Auto insurance - the Truth

[Ski_Banker]

A big question that we've all thought about, and hopefully some of the insurance industry experts online can help shed some light on:

What is the value in being a long-time auto insurance customer? (As opposed to shopping around for the lowest price every year or so).



It would be expected that being a 5, 10, 15 year customer of an insurance company would mean that, when the time comes, the insurance company will go out of its way to make you happy after an accident. No hassles. Perfect repairs. Etc. Technically, however, one should expect exactly the same from even a new insurance provider.

So...what do you get by staying with one insurance company rather than shopping around every now and then??

 

[docjohn]

For me having a long time agent gives me another ear to bitch and moan to.Plus I have one simple call to make should a disaster happen.

 

[tosugrad]

Personally I don't think it makes a huge difference. I have been with State Farm for more than 20 years but I don't think they would do any more/less for me than if I switched to AllState tomorrow.

 

[chudson1549]

Personally I don't think it makes a huge difference. I have been with State Farm for more than 20 years but I don't think they would do any more/less for me than if I switched to AllState tomorrow.

Hear Hear. GEICO 10 years Had a bad year 3 accidents...Dropped!! I was considered a risk WTF

 

[ChopsJazz]

Personally I don't think it makes a huge difference. I have been with State Farm for more than 20 years but I don't think they would do any more/less for me than if I switched to AllState tomorrow.

Me too, over 20 years with State Farm and, after divorcing and going through some changes, they dropped me like a hot rock after I "missed" a payment because my ex canceled me.

I say, shop for the best price, there is no loyalty in business anymore.

 

[BD]

I was with Progressive. I had them since I lived in Seattle and they were great... Until I moved back to California - They raised my rate every year, with points or not. I switched to AAA at the recommendation of Jason/NSXSUPRA and I now saved over $1400 a year for the same coverage.

 

[transdzn]

Hear Hear. GEICO 10 years Had a bad year 3 accidents...Dropped!! I was considered a risk WTF

Can't blame them-- they gotta run a business :smile:

 

[georednsx]

Unfortunatly, the loyalty from insurance companies is nil. Since my NSX is for pleasure, I went with Hagerty, with a agreed value.

 

[Dtrigg]

I've been with USAA for years, and it's a mutual company. Consequently I receive a payment from them each year. They sent a letter a few weeks ago. I think I'll receive a check for a little over $900.00 this year.:biggrin:

 

[H-carWizKid]

Personally I don't think it makes a huge difference. I have been with State Farm for more than 20 years but I don't think they would do any more/less for me than if I switched to AllState tomorrow.

I agree. Doesn't mean a thing to them. I was with State Farm for 5 years, we got rear ended by a drunk driver in a stolen car last year (the 3rd time I had been rear ended in the 5 years, this was the only time they had to pay a claim) and they wanted to drop me due to high risk- I switched to Geico and saved money.

I had life policies for my wife, and myself, renters insurance and my car coverage through my State Farm agent- didn't matter at all to them apparently.

P

 

[NSXrunner]

For most you are just a number in a file. Nothing more.

 

[alum04org]

A big question that we've all thought about, and hopefully some of the insurance industry experts online can help shed some light on:

What is the value in being a long-time auto insurance customer? (As opposed to shopping around for the lowest price every year or so).



It would be expected that being a 5, 10, 15 year customer of an insurance company would mean that, when the time comes, the insurance company will go out of its way to make you happy after an accident. No hassles. Perfect repairs. Etc. Technically, however, one should expect exactly the same from even a new insurance provider.

So...what do you get by staying with one insurance company rather than shopping around every now and then??

By no means am I an expert, but I do have one thought. As you get a bit older (not in the "risky" 18-to let's say 35 year old range) and have been with the same carrier for some time with no claims/significant change(s) in your policy (for example, no youthful drivers added), the carriers tend to not run your driving record as much.
Hence, if you catch a high speed driving award or other moving violation(s), they may not discover it and then, of course, jack your premium(s). Any time you shop for a new quote, of course the carrier checks your driving record.

 

[fkong777]

They is no benefit to stay at the same insurance company. If you get better price with the same coverage, do it. Just remember you are paying for something that you never plan to use. Just make sure the policy has the coverage you need. Insurance company will not pay for anything more other than what is covered.

Make sure there isnt a line that state you must use their approved repair shops. That will greatly reduce the choices to where you can bring your car to be fixed.

 

[Ski_Banker]

Great posts...keep 'em coming! Particularly if you have, uh, inside information. :wink:

 

[DrVolkl]

For most you are just a number in a file. Nothing more.

Insurance companies are evil.

They're your best friend until you need them to pay up for something.

Then see how much your loyalty means.

F-em imo. Shop around and get the best price as often as you can...otherwise you're a sucker as they'll slowly raise your rates.

 

[fkong777]

The only time you will benefit to stay with the same company is when you have tickets after you started your policy. Insurance company do not usually automatically raise your rates. They only raise your rate after a at fault accident or if they randomly pull your driving record. Pulling driving record cost them money so they dont do that every year you renewal.

If your record is clean. Shop for the best rate.

 

[john@johnhudakracing]

What is the value in being a long-time auto insurance customer?

You become more equatable, and make them more money.

 

[Sportsrod]

Premiums are also directly related to your credit rating score, as well as car type, age, county of residence, claims history, driving record.

 

[Sarge]

The Truth is all insurance is Theft.

 

[Hrant]

Frustrations with insurance companies is obvious. Nevertheless, price is not everything. How they resolve a claim is equally important. Yes you may get the cheapest rate, but if it takes them a week to send an adjuster and then haggle with your preferred shop for another week what to cover and not cover and how much they will pay for parts, you haven't actually saved. Service does come with some premium. YMMV.

Comparing premiums can be tricky if one doesn't take into account the law changes in California that reduced premiums by about 10-20% in the last 2 years.