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(CBS News)   Insurance companies reward loyal customers. With higher rates   (cbsnews.com) divider line 70
    More: Ironic, National Association of Insurance Commissioners, reward website, Consumer Federation of America, insurance companies, customers, Towers Watson  
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7148 clicks; posted to Main » on 08 Apr 2014 at 1:46 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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ZAZ [TotalFark]
2014-04-08 12:32:19 PM  
I was going to shop around the last two renewals, except I had long trips planned for shortly after my policy expired. If I let it expire, the insurance company would tell the state I didn't have insurance any more. The state would revoke my registration for lack of insurance. If I were home I could show them I do have insurance, blow up the RMV building, or otherwise take care of it. On vacation in California, my first notice would be having my car impounded when a license plate scanner saw it. So I renewed with the same company.
 
2014-04-08 01:25:23 PM  
Obvious tag finding new quotes?
 
2014-04-08 01:43:39 PM  
Also, if you are married, don't always use the same spouse for the quotes.

Because of horrible medical bills hitting my credit, the quote for me - then the quote for my husband, were hundred of dollars different, and the only thing changed is who is the "primary" policy holder.
 
2014-04-08 01:47:20 PM  
Flo better not get any ideas.  She's been good to me for years.  I think I get like 3 free accidents at this point.
 
ZAZ [TotalFark]
2014-04-08 01:48:53 PM  
SecretAgentWoman: Also, if you are married, don't always use the same spouse for the quotes.

That had me wondering how many husbands you had.
 
2014-04-08 01:55:04 PM  

ZAZ: SecretAgentWoman: Also, if you are married, don't always use the same spouse for the quotes.

That had me wondering how many husbands you had.


Good idea! Perhaps I should get a few more to spread around the risk ratio and therefore cost.
 
2014-04-08 01:57:52 PM  
While it would be nice, prices can't stay the same forever.  But fark them anyway.
 
2014-04-08 01:58:11 PM  
My agent shops for me.
I just had to buy a car on the fly the other day.
My car needs a head gasket and will take some time to fix, so I just bought a nice, used car from a dealer I know. Second time I've paid cash and driven away from his lot. He gave me a great deal. Less than Kelly BB, so yeah. I called my agent from work and she went over the policy I had on the old car and what the new car was and kept the same policy, and payments. Faxed me a new insurance cord on the spot. I can wait to have the other car fixed now, and will use it for a winter driver. now that I have a nice summer ride.
I may even sell the motorcycle. Just having it parked next to my house somehow forces people to stop and ask if it is for sale.
I could sell it and pay for the car repair now.
Hmmm.
 
2014-04-08 01:59:19 PM  
This just in, markets work.
 
2014-04-08 02:01:11 PM  
They've been doing this for years.
 
2014-04-08 02:03:19 PM  
Ive had Progressive for about 6-7 years now.  Lowest rate at the time, still (by far) the lowest rate I can find when I shop around.  The only times I have used them (for minor things), I have had no problems getting them to pay.  Rates never increased after these few, minor claims.  I have no idea if they would be nearly as helpful for a major claim, but, in my experience, all auto insurance sucks when you have a major claim.
 
2014-04-08 02:03:31 PM  
call your existing insurer to tell it you'll be moving your coverage. If the insurer immediately offers a better price, said Hunter, you had been PO'ed.

What utter baloney. If you call your insurer and they find some additional credits or something that you didn't know you qualify for, that's one thing. Insurers in most states don't just get to pull your premium out of thin air. They can't arbitrarily raise and lower that premium because of your phone call, either.

Protip: in many states, the insurer can use your credit score to determine a rating factor that goes into making up your final premium. If you are married, put the person with the best credit on the application first because that's (probably) the only score they'll run. Credit checks cost those companies money, yo.
 
2014-04-08 02:03:42 PM  
Thanks alot
i457.photobucket.com

It's all your fault
 
2014-04-08 02:03:51 PM  
Insurance companies always try harder to win new business than to retain.

Though they also typically have incentives for staying despite a slightly higher rate.  Accident forgiveness is a pretty good benefit.. or 'vanishing deductible'.
 
2014-04-08 02:03:59 PM  
It's like a job, want a raise, get another job.
 
