Re-Shop Your Car Insurance Right Now

[wmc1000]

Before switching when we moved to our current location, I'd literally had SF since the 70's (back when you needed a current policyholder to recommend, as I seem to recall)
When we checked what the costs were in our current location, when moving there, the increase in costs for identical coverage that we had before was very significant. I then talked to an insurance broker for quotes for identical coverage and compared to the SF quote. One aspect on SF policies is that certain aspects are paid for EACH vehicle that you insure or may be duplicated in other policies that you purchase whereas other companies only charge for the coverage on whole package. I examined the SF quote and found this definitely adds up and yes we already had included decreases due to multiple policies (HO, vehicle, umbrella) and use case (retirees often get reductions since they generally drive less and when they do it is in lower traffic timeframes, so less likelihood of accidents caused by others)

We ended up with Erie, which is also very highly rated, at a significant savings. They carry coverage for HO, vehicle, and umbrella.

Erie is who we have also for home, auto and umbrella!

 

[COcheesehead]

None of the above pertains to the new customer price incentives you referenced.

I was in the industry, and understand how premiums are set, and understand how rate increases are presented to each state for review. I've never heard of new customer price incentives being approved by state regulators in the insurance industry, at least not to date.

So how do YOU explain the price differences since you have industry experience?

 

[ElizabethT]

So how do YOU explain the price differences since you have industry experience?

This isn't what we are going back and for on. My assumption at this point is that you didn't mean to specify 'new customer price incentives,' in your earlier post, which, again, I don't believe are legal to offer at this point.

 

[COcheesehead]

This isn't what we are going back and for on. My assumption at this point is that you didn't mean to specify 'new customer price incentives,' in your earlier post, which, again, I don't believe are legal to offer at this point.

You aren’t addressing why there are prices differences. You have industry knowledge. I think we’d all like your insight.

 

[ElizabethT]

You aren’t addressing why there are prices differences. You have industry knowledge. I think we’d all like your insight.

Super complicated, as you would likely suspect. Basically, each insurance company looks to their own history of claim payouts in order to attempt to slice and dice on a variety of factors (age, vehicle type, driving experience, zip code, commute and annual mileage, and on and on and on) to attempt to identify exactly what risk factors appear to be the most relevant in predicting future claims.

They then present those findings to their state insurance regulatory commission for review and, hopefully, approval. Sometimes their filings are accepted, sometimes they are rejected, but most times they are sent back in order for the insurer to recalculate factors the insurance regulatory commission finds lacking in cause and effect data.

How well each company slices and dices their claims history risk factors determines their overall profitability. The better they assess specific risk factors, the more accurate their rates, and the more stable their pricing. When they identify areas where claims history is exceeding their rating factors, the re-assess and refile with their state insurance commission.

Because of the challenge in getting their rates 'right' with regard to risk factors, it 100% pays to shop from time to time. Some companies do a better job than others, and if you fall into a sweet spot of having low risk factors, shopping will help you determine what company has your particular sweet spot.

Final note on captive vs independent agents. Captive agents represent one company, independent agents represent many. However, one is no inherently better than another. All the consumer should be concerned with is premium rate and reputation for claims handling. Independent agents do not necessarily inform you of your very best rate. Their payment incentives vary by insurance company, and you can be sure they will promote the companies that pay them the most.

 

[COcheesehead]

Super complicated, as you would likely suspect. Basically, each insurance company looks to their own history of claim payouts in order to attempt to slice and dice on a variety of factors (age, vehicle type, driving experience, zip code, commute and annual mileage, and on and on and on) to attempt to identify exactly what risk factors appear to be the most relevant in predicting future claims.

They then present those findings to their state insurance regulatory commission for review and, hopefully, approval. Sometimes their filings are accepted, sometimes they are rejected, but most times they are sent back in order for the insurer to recalculate factors the insurance regulatory commission finds lacking in cause and effect data.

How well each company slices and dices their claims history risk factors determines their overall profitability. The better they assess specific risk factors, the more accurate their rates, and the more stable their pricing. When they identify areas where claims history is exceeding their rating factors, the re-assess and refile with their state insurance commission.

Because of the challenge in getting their rates 'right' with regard to risk factors, it 100% pays to shop from time to time. Some companies do a better job than others, and if you fall into a sweet spot of having low risk factors, shopping will help you determine what company has your particular sweet spot.

Final note on captive vs independent agents. Captive agents represent one company, independent agents represent many. However, one is no inherently better than another. All the consumer should be concerned with is premium rate and reputation for claims handling. Independent agents do not necessarily inform you of your very best rate. Their payment incentives vary by insurance company, and you can be sure they will promote the companies that pay them the most.

Thank you for your insights. Very well stated.

 

[frank]

I have west bend insurance and thought I would shop around just to see what the difference would turn out to be, so after contacting 3 different companies. state farm, american family and farm bureau. I had a difference of 30 dollars one way or the other. seems like kind of a waste of time, but when you have doubts it is better to know than not know.

 

[rk911]

i've been covered by State Farm since I learned to drive (1965-66). My family's auto insurance was with SF and we continued with SF once I was on my own and married. SF also has and has been our homeowner's insurance and our liability umbrella for 30+ years. Our agent's office is always reachable and responds to calls or emails. A year or so ago we shopped around for the complete package just to see and after careful apples-to-apples comparison we stayed with SF. if it ain't broke, don't fix it.

 

[braumeister]

I just got my renewal from USAA and I checked the price. It is up 34% from when I got the car five years ago. I can certainly live with that.

 

[rk911]

went back and checked the premiums for our 2010 Jeep Liberty. Oldest premium record I can find is $568.92 (2012). Our 2023 renewal is $677.06, a $ difference of $108.14 or a 19% increase over 12-years or an average of 1.58% per year. I call that not unreasonable.

 

[Gearhead Jim]

Just called our auto insurance agency.

Traded in our 2011 Honda CR-V for a 2018 Lincoln MKX and expected a significant cost increase. Woman who took my call let me know the annual cost would go down [emoji50] because of all the safety features on the new vehicle!

Paid $697 for 2 cars, also have a 2003 Oldsmobile Aurora and the new annual premium will be $459 [emoji2148] and we will get $99 refund on the current policy and receive a rate lock on the renewal in August.

20+ years ago we were considering trading our almost-new Camaro for a new Corvette. When I asked our State Farm agent about insurance cost, he said our premiums would stay the same; the Corvette would cost more to fix or replace but the likelihood of actually having to fix or replace anything had gone down. And less likelihood of having to pay liability claims. He said something about Camaros with young guys with big gonads and small brains.

 

[Dtail]

20+ years ago we were considering trading our almost-new Camaro for a new Corvette. When I asked our State Farm agent about insurance cost, he said our premiums would stay the same; the Corvette would cost more to fix or replace but the likelihood of actually having to fix or replace anything had gone down. And less likelihood of having to pay liability claims. He said something about Camaros with young guys with big gonads and small brains.

Yeah plus many Corvettes are bought by middle aged guys, who don't take as many risks.