I'll check that out sometime when I get more time (just got home and it is Friday evening). I'd also like to get my hands on a policy to really read about it (what they say on the website is for general public consumption, probably not what their policy says).

You alluded to jumping around lots because your experience is that other companies also have better rates for first year policyholders. Which other companies are you talking about there ?

Thanks.

 

No, I did not say that I did "jump around." I said, "One thing to keep in mind is that insurance companies offer more attractive rates to a new customer for the first policy year. So though it's a pain, you can save money if you change companies often and shop around for the lowest cost. Personally, I don't, but perhaps I should."

Incidentally, I don't think policy terms or policy language of your policy has anything to do with it--it's a marketing ploy. Rates may be approved by the insurance commissioner in the state where you are located but insurance companies do not all charge the same premium for the same amount of coverage. Isn't that why we shop around? To find the lowest price? Check out any 5 main line insurers offering say, $300,000 single limit coverage and you will find 5 different costs. If, as you suggest, the insurers must charge the same rates and can't give discounts without some good reason why does the cost of the same coverage vary from company to company? Insurance commissioners do not exist to create a monopoly, but to protect the public. How is the public protected if insurers are required to charge the same price? That sounds like price fixing to me.

Anyway, if one takes the time to shop around for the same identical coverage you can find it a lower cost than some insurance companies are asking. I'm talking about main line solid insurance companies with good ratings in the industry. Lower prices is how they compete for new business. YMMV.

 

Okay, you're playing semantics with me.

So, you don't jump around, but you THINK you should. That might be wise if you can constantly find insurers that offer this First Year Discount like Progressive apparently does (marketing ploy to attract new business because they're failing to make gains against their competitors, I would bet). Otherwise, you're giving bad advice to people reading your post because most people will benefit in the long run by staying with their company to build up safe driving discounts (now there is a discount that the great majority of insurers offer).

While I would agree that it is a marketing ploy, as I did in my first paragraph, I would still like to see the policy. Better yet, their rate manual to see exactly how this discount works. But assuming it only applies for the first year, is it really a good marketing ploy for someone who is looking for a stability and who doesn't want to jump around every year ?

Of course not all companies charge the same rate for the same risk. They all develop their own rates based on statistics their actuarial department gathers. While it's true most companies share statistics, not all do. So that's a large reason why rates vary. So no, there is no price fixing in the insurance industry, I can assure you.

Yes, lower rates are one way insurance companies compete for your business. But as I said in an earlier post, if you're basing your decision on which carrier to go with simply by the best rate, you are doing yourself a great disservice. This is not a tube of toothpaste you're buying here... they're not all pretty much the same thing. There's lots of other things to consider when determining which is the company you want to give your money to. Again, laid out in an earlier post. But if you want to treat your auto insurance as a commodity, go ahead, some folks do and I understand their point even if I don't agree with it.

 

Chili Red & Pepper White this is my last post on this subject. It's not semantics and I hardly see how obtaining insurance coverage from any reputable main line insurer with a good rating in the industry for the least amount of premium payment is bad advice.

I seriously question whether you know what you are talking about.

 

That's fine. You're entitled to your opinion.

And, FYI, some of these "reputable main line insurers" you're talking about are known for their lousy claim service. Maybe that's not important to you. To others, it is.

Even though you said that's your last post, I'd be interested to hear your qualifications in the field of auto insurance.

 

Very Happy with Erie and the claim resolution.

 

Excellent !! Very glad to hear it, even if they are one of our competitors.
My parents have been with Erie for 30-some years, and they're also happy. Good company.

 

Chili Red and Pepper White are you the guy with State Farm all over your car that went to MTTS?

 

No, that's an agent down in Virginia. Forgot his name.

Me... I was an Auto Underwriter for about two years, and Underwriting Manager for three years, and now I'm transferring into the Claims Department.

 

Oh Ok, I did meet him. Nice guy!

 

I've never met him, but read about him in an article. He has a great advertising technique for the company and his agency. What could attract more eyes than a MINI ?? Other than a hottie in a MINISKIRT, maybe.