2014-04-08 02:04:49 PM  
I'm a bit skeptical about this.  At least in the states where the insurance company I worked with did business, the rate hikes had to be approved by the insurance regulator for that state, and in order for him to approve they had to be "actuarially sound" on both sides, meaning it had to show you could cover losses and expenses, but it also had to show you weren't just taking profit to take profit (combined ratio of around 95 is what they shoot for I think).  Sure the insurance companies would try to manipulate the numbers to LOOK like they were going to hit 95 when they really thought they would come in at 92 or 93, but even if they get that through it's going to make the next hike more difficult.

This makes good press but I'm guessing this is just a smokescreen for the fact that some of them will get you in at lower rates knowing that the inertia is there and they'll get you to the right average soon enough with a low chance of you leaving.

if that's true, you'll ahve to switch policies every few years to keep that premium, and speaking for myself I don't have the time to waste doing it.  I know my agent, I know my policy, so it doesn't hit the threshold of savings for me to put in the work of switching.
 
2014-04-08 02:05:38 PM  
Yep....happened to me after having the same company for 5+ years.  I finally shopped around and found MUCH lower prices.  After calling to cancel and getting bounced around to a "sr. accounts manager", I was then offered a lower rate.

I told her they should have been offering me a discount for customer loyalty and adios.

My current company, Progressive offers - you guessed it - a customer loyalty automatic rate reduction.

I still shop around at least every two years and no one can touch their rates.
 
2014-04-08 02:06:06 PM  

MugzyBrown: Insurance companies always try harder to win new business than to retain.

Though they also typically have incentives for staying despite a slightly higher rate.  Accident forgiveness is a pretty good benefit.. or 'vanishing deductible'.


these were definitely on the rise when I was there.  Roadside assistance, hell we even toyed with offering credit protection..
 
2014-04-08 02:08:23 PM  

MugzyBrown: Insurance companies always try harder to win new business than to retain.


That's an interesting take - typically, renewal business is the real money maker.  It costs the insurer a LOT more money to issue and underwrite a new policy than it does to renew an existing one.
 
2014-04-08 02:08:56 PM  

PawisBetlog: MugzyBrown: Insurance companies always try harder to win new business than to retain.

Though they also typically have incentives for staying despite a slightly higher rate.  Accident forgiveness is a pretty good benefit.. or 'vanishing deductible'.

these were definitely on the rise when I was there.  Roadside assistance, hell we even toyed with offering credit protection..


I was a GEICO guy for a few years until I moved to PA.  For whatever reason GEICO's rates in the Philly area were much more than Progressives.. I've been with Progressive now for a good 7 years.  I don't put too much effort into caring about my auto insurance.

Homeowners I've had to shop a couple of times, but have a broker for that.  I think it's worth having a broker/agent for homeowners in case there's a claim.
 
2014-04-08 02:09:52 PM  

KrustyKitten: That's an interesting take - typically, renewal business is the real money maker.  It costs the insurer a LOT more money to issue and underwrite a new policy than it does to renew an existing one.


I know, but it's true.

You see it more in commercial insurance than personal, since carriers can fight more on price.
 
2014-04-08 02:11:11 PM  

KrustyKitten: MugzyBrown: Insurance companies always try harder to win new business than to retain.

That's an interesting take - typically, renewal business is the real money maker.  It costs the insurer a LOT more money to issue and underwrite a new policy than it does to renew an existing one.


The reason tehy try harder for new business is the retention rate for most companies is in the high 90s.  Once you have a policy you tend to forget it unless they screw something up or you have a claim.  Something like 60% of insurance company switches are within 6 months of a claim with their current (now former) carriers.
 
2014-04-08 02:12:14 PM  
Companies don't try as hard on customers that don't bother shopping around.

l-userpic.livejournal.com
 
2014-04-08 02:13:21 PM  

MugzyBrown: KrustyKitten: That's an interesting take - typically, renewal business is the real money maker.  It costs the insurer a LOT more money to issue and underwrite a new policy than it does to renew an existing one.

I know, but it's true.

You see it more in commercial insurance than personal, since carriers can fight more on price.



That's an excellent point and it makes sense in that context. Commercial is different in many ways from the standard PL policy TFA seemed to be referring to.
 
