I have Allstate. Been with them for years, and they have been mostly ok, as you often had to remind them that their premium hike was unacceptable. Then, they came back with the bullshit, "We recalculated and got you this discount blah blah blah". But this upcoming renewal is the last straw that gave me motivation to get off my ass to find a better deal elsewhere (Progressive).

Allsate: previous 6-month premium = $566. Upcoming renewal = $757!

Progressive = 6-month premium = $314. And, this is for the same car, with slightly better coverage.

So, to Allstate, AMF. Tired of wasting my time dealing with your bullshit.

And, to those who are industry insiders, what the hell is going on with these companies?

I may have to look at Progressive. I've been with USAA for decades, but have experienced seriously declining service in recent years.

quote:

Progressive = 6-month premium = $314. And, this is for the same car, with slightly better coverage.

^^^^^^^^^^^^^^
Not an insider, but sounds like a teaser rate. What you have to look at is how they handle claims. Some are terrible at claims.
You might want to look at an Umbrella policy with your career. I would also have a personal face to face meeting with your agent.

1997 Toyota Corolla - 195,000+ miles
2011 Toyota Venza - 68,000 miles

Progressive - $900 per year for both

I have zero loyalty to any insurance company. I shop for quotes near the end of my coverage and go with the best bang for the buck.
My Ex is a Farmers agent and for many years was the manager of a large State Farm agency.
She always says shop for insurance like you do any other product or service.

quote:

Originally posted by 12131:

And, to those who are industry insiders, what the hell is going on with these companies?

I'd sure like to know!

Our homeowners is really trying to screw us over on water damage repairs. They're offering 1/3rd of what the builder estimated. The builder is who built this house 3 years ago, and the work is to bring it back to original standards.

I've been with this company for about 35 years. Never had a homeowners claim, and only one auto claim 20 years ago. They've more than made their money on me.

Though I hope for satisfaction on this claim eventually, I will seriously look for a different company when we're done.

They are like the cable company - long time customers get the worse pricing

When I moved to my current location, I was recommended an insurance agent/company by my realtor's wife.

The agent screwed me badly but I didn't know it at the time as it was less than I had been paying.

Talked to GEICO later and got the same coverage for half the money.

Sometimes it's just an agent looking to make a fast buck.

quote:

Our homeowners is really trying to screw us over on water damage repairs.

^^^^^^^^^^^^^^^
Burst pipe? I hope you have done immediate remediation to preclude mold. These claims are expensive.

Not sure if there is a group that spends more money on advertising than the insurance industry.
I read somewhere that State Farm was the big dog with around 17% market share with all the rest
in single digits and grinding it out for a tenth or two.
It's been said there is no gratification in buying insurance so a good mascot is paramount.

I had the same issue with Comcast and T-mobile. They each took my long history for granted. I asked each to be more reasonably and competitively priced. Each condescended temporarily. I dumped them both. Each took a parting shot that could have cost me plenty. Both parting shots were illegitimate and resolved in my favor.

But to answer your question, I think it's a matter of numbers. More people are willing to accept the rates than to go through the hassle of switching. They'll sacrifice the few to bleed more from the many.

quote:

Originally posted by 12131:
what the hell is going on with these companies?

Maybe if they just took care of the policy holder they wouldn't have to drop tens of millions of dollars on national TV ads trying to bring people in.

Because the simple answer is they don't think you are going anywhere. A crazy high% of people pick an insurance company and stick with them for life.

As a scenario say you buy a $50k car and get insurance for it. Lets say 5 years later the car is worth $20k. Have you ever had your insurance premiums drop in accordance with the value of your car? Of course not.

If you go and ask a new insurance company how much is insurance for your now 5 year old car they will of course give you a better rate than your insurance company did what was once a brand new car. Just one simple example.

quote:

Originally posted by ZSMICHAEL:

quote:

Our homeowners is really trying to screw us over on water damage repairs.

^^^^^^^^^^^^^^^
Burst pipe? I hope you have done immediate remediation to preclude mold. These claims are expensive.

Oh yes. We paid the company directly. It was costly but less than our deductible.

Now the issue is all the replacement of damaged sheetrock, baseboards, interior doors, and flooring. This is a custom home of high standards, so the materials are not cheap. That's where the insurance company is balking. They want minimal amounts of replacement, and using cheapest materials for what does get replaced.

After many years with USAA, I dumped them, because the value of your vehicles depreciate and the premiums remain the same. I saved $75 per month with Jake and State Farm, which surprised me.

quote:

As a scenario say you buy a $50k car and get insurance for it. Lets say 5 years later the car is worth $20k. Have you ever had your insurance premiums drop in accordance with the value of your car? Of course not.

^^^^^^^^^^^^
You can certainly drop your collision insurance at any point and get a lower rate.

quote:

Now the issue is all the replacement of damaged sheetrock, baseboards, interior doors, and flooring. This is a custom home of high standards, so the materials are not cheap. That's where the insurance company is balking. They want minimal amounts of replacement, and using cheapest materials for what does get replaced.

^^^^^^^^^^^^^^
Sad thing is they can continue to play a waiting game. I assume you are living elsewhere and insurance is covering the lodging??

quote:

Originally posted by 12131:


And, to those who are industry insiders, what the hell is going on with these companies?

Personal Finance Radio host Clark Howard said that the insurance companies have an algorithm which found that their long term customers were the least likely to switch, even when their rates went up. So, up went the rates on the long term customers.

quote:

Originally posted by 12131:

quote:

Originally posted by snwghst:
*****************

Last I checked, this thread is apolitical.

I deleted. after I thought about my post a min

25 + years ago, when I moved into the state some of my family already lived in, I took their advice and got with our Farmer's agent, Buddy, that had been taking care of their individual insurance needs for years. He was fantastic; met in person, asked questions, got to know me and my needs, and tailored my coverage at a reasonable rate.

But, a few years later he retired and sold the business. I stuck with the new guy a few years, but rates drifted upwards and I didn't have the same relationship with him, so I bailed out.

Last 10-15 years I've been bouncing between Geico and Progressive, depending on which offers the best rates. As painfully WOKE as Progressives' internal structure and corporate business policies/ investments are (they don't call themselves Progressive for nothing), it galls me to do business with them, but they do have attractive intro rates... but even with an excellent driving record and my last speeding ticket maybe 10-11 years ago and, even with no claims and receiving both the "good driver" discount and the "loyal customer" discount, my rates increase every year.

So, I jump over to Geico for a few years when their rates are better, and then back to Progressive. It's probably about time for me to start looking at other insurance companies.

I agree with the previous comments that insurance companies make a calculated decision to raise rates, knowing that customers will most likely pay the higher rate rather than going through the hassle of rate shopping and switching... they are counting on relatively wealthy customers just paying for the convenience of staying with them while tossing them a bone in the form of supposed discounts.

To be fair, my agent 25 years ago explained that with the large number of military bases/ military personnel we have in the area, that leads to higher car insurance rates. The claims resulting from both extreme weather and wildfire loss are significant factors, and since marijuana was legalized 10 years ago there has been a significant increase in pot-related accident claims... and now that psychedelics have been legalized in the state, it wouldn't surprise me if car insurance rates jump up because of that. Ohh, supposedly we have the highest rate of car thefts in the US now too, which I'm sure translates to higher rates as well.