Insurance Quote Review
Which One Is Best for You?
The first and biggest reason auto liability insurance is getting expensive is that the majority of states require it! That's the single reason why it's become as expensive as it has. The insurance companies know you are REQUIRED to buy it or get fined by your state gestapo. This makes competition a little luke warm.
The other reason auto liability insurance is getting expensive, specially with Geico (cute little gekko), Progressive (Flo), The General (carton character with a helmet) are the costs of marketing to you.
They are spending so much money on marketing dollars that even if you can get covered by them, they're charging ridicules premiums for very poor coverage. If you are even close to being high risk, they're dropping you cause they need to maintain their bottom line.
The biggest mistake is holding on to your company because you've been with them for XX years. This loyalty is often unjustified because you may have never submitted a claim, but the first time you do they increase your premiums. Being loyal to a company that doesn't show loyalty to you also means the company doesn't have to worry about competition if it knows your not going anywhere.
Marketing is a science and many insurance companies have invested in the science of marketing. They know how to pull your chain and they do so. Some companies like Northwestern Mutual rarely advertise (usually only during college sporting events) while other companies like Country Financial don't advertise at all.
They pride themselves in having reasonable premiums and superior customer service so much so that their advertising come from word of mouth. I'm particularly impressed with Country Financial's life insurance product because it's a participating company meaning your cash value will grow faster and bigger over a non-participating company. I've found Northwestern Mutual to have higher premiums with less cash value accumultion.
But back to auto insurance, I still believe that holding insurance companies accountable by immediately switching from one to another, whether or not their going to raise your premium, puts you in the driver seat and not them. They have to compete harder for your insurance premiums and are more likely to keep rates low.
Want to lower their rates? If everyone would reduce their driving habits by riding a bike, carpooling, or taking a bus thus totally reducing miles driven in a week, premiums would go down.
Another way to reduce rates is by protesting the state gestapo's requirement to have liability insurance. In my state liability insurance for a 23 year old male was about $25 a month, this was in the early 1970s. Then the state made liability insurance mandatory. As of today liability coverage on me (a 55 year old male with zero at fault accidents ever) is $45 and I drive ONLY 5 miles a week. I ride a bike to work (it takes me 15 minutes to jump on the bike and get there) and shop once a week (sometime less) making my total weekly driving mileage 5 miles or less. So the insurance risk on me is almost zero, but yet the state gestapo requires me to buy a product that I have never used in my 39 years of driving and the insurance company just smiles as they take my money. Since I began driving I have paid an average of $150 a month (this includes the years I owned a new car and drove more than 10 miles a day). In 39 years I've paid the insurance companies $70200 for the privilege (sarcasm) of calling them my insurance company. The alternative to that is not owning a vehicle, not much of a choice right!
Just signed up. My parents have had Geico over 40 years. I went with State Farm 30 years ago due to the government employee restriction. I was very loyal to State Farm until I had to add a teenage driver. There was $135.00 difference a month. For myself , Husband ( with 2 tickets) and 17 yr son with 2 cars my rate is $198.00 once my son gets his car ( Grandpa's old car ) my rate will be $240.00. State Farm's rate for all 3 with 3 cars was $375.00 a month. I am saving $1,620.00 a year!
The only down fall was the very, very ,very pushy agent. Nice but she wanted to seal the deal! I told her I have the funds slated for my current auto insurance payment and she said just let it reject. I said no because my life insurance is on it then she dove into my personal business and became almost agitated I did not want it taken out that day. This leads me to believe she had a quota to meet for that bonus. She hammered for a post bill . I told her I needed to brake up with State Farm first. She pushed again . I caved. The process was very overwhelming for me . I hope I did not make a mistake.
Added Note: Do not seek Life Insurance. The agent was not pleasant at all and I am glad I did not switch now that I know they act as broker.
I have been very happy with State Farm. They were took care of me. Money talks. They still have my home and life.
Auto Insurance Quote: What to Look For
Let me just start by saying I work in the insurance industry and have been for a long time. I work for a large insurance company, and we have some of the highest customer satisfaction ratings in the industry. If your rates keep going up, the main reason is mileage per year (like big name companies). Geico and other companies calculate your rate based on years of driving (CA only), where your car is stored or parked (zip code), and mileage per year. If your rates are going up, either you added coverage, more claims have been filed in your ghetto neighborhood, or they caught you under reporting on your mileage. If you don't like it, stop speeding, filing claims, or living in a crappy neighborhood with a nice, newer car.
The problem with people and their rates going up is because of the risk. Here in California, because rate classes are based on years of driving experience, if you are younger than 20, your rate will be very high if you are driving a new car, are not in school, and live alone. If you are a full time student, don't drive very far, and get straight A's along with having been a driver for more than 3 years with no suspensions, tickets or accidents, you would get the good student discount, 5 years good driving, and CA good driver discount (that last one is a minimum 20% off of your rate required by state law).
Everyone's rates are going to be about the same for the same risk. take mine for example: Keep in mind, I do not receive the CA good driver divers discount due to a license suspension, I have a brand new Subaru WRX, 27, full time student, and have an insurance provider discount of only $200 a year and live in a nicer area of town in CA.
Geico: $1845 a year for auto.
Auto Bodily Injury Liability= $100,000/$300,000
Property Damage Liability= $100,000
Medical payments= $25,000
Collision= $1000/waiver (CA waiver for uninsured motorist accident if not at fault)
Rental Reimbursement= $50 per day/ $1500 max per covered claim
MBI (mechanical breakdown insurance)= $250 deductible
- MBI is for mechanical or electrical failure for 7 years/100,000 miles that covers more than the dealer's warranty and can only be added when the car is brand new (<15000 miles on OD and <15 months old). Exclusive to Geico
Progressive= Same coverage without MBI = $2100 year
Allstate= Same coverage, no MBI = $1975 year
AAA= No MBI and mileage for towing is only allowed up to 75 miles max= $2200 year
Progressive = didn't bother due to low customer satisfaction ratings after 3 years
Insurance Quote: Our Verdict & Recommendations
While the above criteria are certainly valid in evaluating insurance companies, I do think more attention needs to be paid to the way the policies are actually put together. Most consumers and, sadly, many agents are not at all familiar with the actual verbiage used within the contracts themselves. Are expenses fully disclosed and identified? How can expenses be adjusted within the contract? In cash accumulation policies, how can I get my money out and what will I be charged (interest or otherwise) to get my money? In term policies, if my health changes how long do I have the option to convert and, if I do convert, what can I convert to? It is hard to measure complaints about items consumers are not made aware of. The fine print matters.