Do Insurance Companies Lie?

On TV, all the major car insurance companies, Geico, Allstate, State Farm, Progressive, claim they are the cheapest and will beat all their competitors. They can't all be the cheapest, so somebody is lying. I've been with State Farm since 1965, I've never had another company. Last week I called Geico and Progressive just for fun, and they couldn't even come close to what I'm paying State Farm. It was a joke and I told them as much, to which they said nothing. Something is fishy here..

Did you know the four out of five dentists surveyed recommend sugarless gum for their patients who chew gum*?

Well, when is the last time someone said, "check our price, we are highest!"

Being serious, I'd wager most people they can save money are people with a few bumps on their driving record and credit. If you are a safe and stable driver, and the fact that you have been with the same company since 1965 makes me guess you are, your insurance company will give you a great quote. I have Geico after 20+ years with Liberty Mutual interrupetd by one year of a different place who would no longer write for me after I left employment there. Two glass claims in three months (freak accident) was all that was bad on my record for over 15 years. No at-fault claims since the 1980s. Virtually any major will give me a good price. Now, if I had a marginal claim that Progressive wanted to boost but Geico could overlook then they could save me money. As it is, over 30 and no accidents or points price will always be similar. Claim speed is my thing along with just good service. I doubt I could save $100 a year. You are probably in the same boat.

What ticks me off about SF is they have nothing in my file that says how long I've been with them. This is my 6th agent, the others died or retired, and they don't care that you've been with them for 45 years, just that you pay every month.

They certainly know how long you have been with them. Maybe, the agent does not, but it's not the agent who sets the price.
That is the reason you can't find a cheaper rate anywhere, insurance companies are really big on the "loyalty" thing - the longer you stay with them, the less likely you are to find a better deal, because of all those loyalty reward rates, or whatever they call it nowadays.

This is unlike, phone or cable companies for example, where you have to be a "new customer" to get a decent deal out of them. Now THIS I think is just stupid ...

The government allows some companies to make claims like that without problems. "Our toothpaste is the best!", "Tide makes your clothes the brightest!", "Big Red gum is the longest-lasting!"....anyone can make these claims because the government considers them all the same anyway. It's all subjective. Insurance companies can say the same because each client has individual needs and will qualify for certain discounts over other clients. so "we are the cheapest" will be true for enough customers that the ad claim is not overall a lie. Geico WILL be cheapest for some, Progressive WILL be cheapest for others. Still have to do your homework though.

.....

My insurance company actually *lowered* my premium. I was shocked. I have been with them for a while. They are not one of the Big Four, but are a large regional. I use an independent agent.

By the way, how much are your premiums? I pay $87 a month, which I think is high, but I had a stretch where I got in a ton of accidents. (Since sold the car).

I pay $37 a month for everything but collision, it includes road service and I'm fully covered if I rent a car.

The insurance company adds I see are worded carefully:

"People who switched to (insert insurance co name here) saved an average of $465!"

Well, they could ALL be telling the truth! You called up a competitor and they quoted you a higher price, so you won't switch. You are not captured in the statistic.

If you called up a competitor, found a lower price and did switch, then you would be captured. You'd only switch if you save, and insurance cos could be trading clients, each of which is saving because of how premiums are calculated differently at different companies.

They don't need to lie, they just word their adds carefully.

There's a pattern here. Young people can't write, dealers cheat, insurance companies lie and people welsh on their debts.

So I ask: What is this? Downer week at WoV?

It's "No Rose colored glasses" week.

Perhaps a positive spin......

1. Perhaps young people can write. A girl studious enough to write well is probably better equiped to handle a boyfriend without confusion and angst that requires assistance. Basically, intelligent and literate girls can handle their lives, and DON'T get advice from a gamblers' forum. What kind of advice is she seeking?: "I'd lay 5-to-2 that he isn't nailing your sister...." Actually, it's a good place to get odds on the situation...
2. Dealers don't cheat. Players take shots. Players RULE!
3. My insurance company has been straight up.
4. People DO welsh on their debts. Happened every time I sold a good car I was getting rid of.
New rules on that:
- I fully detail the car and change the oil.
- I Fully document its condition with an "as is/no guarantee/no return" clause. I fully disclose its running status, - so you don't welsh.
- Full cash up front.
- Buyer signs a bill of sale with his driver's license number.
- Plates come off and go straight to the DMV.
WE can have a post on how to sell your used car the RIGHT way...

There are two basic types of insurance carriers -- standard and non-standard. Most large carriers, i.e., the big four have more than one carrier within their insurance umbrella. These companies have underwriting guidelines that place their insureds in a tier based on their guidelines which include driving record, age, sex, marital status, children in the household and their age and sex, number of autos insured, types of autos and their useage, geographical location of the insured, and now a heavily weighted area - credit score. When all the pieces are put together for the carriers "perfect" driver(s), the best rates they have become available or the rates are adjusted to fit the "risk."

I had been with Safeco (Liberty Mutual) for a long time and four years ago I receive a speeding ticket. Over the four year period my rates increased every year. The ticket came off the (underwritning) grid but the rates continued to rise. I shopped and because my profile fit the "perfect" guidelines my new rates with the new carrier on my three autos totaled a $900/yr reduction in rates. The new rates were the same as I had paid in 2007. The coverages were identical.

The moral is simply take the time and do the shopping with the big four and with a large independent agent that represents a number of STANDARD companies.

tuttigym

Quote: Paigowdan

DON'T get advice from a gamblers' forum.

Okay, you're really really tempting me to steal that as a sig line.

Go right ahead, my blessing.
Getting advice here on your LOVE LIFE is just asking for trouble.
Betting, yes. Game design, yes, sometimes....Love Life?...another ball of wax...