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Williamsmith
3-25-16, 8:12pm
Recently, I received my car insurance policy declaration and Bill. The premium increased over 15% over last years premium. No accidents, no claims, no nothing different. So I wanted to know what gives.

I called into the office and spoke with one of the representatives. Just why was my premium going up? Well, it seems that because gasoline is so cheap, people are driving more miles. And guess what? The more miles they drive the more accidents they get in. So apparently, the CEO claims this is cutting into their profit margin so they raised the rates.

I was a little bit unsure how that should be affecting my premium. I mean, I have a vehicle that is almost two years old and I haven't passed the 10,000 mile mark. And my other vehicle is only being driven a slight bit more.

Well, they offered to hook up a device that monitors my driving....and if I drove less than 80 miles per hour, stayed off the roads at night and took it easy on the brakes....I might get a discount. When I calmed down, I not so politely declined and asked them what they thought they could teach a retired State Trooper about driver safety.

So I shopped around and got a premium that was one third less for the exact same coverage.

The old company......Allstate. The new......Travelers.

I have learned since that there is a class action lawsuit against Allstate for price optimization. It seems they collect all kinds of information about you designed to predict just how much of a price increase you will tolerate before terminating. It has nothing to do with what is a fair market value. It's all a bet that loyal customers will just keep going with the flow even if it means unreasonable pricing.

It should be called profit maximization and it should be illegal.

freshstart
3-25-16, 8:24pm
that should def be illegal

I called Progressive to say I drive less than 20 miles a week, could I get a discount? Sure, $13. Per month? No, per year. Can they spare it?

I've been in the risk pool for two accidents, I get out this summer and Amica said they would take me back if my record is clean. I can't wait.

Williamsmith
3-25-16, 8:33pm
that should def be illegal

I called Progressive to say I drive less than 20 miles a week, could I get a discount? Sure, $13. Per month? No, per year. Can they spare it?

I've been in the risk pool for two accidents, I get out this summer and Amica said they would take me back if my record is clean. I can't wait.

Want to hear another funny one. They will give you a 10% loyalty discount after they raise your rate 25%. You are in good hands. HaHa

oldhat
3-26-16, 7:00am
There's plenty of competition in the auto insurance business so there's no reason to put up with being overcharged. I think they mostly count on the power of inertia--lots of folks don't write monthly checks any more and thus don't notice the cost as much.

One thing that's curious to me. Geico advertises incessantly, yet on two occasions when I called them for a quote (this was some years ago) they weren't even in the ball park of what I was already paying. I guess they need to charge high rates to pay for all that advertising.

Williamsmith
3-26-16, 8:10am
Some will point out, in my case, the free market worked exactly as it was supposed to. I didn't like the price, I looked elsewhere, competition provided a more affordable solution. However, I don't expect my "loyalty", the fact that I have been with Allstate for more than three decades, the fact that I have multiple policies....life and home owners, to indicate to them that my tolerance for increases was high. I wonder how long I have been paying increased premiums based solely on my loyalty rather than actual risk factors that changed. I guess they got a lot too greedy this time. I can see where the CEO is really having to tighten his belt.....with a salary and compensation package of between 10 and 20 million.....how is a guy suppose to raise a family?

SteveinMN
3-26-16, 1:01pm
I do not believe I've ever had my auto insurance bill go down -- unless I removed coverage. This despite a claim-free record for years and a car that just gets older. It's. A. Scam.

For the sake of simplicity (and group discounts and whatever clout it can manage) all our insurance (save medical and life) is with the same company. When I dropped my business coverage last month, I called American Family and told them I wasn't putting work miles on the car -- and I was only putting about 7-9,000 miles a year on the car with work -- so I wanted their "retired-driver" discount. Like freshstart, I was told it would save me a whopping $50 a year Gee, thanks.

I did it anyway. But one of my goals this year is to shop around our insurance. Our agent has been really good, but I think pretty much all the office agents are good; it's the companies themselves that claim to tie the agents down, and that's what I think I have to change. Besides, the come-on rate we get from whoever we end up with will creep up semi-annually until it's time to shop around insurance again. I sure can think of better things to do with my time...

ToomuchStuff
3-26-16, 2:07pm
Some will point out, in my case, the free market worked exactly as it was supposed to. I didn't like the price, I looked elsewhere, competition provided a more affordable solution. However, I don't expect my "loyalty", the fact that I have been with Allstate for more than three decades, the fact that I have multiple policies....life and home owners, to indicate to them that my tolerance for increases was high. I wonder how long I have been paying increased premiums based solely on my loyalty rather than actual risk factors that changed. I guess they got a lot too greedy this time. I can see where the CEO is really having to tighten his belt.....with a salary and compensation package of between 10 and 20 million.....how is a guy suppose to raise a family?

