Upstate NY insurance company ends operations. What to do next for your coverage needs

After an insurance company based in upstate New York announced plans to wind down its operations last month, leaving its customers looking for new coverage options, you may be wondering what to do if something like this were to ever happen to you.

Buffalo-based Adirondack Insurance Exchange , which offers homeowners, auto and package insurance, identity theft and umbrella protections along with watercraft coverage, began encouraging its customers to find other coverage options on July 12 due to its deteriorating financial position.

According to AAA, the insurance company headquartered in Williamsville will no longer offer insurance as of Jan. 1, 2025. Customers with policy renewal dates of Oct. 1, 2024 through Dec. 31, 2024 will be non-renewed and those with renewal dates beyond Dec. 31, 2024 will be mid-term canceled effective 11:59 p.m. on Dec. 31, 2024.

Here's how affected customers can find the best new coverage.

Why insurance company is pushing customers to secure new coverage

The announcement comes after Demotech, Inc. , a financial analysis firm, withdrew the company's Financial Stability Rating on May 28, according to the company's website .

It's unclear as to why Demotech withdrew its rating. The company did not provide an explanation on its website and Adirondack Insurance Exchange did not immediately respond to a request for comment.

Adirondack Insurance Exchange is managed by Adirondack AIF, LLC, which is an indirectly wholly owned subsidiary of National General Holdings Corporation , an Allstate company.

What affected customers should do

You should contact your insurance agency and talk with your insurance advisor to see if they have any options available to you, says David Kirst, Insurance Sales Operations Manager at AAA Western and Central New York.

"It's more important than ever to make sure you're opening every piece of mail you get from your insurance carrier, so you understand what's happening," Kirst said.

What to know: Upstate NY insurance firm in turmoil, tells clients to seek new coverage

When you should start looking for a new insurance carrier

You should start looking for a new insurance provider pretty quickly.

"Time is of the essence," Kirst says. "You might get better rates by shopping early, but at the same time, you want to make sure you're never left without insurance, so look sooner rather than later."

How to find the best coverage

Insurance carriers have been averaging between 10-20% rate increases every year, Kirst says.

"It's more important than ever to shop around and look and see what else is out there — make sure you always maintain proper coverage levels, but also at the best possible rate," Kirst said.

Here's what insurance company Liberty Mutual recommends you do when searching for the best insurance coverage to meet your needs.

Decide on the coverages you need: Which type, how much coverage you need and what deductible you want.

Decide on optional coverage: Do you need 24-hour roadside assistance? What about water back-up and sump discharge or overflow coverage for your home?

Research the financial health of several insurance providers: Make sure to do business with an insurance company that has served policyholders for a long period of time.

Shop around: Get several quotes and compare insurance.

Confirm you're getting the best price: Don't forget to ask about discounts offered by an insurance company.

Emily Barnes is the New York State Team consumer advocate reporter for the USA TODAY Network. Follow her on Twitter and Instagram @byemilybarnes . Get in touch at ebarnes@gannett.com .

This article originally appeared on Rochester Democrat and Chronicle: Upstate NY insurance company ends operations. What to do next for your coverage needs