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Auto insurance companies return $800 million in premiums because no one is driving


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On 4/7/2020 at 3:16 PM, Burgerwars said:

21st Century/Farmers did send me an email today saying if you're having trouble paying your premiums on time, they'll not immediately cancel your coverage and they may be able to help, but nothing about reduced premiums.

 

Just got off the phone with 21st Century and confirmed they ARE GIVING A 25% DISCOUNT FOR APRIL. The rep said they will be sending out a notice on it soon. She said depending on when your premium is due the discount may end up on the May premium. 

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3 hours ago, zpcsc said:

Yeap I don't see it either! 

You must have missed my post earlier in this thread. Geico is actually doing the best discount I have seen so far. They are giving a 15% credit for the next full 6 month term of your policy when it next renews. So for example, mine renews on 4/23. It would be like $680 at full price, but I will be credited about $102, which brings it to $578 for my next 6 months. But I think people whose policies renew later on in the year will have to wait for their credit, which isn't necessarily helpful now, but I would prefer to take a bigger credit later than a smaller one right now.

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Progressive to credit approximately $1 billion in premium to customers

April 08, 2020

Today we announced that we’re providing credits of approximately $1 billion in premium to Progressive personal auto customers as a result of fewer claims that come with less frequent driving.

Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30th will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31st will be credited 20% of their May premiums in June.  We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months.

Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customer’s policy and those customers who have paid in full will receive a payment of the credited amounts. 

Edited by Why Chat
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On 4/10/2020 at 12:49 PM, IndyPoolPlayer said:

Just curious is Hagerty the actual underwriter or do they act as agent for non-mainstream insurers since what they insure doesn't fit into typical auto insurer templates?

Your question prompted me to look at the last renewal packet...at least for the two I have with them, they are listed as the Agent for Essentia Insurance Company.  Don't know much about the underlying entity other than their claims process rocked...when one of mine was hit, they had be send a few pictures and an estimate and then they sent me a check within just a few days.  Never had to meet with an adjuster...if only EVERY carrier could be that easily handled with claims. 

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50 minutes ago, centex said:

Your question prompted me to look at the last renewal packet...at least for the two I have with them, they are listed as the Agent for Essentia Insurance Company.  Don't know much about the underlying entity other than their claims process rocked...when one of mine was hit, they had be send a few pictures and an estimate and then they sent me a check within just a few days.  Never had to meet with an adjuster...if only EVERY carrier could be that easily handled with claims. 

Reviewing their website, it appears that Essentia underwrites all Hagerty auto and marine policies.

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19 hours ago, Why Chat said:

Progressive to credit approximately $1 billion in premium to customers

April 08, 2020

Today we announced that we’re providing credits of approximately $1 billion in premium to Progressive personal auto customers as a result of fewer claims that come with less frequent driving.

Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30th will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31st will be credited 20% of their May premiums in June.  We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months.

Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customer’s policy and those customers who have paid in full will receive a payment of the credited amounts. 

 

I wouldn't insure my Slap Chop with Progressive.

 

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2 hours ago, centex said:

Your question prompted me to look at the last renewal packet...at least for the two I have with them, they are listed as the Agent for Essentia Insurance Company.  Don't know much about the underlying entity other than their claims process rocked...when one of mine was hit, they had be send a few pictures and an estimate and then they sent me a check within just a few days.  Never had to meet with an adjuster...if only EVERY carrier could be that easily handled with claims. 

 

2 hours ago, hdporter said:

Reviewing their website, it appears that Essentia underwrites all Hagerty auto and marine policies.

https://www.hagerty.com/corporate/Hagerty-Disclosures/US-Auto

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On 4/11/2020 at 3:54 PM, RehabbingANDBlabbing said:

You must have missed my post earlier in this thread. Geico is actually doing the best discount I have seen so far. They are giving a 15% credit for the next full 6 month term of your policy when it next renews. So for example, mine renews on 4/23. It would be like $680 at full price, but I will be credited about $102, which brings it to $578 for my next 6 months. But I think people whose policies renew later on in the year will have to wait for their credit, which isn't necessarily helpful now, but I would prefer to take a bigger credit later than a smaller one right now.

I just renewed, I will call them and see what they can do. Thank you. 

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2 hours ago, zpcsc said:

I just renewed, I will call them and see what they can do. Thank you. 

 

On 4/11/2020 at 2:54 PM, RehabbingANDBlabbing said:

You must have missed my post earlier in this thread. Geico is actually doing the best discount I have seen so far. They are giving a 15% credit for the next full 6 month term of your policy when it next renews. So for example, mine renews on 4/23. It would be like $680 at full price, but I will be credited about $102, which brings it to $578 for my next 6 months. But I think people whose policies renew later on in the year will have to wait for their credit, which isn't necessarily helpful now, but I would prefer to take a bigger credit later than a smaller one right now.

Best discount isn't meaningful when the carrier leaves something to be desired though...shopping insurance based on who is giving the largest COVID-19 discounts is like shopping for a car and telling them you want the payments under a set amount.  AND...a larger rebate right now on insurance could ALSO be a possible indicator that they had room to have charged their customers a lower premium in the first place...

 

Just food for thought...

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15 hours ago, centex said:

 

Best discount isn't meaningful when the carrier leaves something to be desired though...shopping insurance based on who is giving the largest COVID-19 discounts is like shopping for a car and telling them you want the payments under a set amount.  AND...a larger rebate right now on insurance could ALSO be a possible indicator that they had room to have charged their customers a lower premium in the first place...

 

Just food for thought...

