For the first two years as a P&C Agent, I quoted myself for all of our standard/preferred companies (independent agency). I had one speeding ticket on my 3-year MVR (85 in a 65 zone) and no claims in the past 5-years. Both years, one particular company offered the best rate. I also felt obligated to buy insurance thru our agency or I would somehow be disloyal…
For full coverage on a 2006 Mazda3 s 5-door-
UI Motorist- 100/300/25
UI Deductible- $250
Comprehensive- $250 deductible
Collision- $500 deductible
Rental coverage- $30/day up to $900/max
My annual policy was $1042 the first year and $1085 the second year. My speeding ticket aged off of my 3-year MVR as of February 2010, so I was looking forward to lower premiums when I renewed at the end of March….but my renewal was $1148 per year! I contacted them and they verified that they hadn’t pulled a current MVR for me, so they did so. But with a clean MVR, the policy was still $1103 per year!? I asked them if that was the best they could do and they claimed that it was….
I quoted myself with the one company we represent that I trust and respect the most- Auto-Owners. The Comp and Collision for my Mazda were roughly double what I expected them to be; even though the Liability- BI and PD; and UI rates were very reasonable. The policy would still cost me about $1055 per year with same coverage as above. I was still a month away from my policy expiration, but I figured that Auto-Owners would be the company I’d go with instead of renewing with the company I had been with for two years.
I checked out Consumer Reports, JD Power and various other media sources that list the ‘top’ or ‘highest rated’ insurers. The one company that consistently stayed at the top of almost every list, year after year was AMICA. So I decided to see what they’d quote me, just for comparison sake. I got a one year policy with the same coverage as above, except they have $0 deductible for all UI claims (and they require use of OEM parts) for $965. At the end of the first policy term, I got a dividend check for $91, making the net cost of the policy $874! When I renewed in March, I decided to up to Collision deductible to $1,000 now that my car is paid off and six years old. My current policy is $781 with a projected dividend of $84, making the current year policy only $697!
Is anyone else cheating on their agency, so to speak? I actually felt like I was doing something wrong or dishonest initially. But the agency owner, Commercial Lines Manager and two CSRs at my agency are all AMICA customers now! =)
Total Comments: 9
Posted: Thu Jun 09, 2011 12:01 am Post Subject:
In California, AMICA comes in at $400 more than my Geico policy which has not changed premiums in four years, except for a change in vehicle (2010 Hyundai Son-ata in place of a 2002 Buick Park Avenue) that added about $100 per year last year.
Posted: Thu Jun 09, 2011 07:45 am Post Subject:
$400 is quite a lot to pay in addition....do we really need it!
Regarding the $100 increment....it seems it happened since the worth of 2010 Hyundai Son-ata is more than the worth of 2002 Buick Park Avenue...am I right!
Posted: Thu Jun 09, 2011 09:30 am Post Subject:
Posted: Thu Jun 09, 2011 09:31 am Post Subject:
Posted: Thu Jun 09, 2011 09:32 am Post Subject:
Posted: Thu Jun 09, 2011 09:34 am Post Subject:
Posted: Thu Jun 09, 2011 04:19 pm Post Subject:
Actually, most of the increase was due to the collision coverage -- smaller car, more prone to damage -- not so much the value of the vehicle itself (if the vehicle value had anything to do with the cost, my premiums should have gone down, not stayed the same). There was no change in the cost of BI/PD liability coverages (I carry high limits -- 250/500/50 -- as I recommend to clients).
Posted: Thu Jun 09, 2011 11:01 pm Post Subject: Not the cheapest for everyone
I understand that AMICA can't be the cheapest for everyone and I spent five years as a happy GEICO customer from 2000-early 2006. I had an at-fault accident that cost them $791 for the entire claim and I got a ticket for following too closely. I was paying about $700/year for liability only on a '92 Honda. It was totaled, so I bought a new 2006 Mazda3 and when I called GEICO I was stunned at the price- $1494 for six months for full coverage l even with $1000 comp and collision deductibles.
My best friend and I went on the GEICO website and entered his info (same age, similar credit scores, he had one speeding ticket on his record, same as me, and we were roomies at the time, so even the address was the same). They gave him a quote of $1035 for six months, which would indicate that my wreck caused them to raise my premium by $459 per six months. I had to find a cheaper carrier, even though I went with a high-risk company of questionable integrity...so glad those years are over!
Posted: Fri Jun 10, 2011 01:24 am Post Subject:
I called GEICO I was stunned at the price- $1494 for six months for full coverage l even with $1000 comp and collision deductibles.and
My best friend and I went on the GEICO website and entered his info (same age, similar credit scores, he had one speeding ticket on his record, same as me, and we were roomies at the time, so even the address was the same). They gave him a quote of $1035 for six months
A person's driving record is one of the most important determiners of risk to the insurance company. The past is used as a predictor (albeit imperfect) of the future.
The 14 years difference between old and new vehicles was also important. For a period of time in the 1980s and 1990s, any vehicle described as "turbo" meant at least a 15%-25% rate increase even for the best of drivers.