shopping for auto insurance

[pb4uski]

We found AAA Insurance to be very competitive in FL. Not sure how competitive they are in CA.

 

[teejayevans]

We found AAA Insurance to be very competitive in FL. Not sure how competitive they are in CA.

I found the opposite, Geico was a fraction of what AAA had me in. When I canceled they said they might be able to look for a competitive rate?!

I told them that’s your job and I shouldn’t have to quit to get that service.

 

[OldShooter]

Retired independent agent here. Though I understand the desire to black out premiums, agents have little or no leeway over rates. We plug in the data and then the insurance company applies their magic formula to calculate a premium. Knowing or not knowing your current premium has no effect on the calculation. But knowing how much you're paying now will help the agent narrow down which companies to quote and which ones are likely to beat your premium, if any. ...

I get that, but my blacking out rates is just a general policy; I try to never give any project bidder any other bidder's price. In the worst case, as you imply, blacking out the current prices has no effect on the prices I get back. That's OK.

Re "narrow down companies" not sure I understand. If you have companies that you know will be more expensive than others, why wouldn't you automatically omit them? Worst case for you is maybe the best price you can find is higher than my current company's price. But it's not always all about price. If I am unhappy with my current carrier for some reason I may be willing to look at a higher price.

For example, long ago when I was dumber than I am now, I shopped price on my own and picked a tied-agent company. A couple of weeks after the policy was issued I got a letter saying that they had inspected my property and if I did not remedy the conditions their inspector had identified they would cancel the policy. One of them was some tree branches that were rubbing an an area of the eaves. Another was to add a railing to two porch stairs where the railing was not required by code or FHA. I saved them the trouble of canceling, did it for them. I am sure you have seen things like this.

... Some of the online companies (you know their names) will reduce your coverage to lower your rate. Less liability, no medical, higher deductibles, etc.). But that does not help you! I used to say that a 1/2 gallon of milk will save you money compared to a gallon, but you're getting half as much!

Also, too many of the large companies will give you a great rate the first year and then steadily raise the rates each renewal. I hated that practice as much as my clients did. Some regional companies are more steady with their rates. Here in IL, for example, Pekin does not play games with rates. I've been insured with them for about 10 years and my renewal rates are lower today than they were ten years ago.

Music to my ears. This is why I am a believer in independent agents. No tied agent will never explain any of this to a customer, potential or current.

 

[brett]

There have been several studied done in the UK regarding home and auto insurance.

The conclusions have always been similar. Long term customers pay more than new customers for insurance products...like for like. Essentially two pricing models.

My understanding is that the UK has instituted trading practice regulations that ban this type of pricing. Bottom line is same price sheet for all customer-renewals or new business.

We experienced this last year with our home insurance. Renewal was 25 percent higher. Went to the insurers on line quote system as 'a prospective new customer' and got a rate different rate. Called the insurer and after some discussion they agreed to treat me as a 'new' customer. That rate was 24 percent less than the renewal rate that the expected me to swallow.

 

[brett]

There have been several studies done in the UK regarding home and auto insurance by various groups-consumer and otherwise.

The conclusions have always been similar. Long term customers pay more than new customers for insurance products...like for like. Essentially two pricing models.

My understanding is that the UK has instituted trading practice regulations that ban this type of dual pricing. Bottom line is same price sheet for all customer-renewals or new business.

We experienced this last year with our home insurance. Renewal was 25 percent higher. Went to the insurers on line quote system as 'a prospective new customer' and got a rate different rate. Called the insurer and after some discussion they agreed to treat me as a 'new' customer. That rate was 24 percent less than the renewal rate that the expected me to swallow.

From now on we test our quotes every two years OR if the YoY increase exceeds five percent. It only takes a few moments to ball park the number on line.