Insurance reminder

[dgs49]

Just a personal situation that may be instructive to others.

I began using Liberty Mutual for my auto insurance many years ago when they struck a deal with my employer (U.S. Filter Corporation - which no longer exists) to pay premiums through monthly payroll deductions. The rate was competitive and I didn't like sending out a big check once a year, so I did it.

Later, I added my homeowners, motorcycle insurance, and a personal liablity policy, though that was after I left USFilter.

They have given us good service over the years. We have had a few minor claims, and I change vehicles frequently, but they have always been quick and efficient with everything we wanted to do.

A couple weeks ago I opened the bill for my car insurance, and was stunned by how much we are paying. We are two old bastards with perfect driving records, and own a 2013 CR-V, a 2006 PT Cruiser, and a 2004 Nissan 350Z roadster (which is stored for 6 months a year). We are paying $3,800 a year. It seemed like a lot to me.

So I looked in my church bulletin and saw a business card ad from a local agent for another company (I won't name it), and after making a contact with an agent, I sent him a copy of my policy and asked for a quote for the exact same coverage.

$1,800! I double checked the coverage and it was the same.

I sent him my policies for homeowners, the motorcycle, and the personal liability, and if (when) we switch to his company for all of them we will save $3,000 per year for exactly the same coverage. And the company is not fly-by-night. He also INCREASED the coverage for replacement of my home, and showed me how I can save an additional $300 by eliminating the collision coverage on the Z-car while it's in storage.

I have been with Liberty Mutual since 1998, and I NEVER compared their rates, assuming that I was getting competitive rates. In fact, they STILL send me a letter a couple times a year pointing out that I'm getting big discounts for being an employee of U.S. Filter. Did I mention they don't exist any more?

What a dummkopf!

[Scooter]

When my insurance premiums started increasing at double digit rates a couple of years ago, I started shopping around for a better deal after being the same insurer for 17 years. In my case my broker found that I was in fact getting the best deal I could, but I was amazed at how much variation there was in the rates. Some companies were quoting as much as 50% more than I was paying. The market operates so inefficiently I don't understand how it doesn't implode.

[Long Run]

I think Scooter hit on the key -- having a broker help find the best deal. If you have a good broker, he/she will look out for you and keep your rates competitive.

[rubato]

I comparison-shopped when we first got combined homeowners/car insurance and then again after we moved back to Calif. Could be time to check again.

We have high deductables, $1,000 each on the cars and $10,000 on the homeowners and an umbrellla which increases liability coverage to $1M but we are close to $3k total. Having a company who will actually pay if there is a claim, is an issue. Cutting our bill to $2,000 for what would be -0- coverage in fact, would not be much of a deal.


yrs,
rubato

[dgs49]

My father was an insurance broker while I was growing up and I thought I had a fairly good understanding of the process.

It is very difficult to understand how two insurance companies can look at the same risk profile (cars, drivers, geographical area, etc) and come up with rates that are so different. It makes me wonder if they price everyone the same way, or if they take advantage of some people due to other factors.

[MajGenl.Meade]

Part of the process dgs is that companies rate according to what they DON'T want to insure. At a given time, they might want less auto and more home or vice versa. So the premiums are changed to attract the kind of business that they want. Also, it's true that many times the person seeking the cheapest deal is not the demographic that's desirable. There's a lot that goes into ratings. In auto, the worst risks are stupid young people (which basically means anyone under 25) and stupid old people (basically anyone over 65) - those oldsters really start to hit other cars in parking lots. A lot.

[Big RR]

Also, it's true that many times the person seeking the cheapest deal is not the demographic that's desirable.

that's basically true, most companies would prefer a "demographic" that's willing to pay more over a demographic that insists on the best or cheapest price. But it's hardly a valid rating

[Guinevere]

You do definitely have to balance the ability and willingness to process claims with the cost of tr coverage. If the insurer isn't going to pay reasonable claims, or is going to fight them, your policy is worthless regardless of cost.

[rubato]

You do definitely have to balance the ability and willingness to process claims with the cost of tr coverage. If the insurer isn't going to pay reasonable claims, or is going to fight them, your policy is worthless regardless of cost.

And not all states regulate insurance with sufficient vigor to keep out the thieves.


yrs,
rubato

[MajGenl.Meade]

Same thing applies to er.... lawyers

[rubato]

Same thing applies to er.... lawyers

Are there any examples of states which regulate the legal profession adequately?


yrs,
rubato

[dgs49]

State Bar Associations self-regulate, but I don't think fees are one of the things that is regulated.

I've gone with Allstate. Gave them the checks last night. The total actual savings will be more than $3 thousand/yr.

In my limited experience, any reputable company will be good to their own insured. The difficulties come (sometimes) when the other person is at fault, and you are dealing with their insurer.

Thanks to O'Care, our out-of-pocket deductible for health insurance this year will be $4 thousand, of which I have already taken a large bite with a trip to the ER a few weeks ago. To quote Rosanne Rosanadanna, "It's always something."