Car insurance woes

[retired]

I'm looking for some feedback on anyone's experience with Progressive Insurance for automobiles. We are about to renew our auto policy with Allstate (whom we have been with for over 30 years). We are retired with 2 cars, a new 2024 and a 2014. With full coverage on the 2024 and just liability on the 2014, the six-month premium is $1,125.90. That's a little more than my homeowners for a full year. I got an online quote from Progressive of $240 for the same coverage. It seems too good to be true. My Allstate agent said Progressive will likely increase the rate in the next couple years, and the $240 is a teaser rate to get me onboard with them. Has anyone used Progressive? Have they increased their rates like that?

[sluggo]

With my seniors discount through progressive I pay less than 400 a year for my new 2024 chevy for full coverage and 300 for my harley , cant beet it . been with them now for about five years .

[dpg]

I'm no expert but I do agree that sounds way too cheap in comparsion. Personally I do not mess around with any of the "cut rate" or mostly on-line services. I have Liberty Mutual and their no bargain either.

[Descant]

Don't lose the multi-policy discount by changing only one policy. Many companies want to have your auto policy as the underlying coverage for your umbrella, so you need to find out that price too. Some won't write the umbrella without carrying the underlying liability policy. If you're eligible, call USAA. If you go to a Liberty Mutual local office, they give multi-policy discounts even if you have different carriers, as long as you buy it through them. You can't just buy auto insurance any more and be done.

[P-3 Guy]

Originally Posted by Descant

If you're eligible, call USAA.

I had USAA for 35 years, until a few years ago. Five insurance policies (home, renters, auto, life, valuable personal property), multiple homes and cars. Plus I had other financial products with USAA: bank accounts, credit cards, auto loans, investment accounts. Never had a property insurance claim and decades without an at-fault auto claim. They used to be special for military officers. Great prices and outstanding service. No longer. Their policy premiums are average at best, and their customer service went way down hill. They have outsourced lots of their customer service functions, they sold their investment business, they no longer offer what used to be a great car buying service. In 2022, USAA lost money for the first time in 100 years. Employee morale is in the dumps. Claims adjusters are walking out the door and those that are left are swamped with claims. Fortunately, the CEO who oversaw much of this decline (the first CEO in company history with zero military experience) recently announced his retirement (encouraged by the BOD?).

I have moved my insurance to Amica (prices a bit better, customer service is far better), investments to Fidelity and Vanguard and banking to a local bank where I can walk in a nearby branch, talk face-to-face with the branch manager and easily resolve any issue. USAA has fallen far and fast, which has been very sad to see based on how the company was held in such high regard in the commissioned ranks when I started doing business with them in 1987. I realize I am only one data point, but there's a lot of anecdotal testimony available on the web from others who, like me, had a long relationship with the company that was terminated. So, as always, YMMV.

[FlyingScot]

Progressive's business model is using advanced analytics to give lower rates to less risky drivers. If this is you, you're probably better off with them. On the teaser rate--maybe it is, but you can switch again after pocketing the savings

[ishoot308]

Originally Posted by retired

I'm looking for some feedback on anyone's experience with Progressive Insurance for automobiles. We are about to renew our auto policy with Allstate (whom we have been with for over 30 years). We are retired with 2 cars, a new 2024 and a 2014. With full coverage on the 2024 and just liability on the 2014, the six-month premium is $1,125.90. That's a little more than my homeowners for a full year. I got an online quote from Progressive of $240 for the same coverage. It seems too good to be true. My Allstate agent said Progressive will likely increase the rate in the next couple years, and the $240 is a teaser rate to get me onboard with them. Has anyone used Progressive? Have they increased their rates like that?

Well I don’t have them for auto, but I do have them for three boats and I have had two claims thus far…The rate has never gone up even with the claims. One claim alone was $15,000.00 the other dam close to that…

I personally find them to be excellent!

Dan

[camp guy]

Insurance, of any type, is too complicated for me to try and figure out the best deal, that is why I rely on my local agent. Also, in case I ever needed the coverage provided by a policy, I don't want to deal with the "1-800-..." crowd. I want to be able to walk into my agent's local office and get face-to-face help. For me, insurance is a staple of home ownership, and I want to know my agent, know where the Office is, and trust my agent to help me if the need arises, and I don't think "1-800- ..." provides that. However, there are those who understand the insurance game and are probably able to navigate the ins and outs successfully. I guess my punch line is, "Money isn't the only factor when deciding on insurance coverage".

