Esurance rant

[Quattro Pete]

We moved to another state at the end of last year, and I was forced to switch to another auto insurance company. My credit union highly recommended Esurance (online branch of Allstate), and in fact, they had the most competitive rates out of all the insurance companies that I've looked at. So I went with them and paid the premium in full (6 month term).

However, less than 4 months into the term, they have jacked up the rates by something like 90% so I now have to pay more for the current term. Does anyone else find this ridiculous? I understand small rate hikes at renewal time, but this was a massive hike right in the middle of my first term with them. Totally unacceptable, IMO. I asked them to explain themselves, but am yet to hear back. Even if they made an error in initially calculating my rates, then that's their problem, not mine, since I signed on the dotted line and paid in full for the entire term up front.

Regardless whatever they say, I will be moving to a different insurer soon. There are a few business lines that I truly despise, and insurance is one of them.

Anyway, end of rant. Thanks for listening.

 

[Dave Hess]

Low initial prices are the 'catnip' for consumers. Not really surprised.

Have any of your kids recently got their drivers licenses ?
Maybe that's the reason for the rate hike...

 

[JHZR2]

Im not surprised. Insurance and HVAC (and tow trucks) are some of the most crooked industries out there.

I quoted esurance once a year or so ago and their prices were NOT good compared to others.

Ive been dealing with a little bait and switch on Geico's part due to a many years old seatbelt ticket my wife had. They gave me a teaser, right before I paid they came back with digging that old ticket (many years old at the time). I was assured that it would be off the record in six months and Id go back to the teaser rate. We didnt. Their rate is still good, but its not AS good as their teaser was.

 

[abycat]

almost doubled it! crazy. They agreed on a term and amount of payment so they should have to abide by it. That would not fly up here. Think it might even be illegal.

 

[itguy08]

Interesting. We've been with Esurance for coming on 2 years now and no rate shockers. A initial discount expired but they told us it would in 6 months but the rates are still about 1/2 what I was paying to State Farm for similar coverage.

Our term is up in April and we'll see what they do this time. I'm loyal to no insurance company so if they are high we'll simply shop and go somewhere else.

 

[Quattro Pete]

Originally Posted By: Mr Nice
Have any of your kids recently got their drivers licenses ?
Maybe that's the reason for the rate hike...

Nope. Nothing changed.

The massive hike was on our Q5 specifically. Their initial rate on it was crazy low, and even at that point I questioned the sales rep if possibly they had this vehicle misclassified somehow in their system because it was brand new. But he assured me all was correct.


By the way, does jumping from one ins. co to another every 6 months hurt your rates in any way?

 

[jacky]

i love progressive been with them for years never a problem
have filed claims such as vandalism and glass breakage, rates have never increased, your rates can decrease if you use the snapshot program and they like the way you drive
they offer so many discounts, almost everyone qualifies for some kind of discount
i have used their rental car service, roadside asst many times
all with excellent results
have called them many times all their reps are friendly and speak english well
they accept paypal (a convience for some people)

 

[wallyuwl]

Yeah, it might be illegal for them to jack up the rates in the middle of the term, particularly when you paid in full for the term at the beginning. I would check with your Attorney General's Office.

What state are you in? It says Great Lakes. You might want to check into General Casualty or Acuity. Both are regional insurance carriers in that region. Their rates are not the absolute lowest, but are usually competitive and I've had both and never had a problem (not living in a state currently where they underwrite, but had both in WI). Both are smaller companies.

The benefit of a somewhat smaller company as well is that if you have an accident or something, there is a lot less chance of the "at fault" driver having the same insurance carrier, thus making your insurance carrier also the defendant in your lawsuit against the other driver. I know of a situation where this happened with American Family Insurance and it got drug out forever, for this reason.

 

[HerrStig]

Originally Posted By: Quattro Pete
We moved to another state at the end of last year, and I was forced to switch to another auto insurance company. My credit union highly recommended Esurance (online branch of Allstate), and in fact, they had the most competitive rates out of all the insurance companies that I've looked at. So I went with them and paid the premium in full (6 month term).

However, less than 4 months into the term, they have jacked up the rates by something like 90% so I now have to pay more for the current term. Does anyone else find this ridiculous? I understand small rate hikes at renewal time, but this was a massive hike right in the middle of my first term with them. Totally unacceptable, IMO. I asked them to explain themselves, but am yet to hear back. Even if they made an error in initially calculating my rates, then that's their problem, not mine, since I signed on the dotted line and paid in full for the entire term up front.

Regardless whatever they say, I will be moving to a different insurer soon. There are a few business lines that I truly despise, and insurance is one of them.

Anyway, end of rant. Thanks for listening.

