Time to change your auto insurance company?
Posted by Frugal on October 17th, 2009
I have noticed that Ameriprise, the auto insurance company thru Costco has been raising its price. I just have recently changed to GEICO, because when calling their sales agent, he was willing to not only match the prices from Ameriprise, but also lower the price by a little bit more.
A solid proof again that NOT everything at Costco is cheaper.
After my previous minor car accident, which cost GEICO about $500, they still did NOT raise my price as promised by their customer representative. I’m amazed, and a little guilty, since this is the first time ever that I take money out of the insurance system. GEICO was extremely unlucky in the sense that I have never had an auto claim in my life so far, which is about some 20-year driving history. For all of their great customer experiences, and my “under-water” account (a negative $130 return for the first six months), I’m giving them a thumb-up.
I’m 95% sure that you cannot beat this deal from all major insurance companies. I only pay for $370 every 6 months for two cars having
$100K/$300K body injury liability,
$100K property liability,
$1000 deductible for comprehensive on both cars
rejecting uninsured/under-insured motorists coverage
and $1000 deductible for collision coverage only on my 2-year old Honda Odyssey. My other car is a 10 year old Toyota Camry.
I believe GEICO is quite aggressive in acquiring new customers. So you should be able to negotiate with the sales agent for a little better price if you call them up.
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October 17th, 2009 at 9:24 am
I guess you really CAN save a bunch of money on car insurance by switching to GEICO!
October 17th, 2009 at 9:22 pm
I have never understood the pre-occupation and focus on the premium price only. Look at all the ads and they all promise to save money. All the junk mail claims the same. Sometimes they might mention service but of course they would say it is top notch. You only find out when you have to claim what the service is like and even then that could vary based on the people involved in processing your claim and whatever parameters it tickles in the computer system. (Some people have even tracked down what software is used by which companies.)
I first started out with Farmers but read enough about their poor service (there is a small cottage industry in websites about how they suck) that I changed to one praised by many people I know personally who have been involved in claims and accidents. On telling Farmers that I quit, they then thought the issue could be addressed by lowering my premiums!
It looks like Geico has a similar volume of complaints although not as many dedicated sites. Ameriprise has about a tenth the volume (and presumably a tenth the customers) but many of the complaints are about small business services and financial advise. However I would expect that if you had an unresolved issue you could at least bring it up with Costco whereas the other companies would require you to file a lawsuit. (In my case despite being a fanatical Costco member I’d never do business with American Express ever again – yes due to horrifically bad customer service.)
October 18th, 2009 at 10:16 am
I noticed that because I live in Massachusettes, we cannot even get insurance with certain companies. There are MASS laws that everyone has to charge the same for car insurance….or so I heard….weird.
October 19th, 2009 at 1:37 am
Its good to see competition pay off. Now you have to look at the service they give you when you need it. An insurance company with poor customer service is not worth it.
Dr. Letitia Wright
The Wright Place TV Show
http://wrightplacetv.com
http://www.twitter.com/drwright1
October 20th, 2009 at 4:14 am
USAA is better, however, you need to have had parents who’ve served in the military.
I just wrote about how everyone should get an Umbrella Insurance Policy at Financial Samurai. It’s open enrollment season now!
BTW, are you still short the market frugal? What are you doing in your PA?
Financial Samurai
October 21st, 2009 at 1:52 pm
It’s funny you bring this topic up. I get an increase every year my insurance plan is up for renewal. I think it’s time to make a phone call…
October 23rd, 2009 at 5:37 pm
Try having a wife who semi-totaled 2 SUV’s in the span of 4 years. Both her fault, no DUI, injuries (none very serious) to both parties both times. “Squirrel ran onto the road!” first time, second time just careless. (!) Lucky to still have the same ins carrier, Allstate. Try paying $2900/6 months; cheaper a bit elsewhere but coverage is barebones crap limited tort. Do ya think this subtracts a wee bit from my actively wanting to be a millionaire?
November 10th, 2009 at 7:16 pm
Desiree, I don’t live in MA and don’t know what the laws are there, but I’ll tell you this: I recently got my Geico magazine and in in this latest issue they announce that they are now offering in MA too, so apparently they just now brought their policies in MA to within the law so can offer there too…
November 23rd, 2009 at 5:34 pm
Mike F.: I would ask your wife to take the bus. Better for your pocket, better for her health and better for the rest of us driving out there…
November 23rd, 2009 at 5:35 pm
Mike F.
I would ask your wife to take the bus. Better for your pocket, better for her health and better for the rest of us driving out there…