[thinkxingu]

Originally Posted by camp guy

Insurance, of any type, is too complicated for me to try and figure out the best deal, that is why I rely on my local agent. Also, in case I ever needed the coverage provided by a policy, I don't want to deal with the "1-800-..." crowd. I want to be able to walk into my agent's local office and get face-to-face help. For me, insurance is a staple of home ownership, and I want to know my agent, know where the Office is, and trust my agent to help me if the need arises, and I don't think "1-800- ..." provides that. However, there are those who understand the insurance game and are probably able to navigate the ins and outs successfully. I guess my punch line is, "Money isn't the only factor when deciding on insurance coverage".

Agree 100%, and I think there are many benefits people overlook when going as cheap as possible.

For example, my insurance agent is able to keep payouts under a certain amount "in-house," which is faster and does not hit our insurance. This, combined with his local outreach for business partners, is a game-changer.

A couple years ago, some decking boards slid from my trailer into the back of my 4Runner. My insurance agent called the local body shop and worked out a deal to have the work covered for the amount he could pay in-house, which saved me my deductible and a lot of time.

Sometimes saving money costs money (or frustration or time or...) in the long-run.

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[retired]

I agree that I also like the personal touch when dealing with insurance. But at what cost? Why pay 2 or 3 times the amount for the same product? We need to be good consumers in order for honest competition to keep costs down for all of us. It seems the insurance companies want us to 'bundle' in order to discourage us from competitively shopping. It is more work for us to shop for two or three policies than for one.

[thinkxingu]

Originally Posted by retired

I agree that I also like the personal touch when dealing with insurance. But at what cost? Why pay 2 or 3 times the amount for the same product? We need to be good consumers in order for honest competition to keep costs down for all of us. It seems the insurance companies want us to 'bundle' in order to discourage us from competitively shopping. It is more work for us to shop for two or three policies than for one.

Because the likelihood that it's the same product that far off in pricing is close to zero. If that was the case, everyone would be with them, right?

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[retired]

Perhaps. I plan to switch this week. Will let you know how the coverage and price work out.

[thinkxingu]

Originally Posted by retired

Perhaps. I plan to switch this week. Will let you know how the coverage and price work out.

The problem, of course, is you really won't know the outcome until you need to file a claim. Given others' positive experiences here, though, it may prove worthwhile.

Good luck!

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[tis]

Originally Posted by retired

I agree that I also like the personal touch when dealing with insurance. But at what cost? Why pay 2 or 3 times the amount for the same product? We need to be good consumers in order for honest competition to keep costs down for all of us. It seems the insurance companies want us to 'bundle' in order to discourage us from competitively shopping. It is more work for us to shop for two or three policies than for one.

I've said it before and I'll say it again. I wish you could get everything covered in one policy like a business. I have a lot of policies and it seems I am always dealing with insurance, all year long.

[thinkxingu]

Originally Posted by tis

I've said it before and I'll say it again. I wish you could get everything covered in one policy like a business. I have a lot of policies and it seems I am always dealing with insurance, all year long.

What do you have that can't be covered under one policy?

We have two cars; our boat; our home; at one point, two jet skis; some individual riders for specific items; and a $1M umbrella policy all in one policy (~$3k total per year, by the way) with State Farm.

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[tis]

Originally Posted by thinkxingu

What do you have that can't be covered under one policy?

We have two cars; our boat; our home; at one point, two jet skis; some individual riders for specific items; and a $1M umbrella policy all in one policy (~$3k total per year, by the way) with State Farm.

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Well, if you have antique cars or boats and more than one house or a house in another state, and cars in two different states, you can't cover them under one policy. Isn't your umbrella a different policy than the cars and boats? Maybe jet skis can be covered under your homeowners but I always had separate policies for my boats.

[SAB1]

Originally Posted by thinkxingu

What do you have that can't be covered under one policy?

We have two cars; our boat; our home; at one point, two jet skis; some individual riders for specific items; and a $1M umbrella policy all in one policy (~$3k total per year, by the way) with State Farm.

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Never heard of such a thing. Even in business. Maybe with one agent or carrier but separate policies issued for each coverage.

[thinkxingu]

Originally Posted by SAB1

Never heard of such a thing. Even in business. Maybe with one agent or carrier but separate policies issued for each coverage.

Yeah, my bad—I meant under one insurer/overall plan. That's what I get for posting before 6.

Sorry for the confusion, Tis—I just meant that State Farm has been a "one-stop-shop" for us.

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[tis]

Originally Posted by SAB1

Never heard of such a thing. Even in business. Maybe with one agent or carrier but separate policies issued for each coverage.