Let me suggest AMICA, not the cheapest but they pay a dividend at the end of the policy term and don't treat their customers like criminals. Their claim service is also first class. Consumers Union rates them wery well. As far as what you have, unless your policy gives them the right to raise rates for negatives discovered after the fact I would contact your state insurance commission and/or attorney general consumer protection office. First, though, review the policy for those little gotchas they gloss over when the sales droid signs you up. Allstate and their offspring have earned the reputation in my trade as "not as bad as they once were" which isn't saying much.

 

[HTSS_TR]

Originally Posted By: Quattro Pete
Nope. Nothing changed.

The massive hike was on our Q5 specifically. Their initial rate on it was crazy low, and even at that point I questioned the sales rep if possibly they had this vehicle misclassified somehow in their system because it was brand new. But he assured me all was correct.

By the way, does jumping from one ins. co to another every 6 months hurt your rates in any way?

No, as long as you have up to date insurance policy, changing from 1 company to another doesn't negatively effect your rate.

Now, if your current insurance policy expired and you are trying to get new insurance then it will hurt your rate.

 

[Dave Hess]

Yep. Never let a policy lapse.

Crazy low rate on your Q5 should have raised red flags about their true intentions.

 

[Indydriver]

Pete, sorry to hear this. I too am a new Esurance customer after getting the run-around on my (then) new Camaro last year. My first term is up in April and not a peep from them since I signed up. We will see if they do something at renewal.

Otherwise, I like how each vehicle is itemized. You can even choose additional coverage for mods (although quite expensive). After my experience doing the self-serve thing on the web, I came away convinced that the days of the insurance agent are numbered.

 

[jacky]

you can go to creditkarma.com (which is free) and find out your insurance score this is different from your credit score those with a poor score may be charged higher rates
i know this has nothing to do with your current situation but it maybe helpful info for somebody
also i dont have any advise for your rate hike but i would switch carriers right away

 

[Oldmoparguy1]

It's AllSnake. What did you expect?

 

[01rangerxl]

Esurance sucks. Like the other online intensive companies, they try to suck you in with a good quote and convenience, then hope you don't notice the premium increases.

When I first started using them, it was also because of a move. The independent agent I had been using wasn't licensed here. I just checked the usual online companies like Esurance, Geico, Progressive, etc. and Esurance was the lowest. Paid what they quoted me, then a couple days later they say they have to increase my rate slightly. Not by much, but it ticked me off that they were already trying to shake a little more out of me. I let them know I didn't like it, but I had other moving things to deal with and just needed quick insurance.

We had a couple snow/ice events around here that resulted in a lot of wrecks, and Esurance went wild at renewal. I had enough and finally started shopping around. At that time, my bank sent me an email advertising insurance services through them/their independent agents with multiple companies. I wound up getting a Travelers policy that was MUCH less than the Esurance policy for the same coverage. And so far they have been nothing but easy to deal with, and at last renewal my premium went down.

My Esurance experience was similar to my experience with Geico a few years before. Buying direct from the big online companies gets you garbage service and expensive premiums. I'd hate to know what their actual claims service is like. I have had much better experience with independent agents who can check multiple companies. I have had GMAC and Travelers from independent agents...and it was always less than buying direct online with better service.

See if your bank or employer offers some sort of insurance buying service or discount.

 

[Quattro Pete]

Originally Posted By: 01rangerxl
I wound up getting a Travelers policy that was MUCH less than the Esurance policy for the same coverage.

Thanks. Unfortunately, Travellers does not offer auto insurance in Michigan. Auto insurance here seems to be such a scam in general, many insurance providers, including my previous insurer (Erie) just refuse to do business here. The best I am currently finding is Liberty Mutual.

 

[mpersell]

I won't touch anything Allstate at all. A relative was with them 20 years, got a minor claim for a broken windshield and the next premium doubled.

 

[simple_gifts]

Originally Posted By: HerrStig



Let me suggest AMICA, not the cheapest but they pay a dividend at the end of the policy term and don't treat their customers like criminals. Their claim service is also first class. Consumers Union rates them wery well. As far as what you have, unless your policy gives them the right to raise rates for negatives discovered after the fact I would contact your state insurance commission and/or attorney general consumer protection office. First, though, review the policy for those little gotchas they gloss over when the sales droid signs you up. Allstate and their offspring have earned the reputation in my trade as "not as bad as they once were" which isn't saying much.


+1 for AMICA;

Not sure why anyone would insure through a publicly traded company rather than a mutual insurance company; In a mutual company the customers ARE the investors, so the mgmt isn't trying to please two sets of people with completely opposite goals.

 

[HTSS_TR]

Originally Posted By: mpersell
I won't touch anything Allstate at all. A relative was with them 20 years, got a minor claim for a broken windshield and the next premium doubled.

Allstate ad "You're in good hands", what they mean is "Your money(all of it) in good hands".

Car insurance is required and needed, but many of them are just crooks.

 

[Nate1979]

When you called them what answer did they give for this hike? I don't understand what you mean they haven't gotten back to you. Seems like in the phone they should tell you why they raised your rates.