Should You Be Worried to Drop a Long Standing Car Insurer?

Question: I have been with this company such a long time I don’t know anything else as far as auto insurance concerned. I am a good driver with no records or claims for at least last 8 years. Now, I got a quote out of curiosity, then one more and another. It is conclusive that I can get a better deal with another car insurance company (3 to choose from so far).

My question is that would I be in trouble with my new insurer if I suddenly have a big accident? I mean, I have a long standing relationship with my current insurer. At least they would see that I didn’t have any claims and I am a good driver regardless of the latest accident. But my new company could see me as just the accident. Does it make sense or either of the companies don’t look beyond what is in front of them in terms of accidents and deal with the claims the same way regardless. Also, what would happen to rates after a claim with my new company?

Answer: You are reading too much into this. Things change and people move on, it is part of life. Anyway, you have already answered your own question. It is unlikely that you will get a special treatment because you have been with the company so long. In the same way, you wouldn’t get an inferior treatment just because you are a new customer.

People only deal with the work in hand and not look deeper. For example, a claims adjuster has 50 other cases to deal with and cannot care less how long you have been with the company. They look at the claim submitted by you and other evidences like police report and auto repair estimates and make a decision. Remember that companies are moving to automation and away from dealing with their customer in person these days. So, it will be more and more irrelevant how loyal you have been to a particular carrier.

When you make the switch your new insurer would want to see some proof of your claims and insurance history in most cases. Once you submit that they will see that you did not make any claim for a long time. This will be recorded in your file. So, you are actually taking your history with you as well. Besides, once you have an accident your long standing insurer would have removed all your no claim discounts that would put them in par with the new insurer.

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