That's a good point. In my case, I have had Geico for about 4-5 years now. Before that I had Nationwide, who I switched from because their website never worked. Every 6 months, I comparison shop for insurance out of habit. For the past few years, Geico has remained the cheapest for me and my household, compared to all the others I checked. When I was a youngster (16-22), Gieco was not the cheapest. The cheapest way for me to get insurance at that time was being added onto the policy of one of my relatives, and even then, it was still pretty expensive.

 

I can tell you the ones that have always quoted me a super high premium: State Farm, Allstate, Esurance, and Progressive. State Farm was ALWAYS the most expensive every time I have checked, even now that I am older. And I am talking 3 to 4 times as much, not just a few dollars more. 

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1 hour ago, RehabbingANDBlabbing said:

I can tell you the ones that have always quoted me a super high premium: State Farm, Allstate, Esurance, and Progressive. State Farm was ALWAYS the most expensive every time I have checked, even now that I am older. And I am talking 3 to 4 times as much, not just a few dollars more. 

Same here. 

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3 hours ago, cv91915 said:

For anyone who shops insurance solely on price, would you get a facelift from the lowest bidder?

I think @IndyPoolPlayer makes a great point. When I had a car in high school, the insurance companies wanted me to pay $600 a month in premiums. I had never had any accidents at that time, but they still were being ridiculously greedy. That's more money than I made in one month working at McDonald's back then. Many years later, State Farm is still quoting me over $400 a month. And I am required to have it, so I am not about to pay them as much as a monthly car payment just to get insurance when Geico offers decent coverage for less than 33% of what they are charging. I am all for the "you get what you pay for" argument, but I think the credibility of that appeal dies once one insurance company is charging more than double what the other is.

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1 hour ago, centex said:

Going low cost is fine if you never have a need to file a claim.  There are far too many horror stories that exist regarding the low-cost companies.  If they are not going to be there when you need them, then all of the premiums paid are wasted...

Flo and the Gecko are slumming with The GENERAL in the back ally spending premiums on meth when you really need them.

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1 hour ago, centex said:

Going low cost is fine if you never have a need to file a claim.  There are far too many horror stories that exist regarding the low-cost companies.  If they are not going to be there when you need them, then all of the premiums paid are wasted...

 

Totally hit the nail on the head.

 

You want to price around, look at AM Best ratings, and cast a wide net on the web to discern perceptions re claims experience, retention policies after a claim, unprompted premium spikes, etc, ... and then make a decision, weighing all factors

 

Since Geico is referenced in the thread, I'll note that I've been with them since 2010 (when Progressive threw a 40% rate spike at me without specific cause).  And then, in my first year with Geico, I had my first at-fault accident in my life ($16k damage between the two vehicles).

 

What I'll relate is that the claims experience and repair were a breeze and top-notch work was done.  The subsequent premium hike was "tolerable", and put my premium competitive to those quoted by other insurers after the accident.  Generally speaking, I find Geico's phone support to be among the best of the insurers I've been with -- I always end a call with the sense that the rep took at least a modest interest in my well being.

 

If I defect from Geico at some future date, it will likely be to Amica ... they have an astounding rep.  But I'm sitting pretty right now (especially after quoting the move to Mass and finding that I'm going to see a HUGE premium savings!)

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46 minutes ago, hdporter said:

If I defect from Geico at some future date, it will likely be to Amica ... they have an astounding rep.  But I'm sitting pretty right now (especially after quoting the move to Mass and finding that I'm going to see a HUGE premium savings!)

In the summer I might switch to an insurance company I only recently discovered for that reason - Erie.

 

This year was my first claim ever (not the driver) and it was an expected nightmare with my current one. Erie has really high ratings and reasonable rates. I get this big Buick/senior citizen vibe from them, IDK why. But rates here are high anyway, and it looks like just a really quiet and reasonable company. 

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1 hour ago, centex said:

Going low cost is fine if you never have a need to file a claim.  There are far too many horror stories that exist regarding the low-cost companies.  If they are not going to be there when you need them, then all of the premiums paid are wasted...

Everything that happens after this is the entire product you are paying for.

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Over the years I've had State Farm, Farm Bureau, Allstate, Nationwide, Erie and Geico.

FWIW, I've shopped and held personal and business policies with all of the above except Geico.

Allstate was by far the worst on premiums and customer service and that was through a local agent I'd known for years.

State Farm I loved but they couldn't be anywhere near competitive rate wise when I moved states. 

Farm Bureau had outstanding customer service but they went through a huge rate jack one year and became unaffordable at the time.

Erie competitive rate wise but the customer service was abysmal. They also have no problems not renewing you if you file a claim. 

Nationwide was very good with customer service and fairly competitive rate wise. 

Geico was always rate competitive, usually the lowest even if not by a wide margin and excellent customer service. 

I had Progressive run some quotes for me before and they didn't impress me with their rates.

 

Geico for 30+ years with a few here and there away from them. Auto, motorcycle, boat, renters & homeowners at various times. Still with them, several claims over the years and all were a breeze. I will say the last claim was 15+ years ago. I rate shop every year and Geico still beats everyone else.

 

 

For business policies (GL, WC, Umbrella, Auto) a broker is the way to go for cheapest rates but if you have a claim, you'd better have a good broker.

Claims process with Nationwide was the smoothest, customer service was outstanding. 

Erie just plain sucked customer service wise. It might take a week to get a COI and I often had to walk them through it. Rates were good.

State Farm & Farm Bureau were easy to work with but not the best rates.

Allstate was cheapest on the auto and umbrella, second cheapest on GL and shafting us on the WC.

 

 

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when I did my annual comparison shop last year I stuck with Amica even though SF and Allstate were almost 20% lower. Some other companies were even "cheaper" on auto but none of the other giant companies or smaller firms came close on homeowners and umbrella.

 

 

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