I used to get my business insurance in one book at the same time and everything was covered by the same company-except sometimes workers' comp. was a different company. It was great. I don't understand why they can't do that with individual policies.

[tis]

Originally Posted by thinkxingu

Yeah, my bad—I meant under one insurer/overall plan. That's what I get for posting before 6.

Sorry for the confusion, Tis—I just meant that State Farm has been a "one-stop-shop" for us.

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That's perfectly ok. I can always wish for the impossible. Actually maybe ten years ago, I did find a company that would cover everything for me but it was very, very expensive. So I decided to just keep complaining.

[Biggd]

All insurances have gone through the roof. If you put in a claim they look for any loophole not to pay. They have been hammered with loses down South so everyone pays more and gets less!

[ApS]

Originally Posted by Biggd

All insurances have gone through the roof. If you put in a claim they look for any loophole not to pay. They have been hammered with loses down South so everyone pays more and gets less!

In auto insurance, rates are higher, but not for hurricane damage.

Rates have doubled or tripled because of:
1) the requirement (elsewhere) to carry auto insurance.

2) the need to protect oneself from the "Uninsured Driver".

3) protection from fraudulent injury claims, often instigated by other drivers.

4) the explosion in carjacking (statistics lowered by calling such events "larceny").

5) recent cases where driver licenses can be purchased (as seen in the Boston Globe).

6) in recent years, millions of driver licenses have been "granted".

State Farm abandoned Florida after Hurricane Andrew; however, I've stayed with State Farm Auto since I started driving because, although they're expensive, they're also impressively generous with their payouts.

Be also advised that one popular insurance company "re-invests" premiums into noxious programs.

[retired]

I saved $1,886 in premiums for one year on two cars. Say what you want, but I'll take the cash.

[thinkxingu]

Originally Posted by retired

I saved $1,886 in premiums for one year on two cars. Say what you want, but I'll take the cash.

That's a crazy difference that has me wondering if mistakes were made on either end. I've only ever shopped around a few times, and the differences were tens of dollars unless making big changes in deductibles, coverage limits, etc.

I just don't see insurance companies with similar coverage being that different in cost, but maybe someone with professional experience can chime in...

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[Descant]

Originally Posted by thinkxingu

That's a crazy difference that has me wondering if mistakes were made on either end. I've only ever shopped around a few times, and the differences were tens of dollars unless making big changes in deductibles, coverage limits, etc.

I just don't see insurance companies with similar coverage being that different in cost, but maybe someone with professional experience can chime in.

Twenty five years as a sales rep for a direct writer. Based in Manchester, but I had accounts in NH, MA, ME, VT, FL, CA because I could access underwriters all across the country, for people with second homes or kids in far away colleges. I retired in 1999.

First, recall that insurance is a regulated industry. The Insurance Commission has a dual obligation on prices. One is to be sure companies charge rates and have reserves that are sufficient to pay claims. The other is to be sure that rates are not exorbitant or cherry picking.
This still gives companies significant latitude to increase or decrease their market share in states that are either costly or very profitable. Large companies adjust their rates to increase market share in say Wyoming, and not so much in Florida. Moving into a new market, or expanding, rates may be artificially low so they can generate enough business to support staffing as well as claims.

NH is a "take all comers" state, there is a "pool" so that insurance companies can put high risks in the pool and not carry the full burden themselves. Individual companies determine which risks they want or don't want. The pool rate won't vary much from company to company, so if you have, say, a recent series of tickets, they may put you in the pool, and you won't save a lot no matter how much you shop. At the same time, if you have a youthful operator who moves out of the house, a new application may give you a better rate, where the old company had no idea that Junior moved to Colorado. Shop your present company first.

Independent agents can shop for you, but mostly only with the companies that they have agency contracts with. Sometimes, they try to manage their accounts to keep a particular relationship in place. I used to get paid a commission on a new sale on a sliding scale based on the "quality" of the business and year end bonuses based on retention, loss ratio , the quality of portfolio compared to others in the area, etc. Pretty complicated.

In the "old days" I could pretty much ask a few simple questions and quote coverage/rates. Now, I'd have to log into "Faire Isaac" or some similar algorithm, and get tons of details, a lot of which is derived form online sources, like a credit score or driving record. This will only get better/worse as companies increase the use of AI technology.

Other thoughts. Insurance companies aren't out to screw you. The insurance commission and market forces prevent this. Calling the commission is free and they get quick responses when they call an agent or a company if you think you're being treated unfairly.