2014-04-08 02:16:15 PM  

vudukungfu: My agent shops for me.
I just had to buy a car on the fly the other day.
My car needs a head gasket and will take some time to fix, so I just bought a nice, used car from a dealer I know. Second time I've paid cash and driven away from his lot. He gave me a great deal. Less than Kelly BB, so yeah. I called my agent from work and she went over the policy I had on the old car and what the new car was and kept the same policy, and payments. Faxed me a new insurance cord on the spot. I can wait to have the other car fixed now, and will use it for a winter driver. now that I have a nice summer ride.
I may even sell the motorcycle. Just having it parked next to my house somehow forces people to stop and ask if it is for sale.
I could sell it and pay for the car repair now.
Hmmm.


I always like your way of thinking. However I rarely get to see a Farker's real story unfold, let alone with such positive nonchalance and aplomb. Two thumbs up! Thanks!
 
2014-04-08 02:16:17 PM  
No news here.  It's actually surprising it took this long so see a story about it.  Progressive has been doing this since back when they were still the new company on the block.  I think it's been well over a decade since they played their game with me:  You use their website to get that great rate just like on the commercials.  Then the renewal rate for the 2nd year is not nearly as great.  If you're stupid enough to let it automatically renew the 3rd year you'll get bilked.  No Flow around to help you then.
 
2014-04-08 02:18:31 PM  
USAA for the past 25 years. Rates have crept down as the cost of replacing the cars has gone down, the way it should be. It doesn't hurt that I've never been in a (reported) accident.
 
2014-04-08 02:20:39 PM  

Diogenes: Flo better not get any ideas.  She's been good to me for years.  I think I get like 3 free accidents at this point.


I've been with them for 10 years.  I get one free vehicular homicide.
 
2014-04-08 02:20:41 PM  
Thanks, Obama.
 
2014-04-08 02:20:46 PM  

Dinkledort: No news here.  It's actually surprising it took this long so see a story about it.  Progressive has been doing this since back when they were still the new company on the block.  I think it's been well over a decade since they played their game with me:  You use their website to get that great rate just like on the commercials.  Then the renewal rate for the 2nd year is not nearly as great.  If you're stupid enough to let it automatically renew the 3rd year you'll get bilked.  No Flow around to help you then.


Must be your issue, my progressive premium has been more or less the same for 7 years
 
2014-04-08 02:26:50 PM  

MugzyBrown: Dinkledort: No news here.  It's actually surprising it took this long so see a story about it.  Progressive has been doing this since back when they were still the new company on the block.  I think it's been well over a decade since they played their game with me:  You use their website to get that great rate just like on the commercials.  Then the renewal rate for the 2nd year is not nearly as great.  If you're stupid enough to let it automatically renew the 3rd year you'll get bilked.  No Flow around to help you then.

Must be your issue, my progressive premium has been more or less the same for 7 years


ditto. And not only to the beat everyone else, I  typically pay them about half what the other companies are quoting me.
 
2014-04-08 02:27:47 PM  
Been with Farmers for more than ten years now, both home and auto, and rates have been reasonable and steady-eddy all along. This is in spite of the fact that where I commute, I manage to have at least one glass claim per year on the truck. Homeowners has had one increase of around 4% about three years ago.
 
2014-04-08 02:28:07 PM  

ZAZ: I was going to shop around the last two renewals, except I had long trips planned for shortly after my policy expired. If I let it expire, the insurance company would tell the state I didn't have insurance any more. The state would revoke my registration for lack of insurance. If I were home I could show them I do have insurance, blow up the RMV building, or otherwise take care of it. On vacation in California, my first notice would be having my car impounded when a license plate scanner saw it. So I renewed with the same company.


You don't have to shop at renewal time. You can switch at any time at all. Find out when your new insurance coverage starts, then call your old insurer to cancel. They'll prorate anything you've already paid past that cancel date and send you a refund.

I found a local agent who shops for us, switching something every 2 or 3 years. Her initial rates were very good, and she does a lot of shopping for us - we would ask for quotes on houses we were considering making offers on. It's been a great arrangement for us, I recommend getting quotes from an agent the next time you're shopping too. Well, an independent agent. I don't think I'd want one who is basically an employee for a single insurance company.
 
2014-04-08 02:28:10 PM  

Sticky Hands: ditto. And not only to the beat everyone else, I  typically pay them about half what the other companies are quoting me.


