ldstephens

Why I Finally Shopped My Auto Insurance (And You Should Too)

I've been with Geico for the past 8 years. Eight years! I was the definition of a loyal customer—the kind insurance companies love because I just kept hitting "renew" every six months without asking questions.

Until this year, when my renewal came in $100 higher at $985 for six months. That finally got my attention. By the way, my first 6 months was $574 in 2017.

The Wake-Up Call

I decided to do something I should have done years ago: I got quotes from other companies. Here's what I found for the exact same coverage:

The Hartford was 39% cheaper than what I was paying for the same coverage I'd had all along?

Why I Chose AAA

I ended up going with AAA, even though The Hartford's quote was lower. Why? I trust AAA. I know the company, and I liked the idea of an annual policy instead of dealing with renewals every six months. At $711 for six months (half of their annual rate), it was still much better than Geico and felt right for me.

The Real Lesson: Loyalty Doesn't Pay

Here's what I learned: insurance companies count on our inertia. They bet that most of us won't shop around. So they keep nudging rates up on loyal customers while offering sweet deals to attract new ones. I was essentially subsidizing their marketing budget for new customers.

After 8 years of loyalty, Geico was charging me nearly 40% more than I could get elsewhere. That's not a reward for loyalty—that's a penalty for not paying attention.

My Advice: Shop Around Every Few Years

You don't have to switch companies every time, but at least get quotes. It takes maybe an hour, and as I just learned, you could save hundreds or even thousands of dollars a year.

Insurance companies are betting you won't bother. Prove them wrong.