Insurance Ploy

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Apr 18, 2015
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So, leave them.

Complaining on BITOG isn't going to get them to reduce your rate.
You're not following. He was bringing awareness to fellow members not complaining. The point isn't to "get them to reduce your rate". The point is to bring awareness here about the way insurance companies are taking advantage of the paying customers instead of properly protecting them. Awareness of important car related issues and solutions is the main focus here isn't it?
 
Joined
Oct 15, 2022
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But auto insurance companies have doubled to tripled profits so it’s all moot isn’t it?



Costs to insurance have gone up far slower than inflation and using average miles is kind of a kick in the pants to the 90% who drive under the average and the increased number of folks who don’t drive at all.

We have a small percentage of society putting on all the miles and we all pay for the small subset of super users driving over 120,000 miles a year.
How can 90% of folks drive under the average?
 

hrv

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Sep 14, 2021
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IMO depends on the company. Many of them lure you with a significantly lower rate to get you to make the move. After a couple of years they slowly, incrementally increase your policy. If you don't pay much attention to a slight increase that sure is a dream for the Ins Co. That's been my experience in NY over the last 25 years or so.
Thats why I shop EVERY year...You dont have to stay with your company for years...
 
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It doesn't justify a 50% increase in rates though...insurance company expenses have not gone up by that much...they are at the very least profit padding, if not outright gouging...
I agree. I was just pointing out that it is a contributing factor. Inelastic demand and what not.

I usually get quotes every 6 months or so. In the last week I have received quotes ranging from $1500/year to $5k/year.

These Insurance quotes are way too expensive considering we have no tickets, claims, or accidents and 3 out of my 4 cars have 200k miles and are 20 years old.
 

CKN

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IMO depends on the company. Many of them lure you with a significantly lower rate to get you to make the move. After a couple of years they slowly, incrementally increase your policy. If you don't pay much attention to a slight increase that sure is a dream for the Ins Co. That's been my experience in NY over the last 25 years or so.
I would agree that there are incentives for new customers. Almost all insurance companies do have special category spiffs for new customers.
 
Joined
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When I started my policy with Geico, I believe they did lure me in with a lower rate, however, they didn't gradually raise it. They left it the same for 2 years, which brings us to now, and then they jacked it up 50%. Did they actually think I wouldn't notice?
Geico did similar to me as well.
 

Astro14

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You're not following. He was bringing awareness to fellow members not complaining. The point isn't to "get them to reduce your rate". The point is to bring awareness here about the way insurance companies are taking advantage of the paying customers instead of properly protecting them. Awareness of important car related issues and solutions is the main focus here isn't it?
We disagree on what he was doing. One post was enough to raise awareness.

Multiple posts on the cost increases, without offering anything other than incredulity and frustration, crosses over into complaining.

I am well aware, as I suspect many are, of how insurance companies operate, of how rates have changed, of how they justify doubling the rate on a customer who has zero tickets, zero accidents, even as that customer (me) reduced the number of drivers on their policy.
 
Joined
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We disagree on what he was doing. One post was enough to raise awareness.

Multiple posts on the cost increases, without offering anything other than incredulity and frustration, crosses over into complaining.

I am well aware, as I suspect many are, of how insurance companies operate, of how rates have changed, of how they justify doubling the rate on a customer who has zero tickets, zero accidents, even as that customer (me) reduced the number of drivers on their policy.
Understood, thank you for taking the time to clarify that.
 

grampi

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Not everyone can afford the best. The cost of everything has skyrocketed but my pay has not changed.
I would say that State Farm is not the best, probably not even close. They are well known, which is probably why a lot of people THINK they're one of the best companies...
 

grampi

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Just left GEICO for that very reason. Took my auto, home, and umbrella policy with me.

When I left USAA a few years ago, GEICO was $1,700/year for 6 cars, with two kids on the policy.

Fast forward, with 6 cars and one kid (who is 29, with a clean record), GEICO is up to $4,000. Same boilerplate hogwash on the "factors". Same price as USAA.

So, I left. I'm back with USAA. There is no loyalty demonstrated by those companies towards long term customers, and I am no longer loyal to them. I've been with USAA for 36 years. That doesn't get me a single dime in savings...
USAA does have that subscribers payback deal once a year. I usually get enough from that to pay a one month premium...
 

JHZR2

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But vehicle insurance “payouts” have decreased annd have not inflated and Americans are still driving far fewer miles than before the pandemic.

Despite this reduction in miles, risk and payouts insurance has doubled in some areas while making record profits


Private insurance should be illegal, close down all the bums
This is true. They work hard to steer you into a preferred shop that does subpar (inconsistent with OE practices) work, poor quality parts, etc.
 