That's nothing, they pay me to be their reinsurer.
 
2014-04-08 02:34:03 PM  
I dumped GEICO a few years ago after I had an accident. Christ they made every single aspect of dealing with a claim a major pain in the butt. The way it felt was like I was the first they ever had. Kept on telling me I needed to send them this and that and this form and that one. And to thank me for my trouble they raised my rates because some guy ran a stop sign and t boned me. When I dumped them for USAA thats when they started treating me like a person. They turned into a stalker ex girlfriend, calls, letters and emails, the calls stopped after a month but I still get the letters and emails.
 
2014-04-08 02:41:21 PM  

vudukungfu: He gave me a great deal. Less than Kelly BB, so yeah.


If you ever pay Kelley Blue Book Retail for your car there's a name for you that is not very polite. The only reason I even look at Kelley is to start negotiating up from the trade-in value at the dealer. On any decent car the spread from wholesale to retail in that book is $3,000+ (usually over $5k on a $20k car) using the excuse that your car has to be reconditioned - read as spending $20 to detail it and $5 to replace that bulb that's been out.

As an example I just looked up a 2012 Honda Accord with 36k miles - something that would just be coming off lease in the next few months. Retail is $18,125, trade-in is $14,368. Even if you allow for the dealer to make $1,000 (5.5% margin) on the deal that's $2,800 in reconditioning costs - does that even sound reasonable for a three year old off-lease car? Or do you suspect the dealer really intends to put most of that $3,800 in their pocket? (20%+ margin on a commodity product?!?!)

And consumers have fallen for Kelley's story hook, line, and sinker.

MugzyBrown: For whatever reason GEICO's rates in the Philly area were much more than Progressives.


Living in Central PA I pay only $53 a month for GEICO's maximum limits coverage on my S4. Other than my parents, I don't know anyone who pays as little as I do and especially not on a car like that.
 
ZAZ [TotalFark]
2014-04-08 02:43:34 PM  
OccamsWhiskers

What I've heard is, a significant part of your premium is nonrefundable in Massachusetts. If you have a $1,000 per year policy and cancel after 6 months, you owe about $650 rather than $500.
 
2014-04-08 02:46:44 PM  

Jekylman: USAA for the past 25 years. Rates have crept down as the cost of replacing the cars has gone down, the way it should be. It doesn't hurt that I've never been in a (reported) accident.


Every time I got a ticket or in an accident (none recently) USSA lowered my rates.
 
2014-04-08 02:50:18 PM  

Inflatable Rhetoric: Every time I got a ticket or in an accident (none recently) USSA lowered my rates.


maybe you should try a DUI
 
2014-04-08 02:56:35 PM  

MugzyBrown: Inflatable Rhetoric: Every time I got a ticket or in an accident (none recently) USSA lowered my rates.

maybe you should try a DUI


mmmmm, don't think so.
 
2014-04-08 03:05:01 PM  

SecretAgentWoman: Also, if you are married, don't always use the same spouse for the quotes.

Because of horrible medical bills hitting my credit, the quote for me - then the quote for my husband, were hundred of dollars different, and the only thing changed is who is the "primary" policy holder.


That's only because men are better drivers.

I keed, I keed.

The Evil Human I used to share a marriage with, worked in the insurance industry. She made sure that we had new policies for everything, every year, as the first year is a teaser rate, and it will go up each and every year there after.

Captive audience, and all that.
 
2014-04-08 03:07:09 PM  
Hmmmm, I too have Progressive and my policy is up for renewal this month. I do the monthly payments (which i know they offer a discount for paying the policy the 6 month chunk at a time) and noticed my payment would be going up about $10 with my automatic renewal, so maybe this explains it. I haven't made any claims or had any tickets since I've had their insurance and when I moved back in September, changing my address actually lowered it. So it did seem really odd that it would be going up for being with them longer...
 
2014-04-08 03:07:49 PM  

Jekylman: USAA for the past 25 years. Rates have crept down as the cost of replacing the cars has gone down, the way it should be. It doesn't hurt that I've never been in a (reported) accident.


Interesting, I've just started shopping around because they've been doing the opposite to me the past couple years. Same vehicles, no accidents, but the rates are climbing at every policy renewal.
 
2014-04-08 03:20:55 PM  

Slam1263: SecretAgentWoman: Also, if you are married, don't always use the same spouse for the quotes.

