How do you feel about your Auto Company?

Posted: Thu Nov 06, 2008 11:26 am Post Subject:

They are all solid company's...more than likely your 'minor accident' paid out more than you thought, and that's why the cost rise.

Posted: Thu Nov 06, 2008 11:27 am Post Subject:

Well zhbuyi, I don't disagree that the actual quote may differ to some extent form the online quotes. The underwriters may include various other factors while deciding the rate for the policy holder. However, 60% increase in the rate in way too much.

The customer is always free to compare the rates from the different companies, in fact that's the right way to shop for insurance. If you can get better rate without compromising in terms of benefits IMO you shouldn't lose the opportunity.

Thanks,
Rupert

Posted: Thu Nov 06, 2008 11:40 am Post Subject:

Were there too many claims on your record? I doubt that a minor accident can actually increase the rate so much. However, both, Progressive and Allstate have their own bunch of loyal customers, but I would rather suggest that you get the recommendations from the friends and families and also check the claim payment record of the insurance companies in your area before deciding in favor of one.

I've heard nice feedback about both StateFarm and Nationwide. You might wish to check their service as well.

Best of luck for the hunt!!

Posted: Thu Nov 06, 2008 10:37 pm Post Subject:

zhbuyi, great questions! Let me see if I can shed some light on your dilemma...

Commonly, the quote that you receive online will differ by a substantial amount compared to what a "live" insurance agent will quote. The primary reason is that the agent has to be paid a commission whereas no commissions are paid for the policies purchased online.

That, however, does not explain the tremendous difference of 60%. What could be the reason for such a huge difference? Commonly, the typical difference between online and "live" purchase is around 15% or so, certainly not 60%!

My feeling is that the difference is more than likely attributable to a couple of things:
1. Credit score, or more accurately, your "insurance score." When an agent quotes your rate, their computer system will normally screen your insurance score prior to actually quoting the price. That score can have a HUGE difference in your rate. Those with good insurance scores, coupled with good driving records and other factors will get you the best rates. Most (not all) online generated rates use an insurance score generally thought of as "average." Think middle of the pack. There are some carriers that will run your insurance score online, but certainly not all.

2. That accident you had? You didn't tell us whether it was or was not your fault. If you considered it "not at fault" in the online rating system, chances are you were not surcharged for that accident in the quote. If there is additional activity that was not disclosed online, such as other accidents or tickets, the online premium rate would obviously not take this activity into account. When the agent quoted you, he saw a couple of things (more than likely). he saw your "Choicepoint" report, which contains data on losses for insureds (Also known as a "clue" report). This report will detail whether the accident was at fault or not at fault depending on how it was coded within Choicepoint and the carrier that paid for the loss. You may have thought it was not your fault, but if CLUE/Choicepoint have it coded as at fault, you will be surcharged for the wreck. As well, there's the strong possibility that if the accident was indeed your fault, it took you out of a preferred risk category and placed you into a standard risk category for rating purposes. :cry:

The combination of the factors shown above could easily result in that kind of a rate discrepancy. You need to talk to the agent that quoted you to find out if this is actually the case.

There may be more to this than what I have posted. If there's any other information that could allow us to help you, please let us know!

InsTeacher 8)

Posted: Fri Nov 07, 2008 12:51 am Post Subject:

So if you go online and purchase a policy isn't there alot of downfalls of not having an agent? I think of how many times I have called my agent with questions and got quick on the spot answers.
How would you go about reporting claims and stuff then..directly through the company? That may not be a hard thing to do but what about when your not quote sure whether to report a claim? Sometimes an agent can give better advice on handling matters like helping to decide if something is worth submitting a claim. I'm not so sure not having an agent is a good idea. What are your thoughts (anyone)?

Posted: Fri Nov 07, 2008 04:33 am Post Subject:

Have you checked with 21st Century? I have several vehicles with them for over 5 years and have not yet had a bad experience.

Posted: Fri Nov 07, 2008 10:53 am Post Subject:

I personally haven't checked but will. Do they offer quotes over the internet? If they do are they pretty close to the actual amount a person would pay. My driving record is really good and so is the hubby's. If I can save on the few bucks on each of my vehicles that would be great.

Posted: Fri Nov 07, 2008 12:07 pm Post Subject: To InsInvestigator

"Have you checked with 21st Century? I have several vehicles with them for over 5 years and have not yet had a bad experience."

Few of the drivers would not have bad experience until they need to answer big claims. If you are a good driver and lucky, your insurance company probably would not be tested.

Posted: Fri Nov 07, 2008 05:30 pm Post Subject:

OOPS! I guess I should have given just a bit more information.

Have you checked with 21st Century? I have several vehicles with them for over 5 years and have not yet had a bad experience.