Sorry for the ot but I got a new vehicle and my current insurance company jacked my rates up based on the value of the vehicle. My current policy expires next week. I am curious if anyone knows the process for switching with a cheaper policy. For me it looks like AAA has an insurance partner with the best price. Liberty Mutual, Cure, Esurance, and Geico were all about the same price.
OT - changing auto insurance
- Thread starter RUfinal4
- Start date
I'm in the insurance industry, so here are my two cents:
First, when switching carriers to save some money, make sure you're comparing coverage apples to apples. Second, do some research on the claims paying reputation of the carrier you choose. If you're going from a carrier with a good claims reputation to one that's poor or mediocre, perhaps consider using the savings to purchase an umbrella policy to sit over your home and auto. They are usually inexpensive.
Personally, I did switch to Geico recently and the savings was very substantial. I also purchased an umbrella policy just in case Geico decides to act like a douche in the event I have a liability claim.
First, when switching carriers to save some money, make sure you're comparing coverage apples to apples. Second, do some research on the claims paying reputation of the carrier you choose. If you're going from a carrier with a good claims reputation to one that's poor or mediocre, perhaps consider using the savings to purchase an umbrella policy to sit over your home and auto. They are usually inexpensive.
Personally, I did switch to Geico recently and the savings was very substantial. I also purchased an umbrella policy just in case Geico decides to act like a douche in the event I have a liability claim.
If you have a more expensive vehicle I would consider switching to New Jersey Manufacturers. They tend to lean towards providing more coverage for vehicle rather than slashing coverage to reduce your premium. As the poster above said, make sure when comparing prices you are also comparing coverage. With NJM, I have found their price seem higher at first, but when comparing coverage, you realize your are paying a small amount higher in premiums for substantially more coverage. Just my .02.
This post was edited on 4/15 10:12 AM by RUsojo
This post was edited on 4/15 10:12 AM by RUsojo
We've been with State Farm for years and checked out Geico for the hell of it. We love SF and they have always done the right thing by us but I kept hearing how Geico is all the rage. Geico ended up being more expensive than SF. I probably would not have changed anyway just to save a few dollars but it was worth the exercise for peace of mind.
thanks. I looked into NJM but I don't qualify because my company is not part of the NJBIA. I did mock up a quote and they were $75 cheaper than the AAA quote which is $400-600 cheaper than the bigger insurance carriers.
If I decide to change does it need to be done before my current policy expires or can it be done at any time during the policy period?
If I decide to change does it need to be done before my current policy expires or can it be done at any time during the policy period?
This is a well known insurance industry trick - thinking you can only change when policy expires etc. You can change any insurance policy at any time - in fact if you have paid your annual premium in advance and cancel half way through - they will owe you a refund of the unearned premium.
However - do not underestimate the advantages of consolidating your policies (homeowners, auto, etc.) with a single provider - there are multi-policy discounts, nor the advantage of having an ongoing long term relationship in the event of accidents or claims on your policy.
Mocked up quotes generally are only estimates - they will need your exact VIN and exact driver's record to put you into a risk category and quote you an accurate premium.
Also - not sure what the above poster is talking about saying NJM doesn't reduce coverage to bring premium down or whatever. You decide your coverage, your deductible, etc. Once you decide those then you get a like for like quote from different providers. If you have a 10 year or more relationship with a provider I would be looking for at least a 15% premium reduction to consider switching.
Liberty Mutual has a benefit in partnership with the Rutgers University Alumni Association. The program provides a discount if you tell the agent that you are an Alum. I have had the program a few years and am am very happy with both price and quality of service.
There is also a link to talk to the Liberty call center on the RUAA site under benefits.
There is also a link to talk to the Liberty call center on the RUAA site under benefits.
I am an independent insurance agent, representing a whole slew of companies... no Geico, State Farm, Allstate etc though, but have a better than average understanding of those companies.
Fact of the matter is, there is no one "Best" company. You and your neighbor are two different people, even if you drive the same cars etc. With the enormous amount of rating factors that go into an auto rate, one company will be great for one person, not good for another. Young drivers, town you live in, how far you drive, and very important now, your credit score (or insurance score... which is largely based on your credit)
Geico can be good, but they are bad in other aspects. They are notorious for giving a great starting rate, but they don't do a full account of the underwriting information until after the policy is issued. Then your 6 month renewal comes out and there is a significant jump. I have also had people leave me to go to Geico because they were saving hundreds of dollars, but in one spectacular case, the company left collision off their 1 year old car. The client found this out AFTER getting into an accident. Imagine the headaches trying to get that straightened out.
The "College" discounts are a funny thing. There are discounts like this that are available through direct markets, but other discounts are only available through agents. One carrier that I represent is also a direct writer and offers the "College" discount. When I tried to get the discount applied to a quote, I could not... but there was another Affiliation discount that I could get applied that the client could not get by going direct.
NJM is a great auto carrier, though they are not the untouchable company that they used to be. Years ago If someone asked me to quote against their NJM, I wouldn't waste my time. Now though, we can beat them frequently even with their "rebate". BTW, their home policies are "Tofu"... nothing spectacular.
The suggestion on packaging the policies is spot on. Doesn't always work, but is one of the best discounts available.
Fact of the matter is, there is no one "Best" company. You and your neighbor are two different people, even if you drive the same cars etc. With the enormous amount of rating factors that go into an auto rate, one company will be great for one person, not good for another. Young drivers, town you live in, how far you drive, and very important now, your credit score (or insurance score... which is largely based on your credit)
Geico can be good, but they are bad in other aspects. They are notorious for giving a great starting rate, but they don't do a full account of the underwriting information until after the policy is issued. Then your 6 month renewal comes out and there is a significant jump. I have also had people leave me to go to Geico because they were saving hundreds of dollars, but in one spectacular case, the company left collision off their 1 year old car. The client found this out AFTER getting into an accident. Imagine the headaches trying to get that straightened out.
The "College" discounts are a funny thing. There are discounts like this that are available through direct markets, but other discounts are only available through agents. One carrier that I represent is also a direct writer and offers the "College" discount. When I tried to get the discount applied to a quote, I could not... but there was another Affiliation discount that I could get applied that the client could not get by going direct.
NJM is a great auto carrier, though they are not the untouchable company that they used to be. Years ago If someone asked me to quote against their NJM, I wouldn't waste my time. Now though, we can beat them frequently even with their "rebate". BTW, their home policies are "Tofu"... nothing spectacular.
The suggestion on packaging the policies is spot on. Doesn't always work, but is one of the best discounts available.
I switched to GEICO a few years ago when my previous carrier no longer offered umbrella liability and a similar policy from the company they recommended would have been almost triple what I had been paying previously. I saved $$ with GEICO on the auto policy (with no significant rate increases since) and bought a $5 million umbrella for the price of my previous $1 million umbrella.
Had an accident with another GEICO customer, who acknowledged responsibility. It was all settled in three phone calls on a Sunday morning and, best of all, GEICO had a service office in a top local body shop to make the repairs simple and easy -- even set up a rental for me. ("Premium"class because my car in a Mercedes.
The only problem I have had is with payment via credit card online. The website often displays contradictory information about my scheduled payments and I have to call to confirm. No big deal.
Had an accident with another GEICO customer, who acknowledged responsibility. It was all settled in three phone calls on a Sunday morning and, best of all, GEICO had a service office in a top local body shop to make the repairs simple and easy -- even set up a rental for me. ("Premium"class because my car in a Mercedes.
The only problem I have had is with payment via credit card online. The website often displays contradictory information about my scheduled payments and I have to call to confirm. No big deal.
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