this!
I’ve had Progressive in the past, and they were pleasant to work with the one time I had to file a claim with them.
Regarding collision and comprehensive, I agree with @rocklobster in that it’s probably not worth paying for. What they will most likely do is only cover up to the Kelly Blue Book value of your car, and if repairs exceed that, they’ll just total the car, cut a check, and call it a day.
The single most important thing is liability insurance, because that is what can really spiral out of control if you’re ever at fault for an accident.
I’ve had progressive for ages solely based on price. The one time I had a claim (other driver was 100% at fault) we had zero issues dealing with them. So much depends on the specific adjuster you get though is my understanding and that’s a crap shoot anywhere.
I have Progressive. Also had them when I had an accident and I was 100% at fault. They had an accident forgiveness program and our rates did not go up. They did go up when husband got a speeding ticket (understandably). We’re still with them though.
I have Progressive too, and have through moves to 3 different states. I’ve had to make a claim one time (was rear-ended, 100% the other guys fault) and I think that because I have collision they took care of everything getting the other guy’s insurance to cover it. Included a rental during the repair period and I got my deposit for the body work back 100%, no rate increase. I actually looked into dropping collision but the difference in price was only like $10 or $15 for the 6 month policy? Something like that? So I still have it. I am convinced I would have been left swinging in the wind on my claim if I didn’t have collision. As have been said, you definitely want high liability coverage since you have assets (a house). My policy decreased in price this last time by a very tiny bit! (My car is 16 years old.)
For a while I ended up bundling my home and auto on Safeco, that saved me the most money.
Since I don’t have a home to insure any more, I contacted the Safeco agent here and he ran a few quotes for me. I got the best deal with Clearcover who I’d never heard of before.
I have an 18 year old car and I don’t carry comp or collision on it. If you’re driving a 20 year old car it sounds like you’re pretty good at not driving into things. A few years back I decided the cost of the insurance was too high relative to the blue book value of the car.
