Anonymous
Anonymous asked in Business & FinanceInsurance · 2 months ago

Should I switch insurance company because of how many BBB complaints they have?

I just got homeowners insurance a few days ago because it was the cheapest option out of the two, but I just did research on the BBB of this company and they have 21 complaints in the last 3 years. Is this reason enough to switch to another insurance company? Can I even switch for this reason so soon?

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  • 2 months ago

    21 complaints out of 100 policies is quite different from 21 complaints out of 100,000 policies.  You need to go one step further - go to your state insurance department website, and look at the PERCENTAGE of complaints that carrier has.  The website will ONLY list "valid" complaints - ones that have been investigated and upheld, as the company not acting in good faith.  

    If there are issues  after your further research, definately switch - but do your research BEFORE you commit to a new insurance company.  Also, listen to the coverage advice the agent might be giving you.   Many times, cheap coverage is cheap because it has the worst coverage and the highest deductible - which the insured finds out about, AFTER the claim.   Then they post negative reviews on the internet, even though the complaint is NOT valid. 

    They got what they paid for.  

    You can switch your policy at any time for any reason.  Depending on what state you live in, the insurance company may be able to charge a cancellation fee, and/or a cancellation penalty.  But better to pay that, then to be left uninsured or underinsured after a claim because you bought "cheap" coverage.

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  • 2 months ago

    Do not switch insurance companies other than at renewal time or they will hityou with penalties.

    21 complaints in 3 years is nothing. They have thousands of customers.

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  • 2 months ago

    Depends on where you went and whether there is a minimum earned premium. 

    How much volume do they have?  For the biggest insurers out there, 21 complaints is nothing when they have millions of customers...

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  • Anonymous
    2 months ago

    Yes, you can. But you would need to pay for the new insurance before you would get a partial refund from the old. 

    21 does not mean they are terrible if they have 20 times more customers than the other. Just means bigger,

    Also, you might not get a cash refund, it might go back to the administrator of your house note. (I forget what they are called)

    Many peoples house note includes the note plus property taxes & insurance with the later 2 estimated and included in the monthly payment.

    I assume you do not own your house outright like me.

    In which case, you are not required to have insurance.

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  • 2 months ago

    Next time, just use a broker.  You pay the same price, but get someone that knows the different options and how to navigate them.  BBB complaints are a consideration, but if they're huge, 21 complaints is nothing.

  • Anonymous
    2 months ago

    the saying is you get what you pay for and cheapest is not always best

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