Auto Insurance: When would you switch?

[CanadianCapitalist]

Our auto and home insurance is coming up for renewal and I would like to hear feedback on when you would switch providers.

I've been with Co-operators insurance for close to ten years now. Almost every year, when the insurance is up for renewal, I tend to shop around and for some reason, Co-operators was almost always within $50 of the lowest quote. I've liked my agent and they've been prompt and helpful the couple of times we've had accidents and so I've been hesitant to switch for a very small difference.

Last year, it changed. Bel-Air Direct's quote was more than $200 less than Co-operators renewal offer and I was tempted to change but in the end went with Co-operators due to my history with them.

I've just started shopping around this year and am wondering how much lower should the quote be for you to switch insurance providers? Also, is getting insurance from a no-frills, direct insurance provider such as Bel-Air Direct a concern?

[lb71]

I would have switched last year with the $200 discount.

I usually check every year, but my Melonche policy seems to be pretty competitive.

Not sure what you mean by "no frills" insurer. If the coverage is the same, what would be no frills about it? Being direct means they do not have to pay the broker, so those savings can be used to be more competitive.

[kavatski]

I'd probably switch for $200 as well. I also check rates each year (part of being frugal, right?) but have never found anything cheaper than the group rates through TD Meloche Monnex. I've always used a no-frills, direct insurer and even when making claims have had no problems. I've never felt the need to deal with a full-service insurance agent.

[CanadianCapitalist]

Perhaps, this is the year to switch. Though TD & RBC quotes are comparable with Co-operators, Bel-Air's is about $500 cheaper.

Anyone have experience with Bel-Air Direct?

[michika]

No experience with Bel-Air, but I can tell you that TD is not the place you want to go. TD seems to have very lax standards when it comes to the safety of your personal and private information. We had an unsealed letter come to us that contained my entire bank account number from which they used to withdraw our insurance premiums. TD also liked to double dip and take their time to get your mistakenly taken funds back to you.

RBC was good to me when I had them for tenant/renters insurance.

[FrugalTrader]

Our auto and home insurance is coming up for renewal and I would like to hear feedback on when you would switch providers.

I've been with Co-operators insurance for close to ten years now. Almost every year, when the insurance is up for renewal, I tend to shop around and for some reason, Co-operators was almost always within $50 of the lowest quote. I've liked my agent and they've been prompt and helpful the couple of times we've had accidents and so I've been hesitant to switch for a very small difference.

Last year, it changed. Bel-Air Direct's quote was more than $200 less than Co-operators renewal offer and I was tempted to change but in the end went with Co-operators due to my history with them.

I've just started shopping around this year and am wondering how much lower should the quote be for you to switch insurance providers? Also, is getting insurance from a no-frills, direct insurance provider such as Bel-Air Direct a concern?

CC, as an engineer, you should get preferred rates at Meloche Monnex. Get a quote from them (as an engineer) before renewing.

[CanadianCapitalist]

CC, as an engineer, you should get preferred rates at Meloche Monnex. Get a quote from them (as an engineer) before renewing.

This year, TD MM's rate was slightly higher than Co-operators but Belair Direct was more than $500 cheaper. That's a big enough difference to motivate me to switch.

[FrugalTrader]

This year, TD MM's rate was slightly higher than Co-operators but Belair Direct was more than $500 cheaper. That's a big enough difference to motivate me to switch.

Wow, I'm going to give Belair Direct a call to get a quote!

[Ben]

Ditto!

[Ben]

Although, it does seem odd that suddenly this year Belair would be so much cheaper than the competition, when CC has a history of receiving near-par quotes from them.

Does anyone have any big picture ideas why this may have occurred? How do car insurance companies fund their operations? Why is Bel-Air suddenly able to offer cut-throat pricing? Did something in the regulatory framework change?

It just seems odd that, after a history of near-par pricing, this year a dramatic change in the rate is seen.