Renter’s Insurance: Do I choose the Cheaper policy or the Better Deal? June 6
I’ve got a dilemma- we are moving in just under a month and in preparing for the move across town I am updating our renter’s insurance. I am down to a choice between two companies—USAA and State Farm.
For the last two years we have used State Farm Insurance and paid about $160/year for a $26,000 policy with a $500 deductible. Before signing up with State Farm and renewing last year I also got quotes from USAA, my auto insurance provider. The quote from USAA for almost the exact same policy (except USAA covers flooding and State Farm doesn’t—not a concern for us) was about $30 more expensive—which is roughly 20%. Thus, we’ve used State Farm the past two years.
I got new quotes today and this time USAA is about $30 cheaper. My first thought was, well, we’ll go with USAA. BUT, here’s the catch. This tax season I got free tax software ($112 worth) through State Farm!
So, I’m torn. I like USAA more because:
- They have the most outstanding customer service that I’ve ever experienced and because
- They return their profits to the customers at the end of the year. (Like last year, we got a $35 check back from our auto insurance premiums. You can read more about it on the Wikipedia entry.)
- And they’re simply a good company.
- And the renter’s insurance is now cheaper.
However, if State Farm were to give me free tax software again next year then it would make their renter’s insurance policy a better deal.
So, do I go with what is outright less expensive and the company I feel more loyalty towards? Or do I pay $30 more in hopes that I’ll get the $100+ worth of free tax software next winter?
What would you do?
David Jun 6
I cant really say anything about USAA, as we have State Farm home and earthquake insurance. We have never had a problem with them, and because I have a local agent, we can always talk to someone if we need to. Good luck on your decision, but I like State Farm!
Cindy Jun 6
Just so you know, this last year USAA had free on-line tax prep software and submission. It wasn’t as good as getting the discs, but could help persuade you do go with them. I’m sure if you called they’d tell you all about it, especially if you tell them that’s why you are hesitant.
FYI, I am a long-time customer of USAA… they are really amazing. It’s not often you can love your insurance company/cc company/bank/mortgage provider.
Cindy Jun 6
I spoke too soon… it was for 20% off Turbo Tax, but they did have a free edition if your taxes aren’t too complicated.
sorry about that…
still a bonus, though!
Golbguru Jun 6
I would go with a company I am more comfortable with (as long as it is offering reasonable rates) - not with someone who is giving me free software - especially when it comes to insurance.
Don’t let the tax software (or other goodies) sidetrack you. I am sure you will find some cheap deals on tax softwares elsewhere on the internet.
amy Jun 6
I would go with the company that has the
great customer service. If you ever have to make a claim that’s what would be important, not tax software. You can always get tax software inexpensively with rebates.
Kimber Jun 6
Ummm…wasn’t State Farm in the whole Katrina mess? I wasn’t too impressed with how they handled the situation.
The key indicator of a “good” insurance company is how they handle a claim (indeed, the only reason to have insurance).
Randy Jun 7
USAA is the obvious choice for many reasons. 1. They have highest possible financial strength ratings from AM Best, Standard & Poors and Moodys. State Farm does not.
2. USAA’s renters policy has more thorough coverage. State Farm’s has gaps.
3. The cost is about the same, but USAA pays you back in SSA dividends, which are higher with the more premiums you pay.
4. While State Farm may have an agent nearby, usaa.com and USAA is open 24 X 7.
5. USAA’s sole purpose is to serve the military and their families, and that’s all they intend to do.
6. No insurance company has EVER received a higher score in any J.D. Power auto or homeowners insurance study since 1999.
Why don’t you call today and take care of this now? Then you never have to worry again.
Best of luck!
Stephen Jun 7
A few things to consider as you make your decision:
1) You’re likely to get a “multi-line” discount for using the same insurance company for two different kinds of insurance. At least, I do with State Farm. I use them for auto, renters, and a personal articles policy. I imagine USAA would be the same.
2) Insurance isn’t really something you want to be switching constantly. Different kinds of discounts begin to apply as you stay with the same company for a time.
3) State Farm also returns profits to its policy holders: I got $65 back on my auto insurance policy this year.
4) I think the customer service you get from your local agent is more important than the company as a whole. This is going to sound like a good neighbor commercial, but I swear it’s true: About a month and a half ago, my grandmother accidentally drove her car through the back wall of her detached garage. She lives hours away from my parents. My dad looked up the home number of her State Farm agent and called him. He was at her house in about 20 minutes, handling the entire situation. The kicker? It was nearly 11:00 on a Saturday night.
prlinkbiz Jun 8
My first thought is to see if you can talk with your State farm rep and tell them you are considering switching. See if they will work with you at all, it’s amazing what you can get if you ask! Do you have any of other insurance with them? Car etc? If so, you might stay to keep any , multi policy discounts in place. If your agent wont work with you at all, I’d head over to USAA. I’m with Kimber- you get insurance so if you ever need it, it will be easy to deal with and help you!
ispf Jun 13
I would suggest going with the company you are most comfortable with. You can get rebates on tax software from many many different sources - no point in jeopardizing your insurance coverage for the sake of the software. Good luck with your decision!