Car Insurance Question

[Cartman]

We've been 21st Century clients for a long time and they've been pretty good to deal with through two people hitting my cars. In the long distant past Geico couldn't beat their rate. But these days the rate seems crazy high and while I've wanted to stay with them due to past dealings, the Mrs. took our policy to AAA for a quote today.

AAA was $2,000 a year less for the same coverage (still a lot of money, by the way). So on the one hand I feel stupid for paying so much for so long. On the other, I worry this is too good to be true.

Any opinions of AAA for car insurance? Rate surprises? Treatment when you need them? Etc?

 

[40xs]

The state you live in has more to do with your rates than anything, and it's guided by the number of idiot drivers doing stupid stuff causing all the wrecks.

 

[Graham]

Read your policy. Compare it to the old policy. They are contracts. There's no way to answer your first question intelligently without comparing them.

As to opinions about AAA, you will find lots of them. Whether any opinion you get has anything to do with your situation will remain a crapshoot.

If you have a claim, the nature of the claim and your claim representative will probably factor more than anyone's blind opinion as to whether AAA is 'good' or 'bad'.

Suffice it to say that insurance companies don't make money by paying policy limits on every claim. They also don't offer discounted premiums by paying their clients.

 

[Cartman]

Those are the obvious answers, but the courts are filled with thousands and thousands of people with contract disputes. My aim is not to be one of them. The terms of a contract are of dubious value if you're dealing with a company that will force you to sue to get the terms of the contract enforced.

Many companies have reputations, and they are often well earned.

 

[Graham]

Car Insurance Question

In my opinion, AAA is not the worst of a bad lot.

But instead of taking my word for it, look to see if your state publishes statistics, whether they have a board which regulates insurance companies and look at how the members of that board are selected.

And I disagree that a contract is of dubious value if you have to sue to get it enforced. In Michigan the no-fault statute permits a successful claimant to recover his attorney fees if he has to sue to obtain Personal Insurance Protection Benefits.

 

[ArcticLight]

We've been 21st Century clients for a long time and they've been pretty good to deal with through two people hitting my cars. In the long distant past Geico couldn't beat their rate. But these days the rate seems crazy high and while I've wanted to stay with them due to past dealings, the Mrs. took our policy to AAA for a quote today.

AAA was $2,000 a year less for the same coverage (still a lot of money, by the way). So on the one hand I feel stupid for paying so much for so long. On the other, I worry this is too good to be true.

Any opinions of AAA for car insurance? Rate surprises? Treatment when you need them? Etc?

$2000 LESS????????????


I just got my 7 year discount with PEMCO - I pay $587 a year..(I'm 48 though)

But, just bought a 2002 Jetta VR6, full coverage took it back up to 980 a year.

Farmers screwed me when a guy hit my truck 7 years ago and his insurance company was dropping the ball, tried to file the claim on my own and they refused me.
I walked in and cancelled policies on the boat, motorcycle, truck, HOUSE, and car.

Retribution to someone's wallet is Sooooooooooooo satisfying - FARMERS SUCKS. Loved the look when the owner walked over.
Nobody, but NOBODY tells me "Well maybe you should find another insurance agent" after 16 years of loyal paying them.

Geico is all about ripping you off with used parts or low bid cost parts - they are financial based, so you get the cheapest repair job.
I insisted on factory parts on my truck, laser alignment, and never had an issue with it from the most pricey body shop in the county (also the best)
7 years now and not even a squeek out of my truck as most wrecks will do.

Pemco picked up AFTER the accident, called the other insurance company and my truck went in for repair immediately .

They are also the *only* relationship based insurance company, meaning rates are higher but damn if you need them they will FIGHT for you.
My parents had Pemco growing up, 40 years now...Always good.

 

[sled_mack]

It pays to shop around. In NY, the agent can sell insurance below his cost to get a sale. What happens then, is he puts the insurance up a little bit every year. Not enough at once to seem outrageous. What alerted me to it was getting a newer snowmobile. Old sled was $75/year. Newer one, 2 years old, they wanted $1100/year!!!! That was my trigger point. I shopped around again, and found out I could cut my cost in half by switching. It was All State that screwed me.

The funny thing was that I bought the sled late in the season. Snow was gone till I got the bill so I cancelled it. Then the agent calls me up to say he can "pull some strings" and get that sled insured for $250. After shopping around, I moved my car, truck, house and sleds all at the same time, and my sled insurance was $75 for that same sled. Even now, 15 years later, I pay about $100/year for a new sled.

Bottom line is this - no one else is looking out for your best interest besides you. Shop around often, let the agent know you are looking around and his rates seem high. But be prepared to switch companies if he tells you to screw yourself, too.

And yes, the look on the agent's face is priceless when you go in and tell them you are dropping all your policies with them. Especially the line "but I can get you a better deal". I laughed and said "maybe next time you won't screw someone for years first?" Insurance is a necessary evil.

 

[40xs]

Once an insurance co. has satisfied it's stated policy limits your only right of action is to the adverse driver. State law has no jurisdiction beyond the policy limits. You have to sue the policy holder. the insurance company has fulfilled it's obligation up to the paid for limits.