By Eric Rosenberg, WCI Contributor

At home and work, most doctors are familiar with the cost of insurance. From auto and home coverage to malpractice, insurance costs add up fast. But you may not be stuck with a bill as big as you have today. When it comes to insurance, brand loyalty rarely pays. If you’ve been with the same insurer for more than two or three years and have not shopped around, here’s a look at what you could save by switching insurance companies.

Here's what to know.

 

Why Physicians Overpay for Insurance

Just like anyone else, physicians are subject to annual insurance rate increases. That rate creep can turn into much higher insurance costs. Even a slight annual increase can turn into thousands of dollars, particularly if you’re loyal and have been with the same insurance provider for many years.

As a busy and well-paid physician, you may brush off the increase and not want to spend time shopping around for new coverage. But that can be a costly mistake. Checking for rates with alternative providers every two or three years should be a part of your personal finance to-do list, no matter your profession and income. Doctors included.

We did some research to find out how much you could save by shopping around for these types of insurance:

Learn more at our detailed guide to insurance for doctors.

More information here:

I Hadn’t Shopped for Insurance in Decades — Could I Have Been Saving Thousands Every Year?

 

Breaking Down the Potential Savings

Remember, you don’t have to search for insurance alone. Working with a trusted insurance broker or independent agent can save you time and effort in finding the best insurance for your unique needs. In fact, The White Coat Investor has vetted insurance agents that we've been working with for many years.

 

#1 Malpractice Insurance

According to one insurer, doctors can save as much as 25% when switching their coverage with the same policy limits and features. Assuming you’re paying $20,000 per year for malpractice insurance, shopping around could save you $5,000 per year. Over the next decade, that’s $50,000.

Remember that your location and specialty have a major impact on your rates, and a history of claims can make malpractice insurance more expensive. You could also save through discounts from your insurer, which you may qualify for by meeting specific risk-management requirements.

 

#2 Disability Insurance

We suggest that nearly all doctors carry long-term disability insurance, and short-term disability insurance is often a good idea as well. After all, physicians can get sick or injured like anybody else. According to the Social Security Administration, one in four of today’s 20-year-olds will experience a long-term disability before age 67.

If you’re employed full-time, you may have access to disability insurance through work. But if you’re self-employed, you’ll have to find coverage independently. And even if you have disability insurance through an employer, it may not be enough to meet your financial needs.

Long-term disability insurance generally costs around 1%-3% of your annual salary, so even a small percentage discount can lead to significant savings. If you get new coverage with a longer waiting period before benefits begin or shorten the term, you could save 30% or more. Since rates often increase as you get older, you may want to keep the policy you already have in place. But it’s still worth looking around for alternatives to be certain.

 

#3 Life Insurance

Life insurance is another kind of insurance that tends to get more expensive over time. However, if you have a policy issued within the last few years, you might qualify for something cheaper if you shop around again today.

If you’ve significantly improved your health or given up a dangerous hobby, you might find lower rates even if you’ve had your policy for a long time. The best time to lock in a rate is when getting life insurance for the first time or topping up your coverage with an additional policy.

 

#4 Health Insurance

While you may have fewer options for health insurance, you may still find money-saving opportunities. You may only have one or two plans available if you work for an employer. When you’re self-employed or pick insurance for your office, you’ll have a wider variety of plans to choose from.

When switching health insurance, you could save hundreds of dollars per family member per month. You may want to compare HMO vs. PPO plans depending on your healthcare needs and preferences. Looking at your state’s marketplace or healthcare.gov can help you sift through additional options.

 

#5 Auto and Home Insurance

Auto and home insurance prices seem to creep higher and higher, or they might take big jumps up in price depending on where you live. This is somewhere you should absolutely shop around every two to three years. You may find big savings when moving to a new insurer.

According to a survey from Consumer Reports, 30% of people switched car insurance companies in the last five years, and those who did saved an average of $461 per year.

Because homeowners insurance prices vary so much by location, estimating what you can save from changing home insurance providers is tough. But if you bundle with auto insurance, opt for a higher deductible, and take advantage of discounts, you’ll find the best possible rates for your situation. Your credit score can also lead to savings in this area.

More information here:

What to Do When Your Insurance Rates Go Up: A Guide for Physicians

What Happens If You Can’t Get Homeowner’s Insurance in Your State?

 

How Much Could You Be Leaving on the Table?

Staying on top of your insurance costs is one of the easiest ways to keep more money in your pocket. Those small rate hikes add up fast, and if you’re not shopping around every few years, you’re probably overpaying. Whether it’s malpractice, disability, life, health, auto, or home insurance, a little research can lead to big savings without sacrificing coverage.

If it’s been a while since you reviewed your policies, make it a goal to get at least one quote this week. A few minutes of effort could save you hundreds or even thousands of dollars per year. Don’t leave money on the table. If you need help, you can start with this list of vetted insurance agents for physicians.

 

Are you paying more than you need to for home and auto insurance? We work with the carriers on Farmers Insurance Choice® to help you secure better insurance coverage at lower prices. Compare quotes from multiple top carriers—all in one place. See how much you could save!

 

The White Coat Investor is filled with posts like this, whether it’s increasing your financial literacy, showing you the best strategies on your path to financial success, or discussing the topic of mental wellness. To discover just how much The White Coat Investor can help you in your financial journey, start here to read some of our most popular posts and to see everything else WCI has to offer. And make sure to sign up for our newsletters to keep up with our newest content.

 

The White Coat Investor may receive compensation from White Coat Insurance Services, LLC; licensed in all states including MA and DC; CA license #6009217; NY license #1758759 (exp. 6/2025); Registered address: 10610 S. Jordan Gateway, #200 South Jordan, UT 84095. This does not affect the cost or coverage of insurance.