My guess is you are likely overpaying. What’s the difference? Overpaying can be thought of as allowing your policy, regardless of type, to renew year after year after year without checking in with your agent or company. In that case most companies gradually allow an unchecked policy to go up in rate and likely not keep up with the needs of the owner.
Overpaying can also happen if you, for whatever reason, are “loyal” to your company. I am not sure I understand this it is sort of like the political debate of whether or not corporations are people. Loyalty is earned, typically by other human beings not companies. Now if humans at the company treat you well or have provided great experiences I get it. On the other hand if your rates have gone up year to year and your policy has not improved I do not understand why you are so loyal.
When else? It is nearly impossible to say you are “overinsured” however it is possible to have coverage you do not need. It is also possible to maintain physical damage coverage on vehicles that you may not be concerned over the status of.
Overcharged can likely only happen if a mistake was made. Of course mistakes happen although it is fairly rare. Now if you check on your policy annually and have even a basic relationship with your agent you should be able to avoid this scenario.
Are they both avoidable? Well overpaying certainly is. How do you avoid it?
- Hire a good if not great agent
- Review your plans once a year
- Reserve loyalty for people that earn it
Thanks for reading.