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URL:  https://boards.fool.com/don39t-just-go-for-the-cheapest-consider-the-32842695.aspx

Subject:  Re: Insurance Recommendations Date:  9/21/2017  5:45 PM
Author:  R0TJob Number:  39897 of 40286

Don't just go for the cheapest. Consider the service as well.

That is the reason I stick with State Farm, even though my home insurance goes up every year. So does the value of my home, and since my rate is essentially 1% the value of my home, I'd have to pay them for 100 years with no claims to lose money on it. Living in tornado alley makes that a no-brainer for me.

Personal annecdote: In 1998 one of those mile wide tornadoes came within 3/4 mile of my parents' house. It hit my uncle's. His family stayed with us for the next month. He had Geico because they were cheap. While cleaning up his site, 3 different Geico reps drove by and he flagged each down. All 3 told him he was not on their list and they couldn't help him. He finally had to call the 800 number and after about 3 hours on the phone they scheduled someone to come talk to him "in a few days."

The State Farm reps were on site each day, not only with phone book sized lists of all policy holders (this was pre-laptop-mobile era), but also handing out cases of water and lunches. They were writing out $5000 checks to all policy holders on the spot to give them some operating cash until their claims could be processed. Geico was not doing any of this.

He did finally get his claim settled 6 months later. Luckily he was a bit of a miser and had the cash on hand to buy a brand new house 5 days after the tornado. He commented several times that if he didn't have any money stashed, they would be screwed.

He switched to State Farm to insure his new house.
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