Sometimes doing nothing can lead to big problems. And when it comes to auto,  homeowners, and liability insurance the system makes it very easy for consumers to take the path of least resistance.

In most cases, these types of insurance simply renew each year, and the policyholder probably gets a notice of any changes. But many people don't know what their old rates were, so it's easy enough to miss any increase.

That problem may be even worse with home insurance, which many people pay through an escrow as part of their mortgage bill. That one of the reason's why it's important to have an insurance broker..."cough" "cough" (shameless plug... Yes, like ourselves) that's proactive in our service approach. We review your renewals as we receive them and make sure you are still competitive with your personal, and business policies. 

These are bills many people don't check, or they pay them via auto pay. That may be costing you money because they might be able to get better deals if they shopped around, or hired a broker who did that for you.

Despite that, one in three Americans with homeowners or car insurance has never shopped for a better deal, according to a new survey from insurance Property and Casualty 360. In addition, almost half of those who have shopped for alternatives to their current coverage have not done so in the past year.


Money on the table

Insurance rates are not fixed. What you paid last year does not determine what you will pay next year, and insurance companies know that many consumers aren't paying much attention.

It's not uncommon for insurance companies to re-rate on a yearly basis. This is due to tightening profit margins in the industry. Insurers are regularly reevaluating their product to make the most sense in changing markets, making software changes, trying to move business, or pick up business. All this changes year to year.