Comments on: Ignore Car Insurance Marketing Pitches

By: Kevin

Kevin — Sat, 14 Mar 2009 22:27:34 +0000

@Jon: Glad to get additional word from “an insider”. We ran a rate quote from Progressive and it beat our current policy. I’m going to call and see if our current company can beat the price, if not, we are moving.

@Holly: The only problem with switching to a company like AIG is I want to have insurance from a firm that I know is going to be around. I suppose if the government is going to end up owning them that might be a safe bet, but you don’t know what changes might be made.

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Sun, 08 Mar 2009 16:51:33 +0000

[...] Debt Plan shows us what car insurance companies mean when they tell us everyone who switched save money, it is marketing [...]

By: Holly

Holly — Sun, 08 Mar 2009 16:44:51 +0000

We had auto and home hazard insurance w/USAA (military). Every one of my husband’s family members would laugh when I would say that I would like to shop around to see about getting a lower rate for my auto insurance. Well, after 14 years, guess what?! I was overpaying by over $50/month! I switched to AIG (I know, YUCK, right?)and saved $600+ in one year. I haven’t had to use my coverage yet. The rate has stayed the same when it was time for the renewal.

By: Jon Smith

Jon Smith — Fri, 06 Mar 2009 13:23:22 +0000

@Kevin: We buy online from Progressive. We did the same, online then a phone conversation. We’ve had to use our insurance 3 times in 6 years, and all 3 times we had a great experience.

I will say that I work for a company that makes software for the insurance industry. We have large claims departments and small agencies using our software. And in my experience from visiting those claims organizations, you are right. There’s not much an agent can do that you can’t do yourself.

By: Kevin

Kevin — Fri, 06 Mar 2009 03:21:03 +0000

@Finance Nerd: Having worked in the car rental business, I disagree. I’ve found agents to be unable to do much with the claims center that a polite speaking customer would not be able to accomplish.

Additionally, agents won’t be able to help you if the wreck doesn’t go on your insurance (isn’t your fault). You’ll be dealing with the other insurance firm’s claim center. (Although your insurance company might persuade them to speed up the process, I don’t think an agent is necessary for this).

My two cents.

@Jon: Are you buying online from one firm or just the lowest price? Have you needed to use your insurance in the past 6 years? We have Geico and are happy, and that was an online then phone conversation to get coverage.

By: Jon Smith

Jon Smith — Wed, 04 Mar 2009 21:45:47 +0000

I haven’t had an agent in about 6 years. I buy online, and I’ve always had a good experience with the insurance company. I know this may be an exception, but so far, it’s worked out.

We recently switched my wife’s car to my policy and saved a good bit. This was probably more to the fact that both cars were on one policy, but either way, we saved.

By: Finance Nerd

Finance Nerd — Wed, 04 Mar 2009 16:25:23 +0000

The benefit of an agent is not that they know your situation inside and out, it is that they are more likely to have your back if the insurance company denies your claim, or tries to lowball you. At least that is a common argument, but I have no idea whether it is true.

For example, if you use GEICO and have a questionable claim, you don’t really know anyone who you can ask to make an exception, or give you a break.

But, if you have an agent, he may value your business enough that he will go to bat for you with the carrier.

According to this argument, cutting out the middleman may be cheaper up front, but may cost you more if you ever have a claim.

P.S. I agree with you on the annuities, but that is a whole separate topic!