I'm using Trailstone Insurance broker for auto and renters in Denver, Colorado. I asked if he was going to shop around now that my 12 month policy was up and he sent a long-winded reply stating the 30-day free look period as a reason why I shouldn't shop around.
Quote:
"Additionally, all carriers have a 30-day free look period. What this means is if we issue a new home or auto policy, the carrier has 30 days to decide if they really want to keep the policy. This “free look” period has been in effect with carriers for many years, – but over the last few months – we’ve seen dramatically increased action on this ‘clause”. For example, we have seen increased rejection notices within this first 30-day period! If you were to get a rejection notice and the original “renewed” policy has been cancelled, it can be much more expensive to get a policy – if at all. So – this is a new reality in this “hard market"
Is this legitimately a good reason to just stick with my current policy? I found Progressive to be hundreds of dollars cheaper than my current Safeco renewal offer…
Insurance broker says NOT to shop around because 30-day free look
byu/campionk inInsurance
Posted by campionk
4 Comments
Did you get the Progressive quote through them or on your own?
I’m not a broker or agent, but if you got the quote on your own this just sounds like the agent trying to keep your business. Because this doesn’t seem like something you should *actually* be concerned about.
Rejections in the free look period most likely *are* going up, but:
(1) That shouldn’t happen as long as you input all your information correctly on the application when you got the quote.
(2) its not like you completely dodge this free look period with a renewal, they just already have most of the “official” info needed for the review process handy.
And (3) *usually* if you go from a solid quote to a rejection in the review period, you are fully aware that it’s a possibility because you were thinking “I wonder if they will find out about X.” Because it’s really difficult to have a significant enough error on the application for that to happen if you’re completely honest.
Now, you may see an increase in the rate if there’s minor corrections needed, but even if that happens you’ll still have insurance coverage for the time being and can just shop again if the bump is high enough.
It could be the agent is advising to make sure it gets past the 30-60 day locked in period first before considering pricing out alternatives to make sure you have stable coverage. Or it could be they bound some other deals only to have their partner carriers renege in the 30-60 day period and it screwed some of their insureds. You would have to talk with them in a bit more detail to understand their rationale.
There are plenty of valid reasons why they might give you advice like this in order to protect you from facing a huge CF with your coverage. They have a state imposed legal duty to help you manage your risk solution appropriately and price is only one of several components that flow into that process. Along with creditworthiness, claims handling excellence, stability and reliability of your coverage, appropriate limits relative to your assets and finances, a deductible that’s appropriately sized, and so forth.
Someone might be able to correct me on this but free look is usually a life insurance thing not a p and c thing.
Honestly I’d run from this guy if you’re asking for a shop before your renewal date and you gave you this answer. His answer should have been yea I’ll take a look or I think your in the best spot from what I’ve heard In the area market. Yea I get it there could be rejections in the home front but you could get that at any time with your current carrier to.
That answer he gave you rubs me the wrong way. There can be hiccups with an online progressive quote but I’d almost tell you to run on principle unless someone else here can confirm this Colorado agents wording.
Have a catastrophic accident or claim and see how the “free look” works out for ya