How to fire an Insurance Company
#1
05-17-2006, 05:14 AM
Join Date: Oct 2005
Location: Huntsville, AL
Posts: 5,613
How to fire an Insurance Company
This letter was sent to my former insurance carrier:
Dear Bill,
Although this letter is addressed to you, it is really for your company, Allstate. We have always enjoyed the service from your office and Sue is a gem. But since the accident last September, we have had no choice but to switch our auto insurance to Travelers and this letter explains why.
After the low-speed accident, caused by a third reckless driver forcing another driver to stop on a blind exit ramp, I drove my damaged Camry to work and later to the claim center. The left front was crumpled and left head light out but the engine, transmission and steering was OK and serviceable. Although the repair estimate, ~$2,900 seemed a little high, what surprised me was not having the option of getting the car repaired, at all.
I did not mind that the Blue Book value would not cover the repairs but pulling the title and hauling the car to Birmingham for disposal really bothered me. It was a fine, reliable car that in spite of the 180,000+ miles was still giving me 32 MPH in my daily commute. I would have added the money needed to cover the vehicle repair and given up collision coverage in the future. Instead, the vehicle was seized.
To have this vehicle seizure blamed on Alabama State law in a state that has no annual vehicle safety inspection really was insulting. Other than lacking a business cards, our legislature answers only to Alabama corporations and this seizure of my car without the option of owner-funded repair is just wrong. This made me resentful but it led to me getting a used, hybrid-electric Prius.
In October, we got the bill for the next six months and found “Your premium for the current policy period has been increased by a total of $540.55.” This is a little more than 1/3 the $1,300 paid on the Camry as if the previous collision premiums didn’t count. In 18 months, this premium increase alone will more than cover the Camry settlement. Some increase due to the fact my Prius had only 50,000 miles would be expected but this rate increase put too low of a value on the additional handling and safety features of the Prius. Worse, it ignores the indirect Prius safety that comes with driving for fuel efficiency.
It is cheaper for me to drive my Prius using the most direct city route and speeds than the longer, higher speed route I used with my Camry. Instead of taking 13 miles and 20 minutes, I now take 9.8 miles and 25 minutes to get better than 50 MPG. On the highway, I drive no faster than 70 mph, which again gives me better than 50 MPG. With rare exception, I don’t use the high-speed Parkway lanes but drive the access road in the right hand lane. I anticipate lights and only change lanes to let tailgaters who won’t pass speed down the road for that right turn they were so anxious to make. Because of the Prius, I have become a much safer driver . . . a fact that seems to have escaped Allstate’s notice.
In January, Travelers announced a hybrid discount, the first in the nation. I asked an independent agent to work up a quote and he gave me four options. Even though Travelers was not the lowest bid, I gave them our business because they recognized the value of a hybrid-electric vehicle. It is the right policy for not only from reduced risk but also the direct and indirect benefits to our nation by reducing our ‘oil addiction.’
I will miss the national reach and infrastructure of Allstate. You and Sue have been terrific agents and always professional and helpful. But I will not miss the steep policy rate increase nor will I continue collision coverage with any carrier after our vehicle Blue Book value reaches a range I feel comfortable covering on my own.
Feel free to share my letter. Perhaps it is cheaper for Allstate to find new customers than keeping the long established ones they have. But the Allstate advertisements about deductible forgiveness suggests otherwise.
Bob Wilson
Dear Bill,
Although this letter is addressed to you, it is really for your company, Allstate. We have always enjoyed the service from your office and Sue is a gem. But since the accident last September, we have had no choice but to switch our auto insurance to Travelers and this letter explains why.
After the low-speed accident, caused by a third reckless driver forcing another driver to stop on a blind exit ramp, I drove my damaged Camry to work and later to the claim center. The left front was crumpled and left head light out but the engine, transmission and steering was OK and serviceable. Although the repair estimate, ~$2,900 seemed a little high, what surprised me was not having the option of getting the car repaired, at all.