Because of horrible medical bills hitting my credit, the quote for me - then the quote for my husband, were hundred of dollars different, and the only thing changed is who is the "primary" policy holder.

That's only because men are better drivers.

I keed, I keed.

The Evil Human I used to share a marriage with, worked in the insurance industry. She made sure that we had new policies for everything, every year, as the first year is a teaser rate, and it will go up each and every year there after.

Captive audience, and all that.


ISPs do the same crap.  They lure you in then offer a token discount to setup auto payments via cc or bank account.  Four years ago I signed up for internet at our new house.  It was $19.99/month when we signed up.  We're looking at switching our cellular around now that our kids are getting phones so I actually whipped out the current bill.  Holy Fark!  We're paying $45/month PLUS $5 per month "rental fee" for the frickin' router.  Yes, I've rented a $50 router for 4 years and paid $240 for it (and I don't even get to keep it).  Now we're looking at changing that around, too.  My fault, but it still pisses me off.
 
2014-04-08 03:25:18 PM  
My insurance agent has a sign in his front window that say "Liability coverage as low as $35 a month" I've been with them for 15 years and pay $45 a month, I'm 50, clean driving record with no claims in almost 20 years, I asked him who the fark actually qualifies for that rate, he never answered.
 
2014-04-08 03:26:24 PM  
Nationwide did this to me back in 1999, I bought a used car from a new car dealer and the dealer got the local Nationwide agent to write me a policy  for six months.

When it came up for renewal they raised my rate by over 30%, when I called to find out why I was told that the Ins Commissioner told them(the agency) they had to "raise my rates, and oh by the way we were told to raise everyone's rates"!

Well I called the Ins Com. and they told me that noone had ordered any ins carrier they had to raise any rates!!!

When I contacted the agent and told them I called about the increase they maintained that they "had" to!!

At this point I called Ins Discounters, they do a comparison of several companies, and Nationwide was at the top of the list with the highest rate, Prudential had the best and when I contacted a Prudential agent it went even lower!

This happened in Texas where I was working for a company that hauls RR crews to and from various places along the railroad, using a company van that I took home, so I actually used my car very little, and only when I was off duty!

The moral of the story is; never trust anybody in the Ins business, it is a racket!
 
2014-04-08 03:31:04 PM  
I've been with Progressive for about 10 years and my rates go down every year. And of course you get different perks and discounts the longer you stay with them.
 
2014-04-08 03:33:30 PM  

Too Pretty For Prison: Yes, I've rented a $50 router for 4 years and paid $240 for it (and I don't even get to keep it). Now we're looking at changing that around, too. My fault, but it still pisses me off.


The ISP likely won't give you a choice. They'll tell you that you can't use your own modem or router. They're all doing this shiat now. Comcast lets me use my own stuff, but I had to talk them into it. Verizon was no-way-jose about it, but they're the worst telco for farking you in the ass, IMO.
 
2014-04-08 03:38:09 PM  
That is to say, the premises of free marketism are completely full of shiat in any real world examination?

Amazing.  Who could have guessed that long term contracts, large corporations, monthly payments, and paying for basic security could cause easily abused externalizes that artificial pricing wouldn't allow.
//The rent is too damn high.
 
2014-04-08 03:47:44 PM  

ZAZ: I was going to shop around the last two renewals, except I had long trips planned for shortly after my policy expired. If I let it expire, the insurance company would tell the state I didn't have insurance any more. The state would revoke my registration for lack of insurance. If I were home I could show them I do have insurance, blow up the RMV building, or otherwise take care of it. On vacation in California, my first notice would be having my car impounded when a license plate scanner saw it. So I renewed with the same company.


Wait, in Mass they can impound your car for not having it insured?

 

jigger: Too Pretty For Prison: Yes, I've rented a $50 router for 4 years and paid $240 for it (and I don't even get to keep it). Now we're looking at changing that around, too. My fault, but it still pisses me off.

The ISP likely won't give you a choice. They'll tell you that you can't use your own modem or router. They're all doing this shiat now. Comcast lets me use my own stuff, but I had to talk them into it. Verizon was no-way-jose about it, but they're the worst telco for farking you in the ass, IMO.


I just did this last month with Comcast and it was a pretty simple process.
 
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