BOSTON — Most of us never stop to think how much we can save on homeowners insurance by switching providers, but one consumer advocate says Massachusetts homeowners can shave hundreds of dollars off their annual premiums by shopping around.
“One myth is that all companies pretty much charge the same prices and that’s not true,” said Kevin Brasler, Executive Editor with Boston Consumers’ Checkbook. “The reality is most of us can save a lot of money by switching companies.”
Boston Consumers’ Checkbook researchers collected annual premiums for sample policyholders and found a family living in Danvers would pay:
- $1,003 a year with Progressive
- $1,194 with Andover
- $1,292 with Green Mountain
- $2,798 with Farmers
- $2,866 with Quincy Mutual
- $3,082 with Amica
- $3,298 with Hanover
“These days it makes sense to every couple years shop around and make sure you can’t save significantly by switching your coverage to a different company,” Brasler said.
A lot of homeowners think they can’t switch because they’re locked in with their current company. Brasler said that’s incorrect.
“You don’t have to wait until your policy is about to expire to do your shopping,” Brasler said. “If you sign up with a different company and then cancel your old policy your old company by law has to refund you and the unused share of the premiums you’ve paid.”
When shopping for a new company, Brasler recommends choosing one with a high deductible. He said homeowners can save 10 to 15 percent by opting for a plan with a higher deductible. Also, Brasler said avoid buying too much coverage, limit the number of claims you make and consider buying home and auto policies from the same company.
Westborough resident Mark Ragolia said he once convinced a friend to switch insurance companies are sticking with the same provider for forty years. When his friend finally switched, Ragolia said he saved more than $1,000 a year.
“Yeah, there’s a lot of money to be saved,” Ragolia said. “Insurance companies will offer to new policy holders usually a really good rate to switch, as long as you’re not switching every year. If you’ve demonstrated that you can stay somewhere five or ten years, they want you.”
This is a developing story. Check back for updates as more information becomes available.
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