JHZR2

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Absolutely.
In the other recent insurance thread, I posted about an experience I had with my in laws.
They are both pushing their eighties, and have never been what one would call thrifty with their money.
So now after several concerns with money, coupled with some issues about my MIL's health (she has always handled the financials in their household) the three children became actively involved.
Of the three children's spouses, I am known as the one with the best business sense. Thus, I was recruited by Mrs. Tdbo and her sister.
Spent five hours going through everything, and found beaucoup issues. The one that was most glaring was their home/auto policies.
They were married in the early 60's, and had always been with the same companies and even the same agent.
I told the FIL he needed to shop his insurance, and even who to call. He argued about that, however agreed to (I think in an attempt to prove me wrong.)
So he did, and even he was stunned. His homeowners went from $2750./year to $1170., with better coverage. Auto went from $1100. year, to $570.
So definitely, premium creep is a real thing. Yes, many companies benefit from it.
However, the one thing that always fascinates me about these threads is that people generally give their business to the worst offenders of premium creep. Yes Flo's and Gekko's and their stupendously dumb commercials create real overhead, and provide no value.
In many venues there are regional companies that provide real value with competitive rates, with minimal or no premium creep. These companies can be uncovered with a quality independent agent or broker. I have been with my company 29 years, and I shop insurance every two years. After 20, I did a particularly deep dive into shopping rates. The best that I could find (through a "Deal" that they had at the time with my college alum association) would have saved me $50./year combined on both my home/auto. This was with a company that is well known for jacking rates upon renewal. I might add, their initial quote was substantially higher than what I was paying with my company. After they asked who I was with and put me on hold for 15 minutes, they came back with the $50. less. Why would I want to change from a company that was extremely competitive, to one that would stick it to me upon renewal?
I'm all for shopping the rates, but do the deep dive and find a true array of companies. Why keep bouncing back and forth between the Jake's and the Flo's and the Gekko's, when there may be a quality company out there that does not spend tons of money on advertising, jingles, and mascots. The best way to shop is with an independent agent, agents, or broker(s) that know who these companies are, and can present a wide array of quotes.
Companies such as…?

We liked travelers, but they started to creep too far, went to California Casualty. Had never heard of them….
 

Astro14

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USAA does have that subscribers payback deal once a year. I usually get enough from that to pay a one month premium...
Good point. One that figured into my total cost comparison. USAA is now cheaper than GEICO since GEICO more than doubled their rates on me. With the SSA payout, it’s a significant difference.
 
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Grampi,
Your cant assume Progressive is going to pull the same "stunt" as Geico did. You have yourself upset before the event happens. ;)
With that said, its no secret I have been preaching in this forum for the last decade (not directed at you in anyway) that I check insurance rates at least two times a year to make sure I am paying the lowest possible cost on insurance.
You are 100% correct as far as some, maybe most insurance companies, the first year, or two or three can be "come on" rates, promotions to get your business then raise the price.

I have noticed this most often with homeowners Insurance and it works out well for me. Why? because I get super cheap rates for the first year, sometimes a few years and when the rate starts going up I switch to another company, anytime, anytime of the year if I find a better rate, its goodbye to the current company. Some people think you switch at the end of a policy, you can switch companies as often as you buy gas at different gas stations, the existing company will send you a refund check for the difference of the remaining time you would have had on the existing policy. I see someone mentioned Travelers Ins. I had their homeowner insurance for a good 4 years of solid cheap rates. In the 16years we owned this home I switched companies at least 5 times on homeowners, and the last 4 years Travelers had them all beat by hundreds and hundreds of dollars, only recently did they start creeping up but no longer a concern because we just sold our house, literally !

I will say, many years back I dumped Geico on all my vehicles because they no longer are the cheapest, not even close anymore. Right now esurance (an Allstate company) has been best for me on cars only.

If it means anything to you, as far as Progressive, I use them for two things and two things only are they the cheapest for me and have been for many, many years. I cant find a better price on our Motorcycle and Boat insurance than I can with Progressive. It's so darn cheap, it's stupid and most of all, Im trying to remember but I think they recently lowered the price a couple percent more.

Any other discussion as far as rates is fruitless, as insurance companies pricing varies by location, credit history, family history, households ect but mentioned companies are always a good place to start. It's sooooooo easy on the internet.

PS. we had severe rate creep with State Farm. That is when I learned (about 15 years ago) loyalty means you will pay more because your risk of switching companies is low and they know that. Between our possessions and another family member and a significant business policy what started off great with State Farm turned out no longer great, except our business ins which we still have them and just the business.
Our combined policies at the time must have been around 10k a year, no more, they lost that part.
 
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4WD

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Geico did this to me after like 11 years, simply started jacking my insurance by a LOT - like 15-20%. First time I paid since they hadn't raised it in years. Second time I switched, and the agent I went to said the same thing. Its a game they play. If 2 pay and one switches, they win.
Gotta pay for racing boats 😷
 
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I had Geico for years and they never raised my rates for years until out of the blue it started. Dropped them like 5 years ago. So far Liberty Mutual (under the Safeco branding) has actually lowered my rates a little each year. I think your stuck just shopping every year.

Here is a timely article about the 10 largest insurance companies. It seems there used to be a lot more. This might be one reason why were seeing more shenanigans - once you get a certain size it becomes much harder to grow.

 
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