[thinkxingu]

Originally Posted by Descant

Twenty five years as a sales rep for a direct writer. Based in Manchester, but I had accounts in NH, MA, ME, VT, FL, CA because I could access underwriters all across the country, for people with second homes or kids in far away colleges. I retired in 1999.

First, recall that insurance is a regulated industry. The Insurance Commission has a dual obligation on prices. One is to be sure companies charge rates and have reserves that are sufficient to pay claims. The other is to be sure that rates are not exorbitant or cherry picking.

This still gives companies significant latitude to increase or decrease their market share in states that are either costly or very profitable. Large companies adjust their rates to increase market share in say Wyoming, and not so much in Florida. Moving into a new market, or expanding, rates may be artificially low so they can generate enough business to support staffing as well as claims.

NH is a "take all comers" state, there is a "pool" so that insurance companies can put high risks in the pool and not carry the full burden themselves. Individual companies determine which risks they want or don't want. The pool rate won't vary much from company to company, so if you have, say, a recent series of tickets, they may put you in the pool, and you won't save a lot no matter how much you shop. At the same time, if you have a youthful operator who moves out of the house, a new application may give you a better rate, where the old company had no idea that Junior moved to Colorado. Shop your present company first.

Independent agents can shop for you, but mostly only with the companies that they have agency contracts with. Sometimes, they try to manage their accounts to keep a particular relationship in place. I used to get paid a commission on a new sale on a sliding scale based on the "quality" of the business and year end bonuses based on retention, loss ratio , the quality of portfolio compared to others in the area, etc. Pretty complicated.

In the "old days" I could pretty much ask a few simple questions and quote coverage/rates. Now, I'd have to log into "Faire Isaac" or some similar algorithm, and get tons of details, a lot of which is derived form online sources, like a credit score or driving record. This will only get better/worse as companies increase the use of AI technology.

Other thoughts. Insurance companies aren't out to screw you. The insurance commission and market forces prevent this. Calling the commission is free and they get quick responses when they call an agent or a company if you think you're being treated unfairly.

Ummm...so does it seem reasonable for identical/similar coverage policies to be that different in pricing across providers?

It sounds like no (because there needs to be sufficient premiums to cover claims) unless a company is expanding and offers lower premiums for a short period of time?

OP: what provider did you come from and go to, if you don't mind me asking?

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[Descant]

Originally Posted by thinkxingu

Ummm...so does it seem reasonable for identical/similar coverage policies to be that different in pricing across providers?

It sounds like no (because there needs to be sufficient premiums to cover claims) unless a company is expanding and offers lower premiums for a short period of time?

OP: what provider did you come from and go to, if you don't mind me asking?

Similar coverages, probably yes, similar price. But different companies like or more often dislike, certain cars. In a small market like NH, they may not like your 12 cylinder Jaguar convertible because it is very expensive to repair and doesn't handle well in the snow. Better to stick with a nice AWD F-150, cheap to repair and nobody ever steals it.

[retired]

State Farm also gave us a quote much less than Allstate at $391 for six months.
Allstate $1,125
State Farm $391
Progressive $242

I don't know why the big difference. We are retired and don't drive a lot, have virtually no debt, excellent credit score and no accident history. I'm guessing that everyone but Allstate sees us as low risk good customers. Their loss.

[thinkxingu]

Originally Posted by retired

State Farm also gave us a quote much less than Allstate at $391 for six months.

Allstate $1,125

State Farm $391

Progressive $242



I don't know why the big difference. We are retired and don't drive a lot, have virtually no debt, excellent credit score and no accident history. I'm guessing that everyone but Allstate sees us as low risk good customers. Their loss.

Yeah, that's a huge difference, for sure, but given that two reputable insurers that close would definitely make me feel better.

Enjoy those savings and good luck! Maybe report back with your experiences next year?

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[TheProfessor]

Originally Posted by retired

I don't know why the big difference.

The best policy is to visit an autobody shop and ask the shop owner what company is the easiest to work with.

Are you sure you are comparing apples to apples?

Yes, one can get a lower rate if they agree to a $5,000 deductible.

Footnote. Neighbor went for the lower car insurance from one of those that advertise on TV. In a minor accident. That insurance company sent him to a body shop where they attempted to replace dented parts with used parts.

Also, some of the budget insurance companies require aftermarket (Chinese) body panels as opposed to OEM factory body panels.

[retired]

I haven't heard anything negative about Progressive's claims handling. Have you?

[John Mercier]

I seem to remember they use Irwin's as the certified.