They are not the only ones. Using cable companies as an example, they offer, "introductory rates for new customers", yet do nothing for their existing customers. Why, because the businesses have to grow. (have to exceed the fallout rate from those that say heck with you when the offer is expired and go elsewhere). I wish someone had taken the time to show what their costs would be if they changed companies every year, verses what their rates would be if they kept the same coverage. I expect there would be some savings if we were as screwy as them. If enough did it, then MAYBE they would actually reward customer loyalty.
I'd love to see this across industries.

Rogar
3-26-16, 2:32pm
I could complain about my insurance costs, too. I've had State Farm for as long as I can remember and get some sort of discount for having my auto and home owners together, as well as something for being a long time policy holder. My close relatives have also had State Farm and never had any problems. I haven't had any auto claims, but have had hail damage that required a new roof, a home break in with some theft and door damage, and a stolen bicycle. I've never had any trouble with claims, an no big rate increases after a claim. I'd like to shop around for cheaper insurance, but have heard stories of poor customer service, canceled policies, and other problems with different insurance companies. I have no idea which is the best, but am not certain it's the ones with the cheapest policies?

Williamsmith
3-26-16, 3:02pm
They are not the only ones. Using cable companies as an example, they offer, "introductory rates for new customers", yet do nothing for their existing customers. Why, because the businesses have to grow. (have to exceed the fallout rate from those that say heck with you when the offer is expired and go elsewhere). I wish someone had taken the time to show what their costs would be if they changed companies every year, verses what their rates would be if they kept the same coverage. I expect there would be some savings if we were as screwy as them. If enough did it, then MAYBE they would actually reward customer loyalty.
I'd love to see this across industries.

Where I live, I have no choice in cable companies. They have territories. I can use satellite but I detest any contracts or supposed rental of equipment when I could buy the equipment for six months of rental fees. Well I actually can't buy the equipment because they are proprietary and aren't for sale. So no wonder politicians like The Bern are popular.

Lainey
3-26-16, 4:55pm
I could complain about my insurance costs, too. I've had State Farm for as long as I can remember and get some sort of discount for having my auto and home owners together, as well as something for being a long time policy holder. My close relatives have also had State Farm and never had any problems. I haven't had any auto claims, but have had hail damage that required a new roof, a home break in with some theft and door damage, and a stolen bicycle. I've never had any trouble with claims, an no big rate increases after a claim. I'd like to shop around for cheaper insurance, but have heard stories of poor customer service, canceled policies, and other problems with different insurance companies. I have no idea which is the best, but am not certain it's the ones with the cheapest policies?

I've also had State Farm for many years and had multiple auto claims years ago thanks to my then-teen son, but all were paid.
Also a co-worker's family member was a manger of the repair shop at a big auto dealer and also endorsed State Farm as the company who typically gave them no problems in paying for claims. For this reason I'm sticking with State Farm for now.

mschrisgo2
3-26-16, 6:32pm
My daughter was with State Farm for 10 years. For her 10yr year anniversary, they sent her a special congratulations card-- and a 25% increase!! She has never had an accident/claim.

She shopped and got car insurance and homeowners with better coverage for 65% less than her new bill. (highly reputable company) It is a racket, I tell you, a racket!!!

goldensmom
3-26-16, 7:48pm
Our car insurance goes up every year as our vehicles get older. Last year our insurance company (Farm Bureau) started using insurance scores to determine premiums. I asked how I can get my insurance score higher and was told that I do not have enough credit and to open a revolving account, buy furniture or appliances on credit and that people like us who pay cash and have no debt are more likely to have a claim although we've never had a claim. Complaining and trying to make sense out of the insurance score thing did nothing to improve the situation so I quit trying to understand or complain and now just pay the premium. I did shop around last year and found nothing cheaper.

Sonora Shepherd
3-27-16, 11:01pm
It is worth checking into the Hartford. They are through AARP although you don't have to belong to AARP. We drive a 2013 VW Jetta and our rates went down $200 this year and our coverage did not change.

Williamsmith
3-28-16, 1:55am
I got my safe driving bonus check in the mail today......$28.60. They always send out the check just prior to the premium being due. Cashed that sucker before the cancellation went through. Small victories.

pony mom
3-28-16, 11:02pm
Funny how this topic comes up today. I received my premium rate in the mail this afternoon and my insurance actually went down from $667 to $479---almost $200 less!!! The past few years it was increasing and I'm thinking, why? My car is getting older and I dropped collision (2003 Subaru Forester) a few years ago. My use info stayed the same but my mileage probably decreased last year.

My company is NJ Manufacturers, which was only available to employees of certain businesses. My parents have homeowners and car insurance with them now, but started with their subsidiary company until accepted into the main company. You receive a dividend around holiday time, which I usually deposit to pay for my premium. I save a set amount monthly so I can pay it off in one shot.

Now I have some extra money. OOPS, don't say that too loud or my car will hear me.

SteveinMN
3-29-16, 9:06am
I will amend my earlier comment about ever-increasing premiums by noting that when I moved from an apartment in a nice(r) neighborhood to where I live now, my insurance did go down. Even though this neighborhood is not as nice, this house came with a garage, and apparently that made the difference. Since then, however, it's all been uphill.

