Insurance Company Downsizing? Time For New Insurance Quotes

Your current insurance companies financial S.O.S. signals may mean it’s time to get new insurance quotes from other companies.

It’s time to look for new insurance quotes when your insurance company starts to show signs of financial trouble.

Most things in life give us fair warning before things start to go bad. Fruit changes color before it spoils, engines make funny noises before they stop working, and you feel tired right before you get sick. Just like any of these other things, insurance companies also give off signs that there is going to be trouble ahead; unfortunately, this usually means problems for you financially, as well.

When is it Time for New Insurance Quotes?

Whenever you start seeing your insurance company start showing signs of financial distress in your state or nationwide, it is time to start calling around for new insurance. These signs can include laying off a large amount of people on the corporate level, cutting back on the number of independent agents they have, negative chatter about their stocks, and starting to close offices.

Any of these signs can be an indication that your insurance company is having trouble financially and is looking for ways to turn things around. The closures and cut backs are all ways to decrease the overhead costs of running the company to try and salvage it from going under.

Why Would it be Time to Look for New Insurance Quotes?

When insurance companies aren’t making enough money to stay in business, they do two things. One, they cut overhead costs; which are the examples given above.

Two, they look for ways to make more money. And this additional money comes from you. In order to keep their business open, they are going to raise the price of their product; which means increasing your insurance premium.

For example, in the early 2000’s SAFECO Insurance made huge cuts in their workforce in an effort to keep in business. Thousands of people lost their jobs and offices nationwide were shut down. Insurance premiums were then later raised to try and reverse the financial problems. In 2008, regardless of their efforts SAFECO was bought out by Liberty Mutual Insurance.

Do These Signs Always Mean it is Time to Look for New Insurance?

No, sometimes insurance companies take these measures to cut the excess, so they can run more efficiently. But, it is still something to keep an eye on.

When you start seeing the signs of overhead being cut, keep a keen eye on your insurance premiums. If they start to increase for no reason, it is time to call around to the insurance companies that aren’t having financial issues for new insurance quotes.