Why Shopping Your Insurance Every Year Isn’t Always the Best Move

It’s common advice: “Shop your insurance every year to make sure you’re getting the best deal.” While that can sound smart on the surface, constantly switching insurance carriers isn’t always in your best interest—and in some cases, it can actually cost you more over time.

Here’s why sticking with the right policy (and the right agent) can be the smarter strategy.

1. Loyalty Can Pay Off

Many insurance companies reward long-term customers with loyalty discounts that increase over time. When you switch carriers frequently, you reset the clock and may lose access to those savings—along with other perks that come with an established policy.

2. Claims History Follows You

Shopping around doesn’t erase your claims history. Insurance carriers typically look at claims from the past three to five years, regardless of which company you were with at the time. Switching after a claim often won’t lower your rate—and may even raise red flags with new carriers.

3. Coverage Can Get Trimmed Without You Realizing It

When focusing on price alone, it’s easy to miss coverage differences. A cheaper policy may come with higher deductibles, lower liability limits, or fewer endorsements. Over time, hopping between carriers increases the risk of coverage gaps that only show up when you need to file a claim.

4. Discounts Don’t Always Transfer

Bundling home and auto, claim-free discounts, and longevity credits often don’t carry over when you move to a new carrier. What looks like a lower premium upfront may not reflect the full picture once those lost discounts are factored in.

5. Rate Increases Aren’t Always About You

Insurance rates can rise due to factors outside your control—like inflation, weather events, repair costs, or changes in the insurance market. A rate increase doesn’t automatically mean your carrier is no longer competitive or that switching will fix the issue.

6. Consistency Helps When You Have a Claim

Having an established relationship with your insurance company and agent can make the claims process smoother. Long-term policies often come with better service, clearer documentation, and fewer surprises when it matters most.

When Does It Make Sense to Shop?

There are times when reviewing or shopping your insurance is a good idea, including:

• Major life changes (marriage, moving, new drivers, retirement)
• A significant rate increase
• Changes to your home, vehicles, or business
• Gaps or concerns with your current coverage

The key is reviewing your policy—not automatically switching it.

The Holley Insurance Approach

At Holley Insurance, we believe in proactive policy reviews, not unnecessary policy hopping. If it doesn’t, we’ll explain why. Every client of Holley Insurance is offered an annual policy review and our goal is to make sure your coverage evolves with your life – while keeping pricing competitive and protection strong. If a move makes sense, we’ll tell you.

If it’s been a while since your last policy review – or you’ve experienced a recent change – you can request a policy review here. We’re always happy to take a look and make sure you’re set up for the long run.