Williamsmith
3-29-16, 9:23am
Next step.....shopping around for a cheaper term life insurance.

Float On
3-29-16, 10:44am
I could complain about my insurance costs, too. I've had State Farm for as long as I can remember and get some sort of discount for having my auto and home owners together, as well as something for being a long time policy holder. My close relatives have also had State Farm and never had any problems. I haven't had any auto claims, but have had hail damage that required a new roof, a home break in with some theft and door damage, and a stolen bicycle. I've never had any trouble with claims, an no big rate increases after a claim. I'd like to shop around for cheaper insurance, but have heard stories of poor customer service, canceled policies, and other problems with different insurance companies. I have no idea which is the best, but am not certain it's the ones with the cheapest policies?

This is why I've stayed with State Farm since before birth as well. Even though my uncle sold American Family, my parents wouldn't give up their State Farm Agent and I stuck with them as well. The few claims we've had, our agent hand delivers a check to us the same day it's available even though we are 20+ miles away (there are 3 closer agents but we liked the one we had). My son totaling my truck did not increase our rates even though he was a new driver, a male, 16, and it was his fault. When I was hit by an uninsured driver, they collected $20 a week from her for 5 years and paid me faithfully. They are good about letting me pick where I want repairs. They come to me anytime something needs signed.

Williamsmith
3-29-16, 1:01pm
This is why I've stayed with State Farm since before birth as well. Even though my uncle sold American Family, my parents wouldn't give up their State Farm Agent and I stuck with them as well. The few claims we've had, our agent hand delivers a check to us the same day it's available even though we are 20+ miles away (there are 3 closer agents but we liked the one we had). My son totaling my truck did not increase our rates even though he was a new driver, a male, 16, and it was his fault. When I was hit by an uninsured driver, they collected $20 a week from her for 5 years and paid me faithfully. They are good about letting me pick where I want repairs. They come to me anytime something needs signed.

You aren't baking cookies or feeding them pies every time they visit are you? That kind of service usually requires tipping.

ToomuchStuff
3-29-16, 1:30pm
You aren't baking cookies or feeding them pies every time they visit are you? That kind of service usually requires tipping.

Or because you have become friends over time.

Tammy
3-29-16, 2:30pm
Back in the 80s we bought all of our insurance through s long time friend who lived in our little town.

In 1988 I entered the hospital just after midnight, gave birth at 8am, and went home at noon. I felt good and after having the first two at home with a midwife my doctor was satisfied that I had at least chosen the hospital for the third one.

Then we get the whole bill. Cause I was only there 11 hrs and some minutes. Because anything less than 12 hours is not considered inpatient.

We argued. Our friend argued for us. We lost. We paid the whole bill.

In 1996 I was hit by a car that ran a stop sign on icy roads. Everybody including the other driver agreed it was not my fault. We had our car insured through a different friend at the time, but In our small town and again a good friend with whom we socialized. Again our friend could exert no influence on our behalf. We finally won after an 18 month lawsuit, via another friend who was our attorney. But our credit suffered as we refused to continue making payments on a leased vehicle that was totaled. In truth, we couldn't afford to keep making payments at that point as we had to pay for the car that replaced it.

I'm telling those stories as a warning - just cause you know your insurance agent really well doesn't mean it will get you anywhere.

Williamsmith
4-3-16, 8:02am
Well, I had to laugh at the lady who called me from the agent office. Wanted to know what she could do to keep my business after they received my auto insurance cancellation notice. She said that she was surprised because I had been with them since 2007. I laughed again. I said I've been with you since at least 1983!

Oh.......so why are you changing? Just a little matter of a 15% increase and I went on. Well, she guessed Allstate should have spread my premium increase out over a longer period so I wouldn't notice so much. Again more laughter on my part.

So Friday I got an email....from Allstate. It seems my home owners is due and what do you know.....my premium went up 22% ! No claims and I have had the policy less than a full year. I guess the computer didn't get my cancellation notice yet.

what a joke.

catherine
4-3-16, 8:07am
I have learned since that there is a class action lawsuit against Allstate for price optimization. It seems they collect all kinds of information about you designed to predict just how much of a price increase you will tolerate before terminating. It has nothing to do with what is a fair market value.

Welcome to the world of marketing, and if you think it's bad for a car insurance company to do that, think about pharmaceutical companies testing price sensitivity in the hundreds of thousands of dollars for extremely expensive life-saving drugs. "So, Mrs. Jones, would you rather keep your house, or have your husband live for 4 extra months?"

iris lilies
4-3-16, 11:08am
Our auto insurance went down a few years ago, age related. Was it age 55? Seems right.

Am not sure that we ever had a claim with this company in 25 years. We keep our deductible amount high, so when the car cloutings take place, we replace the windshield ourselves. Also anteannae vandalism was popular decDes ago and we lost one or two, but didnt replace them

now, the latest car crime in the 'hood is stealing all 4 tires on a car that's sitting out on the street. The perps know how to do it very quickly. Police here are urging everyone who has a garage or car port to use them.