I did not mind that the Blue Book value would not cover the repairs but pulling the title and hauling the car to Birmingham for disposal really bothered me. It was a fine, reliable car that in spite of the 180,000+ miles was still giving me 32 MPH in my daily commute. I would have added the money needed to cover the vehicle repair and given up collision coverage in the future. Instead, the vehicle was seized.
To have this vehicle seizure blamed on Alabama State law in a state that has no annual vehicle safety inspection really was insulting. Other than lacking a business cards, our legislature answers only to Alabama corporations and this seizure of my car without the option of owner-funded repair is just wrong. This made me resentful but it led to me getting a used, hybrid-electric Prius.
In October, we got the bill for the next six months and found “Your premium for the current policy period has been increased by a total of $540.55.” This is a little more than 1/3 the $1,300 paid on the Camry as if the previous collision premiums didn’t count. In 18 months, this premium increase alone will more than cover the Camry settlement. Some increase due to the fact my Prius had only 50,000 miles would be expected but this rate increase put too low of a value on the additional handling and safety features of the Prius. Worse, it ignores the indirect Prius safety that comes with driving for fuel efficiency.
It is cheaper for me to drive my Prius using the most direct city route and speeds than the longer, higher speed route I used with my Camry. Instead of taking 13 miles and 20 minutes, I now take 9.8 miles and 25 minutes to get better than 50 MPG. On the highway, I drive no faster than 70 mph, which again gives me better than 50 MPG. With rare exception, I don’t use the high-speed Parkway lanes but drive the access road in the right hand lane. I anticipate lights and only change lanes to let tailgaters who won’t pass speed down the road for that right turn they were so anxious to make. Because of the Prius, I have become a much safer driver . . . a fact that seems to have escaped Allstate’s notice.
In January, Travelers announced a hybrid discount, the first in the nation. I asked an independent agent to work up a quote and he gave me four options. Even though Travelers was not the lowest bid, I gave them our business because they recognized the value of a hybrid-electric vehicle. It is the right policy for not only from reduced risk but also the direct and indirect benefits to our nation by reducing our ‘oil addiction.’
I will miss the national reach and infrastructure of Allstate. You and Sue have been terrific agents and always professional and helpful. But I will not miss the steep policy rate increase nor will I continue collision coverage with any carrier after our vehicle Blue Book value reaches a range I feel comfortable covering on my own.
Feel free to share my letter. Perhaps it is cheaper for Allstate to find new customers than keeping the long established ones they have. But the Allstate advertisements about deductible forgiveness suggests otherwise.
Bob Wilson
#3
05-17-2006, 11:02 AM
Re: How to fire an Insurance Company
Good letter.
FYI, from http://www.revenue.alabama.gov/motorvehicle/pdf/stfarm.pdf :
"According to Alabama law, Section 32-8-87(d), Code of Alabama 1975:
"[A] total loss shall occur when an insurance company or any other person pays or makes other monetary settlement to a person when a vehicle is damaged and the damage to the vehicle is greater than or equal to 75 percent of the fair retail value of the vehicle prior to damage as set forth in a current edition of a nationally recognized compilation of retail values ...
"Alabama law is similar to most other states - a vehicle with a salvage title (as a result of a total loss) cannot be driven on the highways of Alabama. Further, it cannot be re-registered, and a license plate cannot be issued for the vehicle. In either case, the sale of the vehicle requires notice be given to a buyer that it is a salvage or rebuilt vehicle. This is also important for subsequent roadworthiness due to the potential liability of the seller to another consumer/owner that might be injured because of the condition of the vehicle in a subsequent accident.
"According to Alabama law, only a "licensed" rebuilder may apply for an inspection of a rebuilt (previously salvaged - total loss) vehicle."
You did not change, in any automobile insurer's "eyes", unless you moved from one classification to another because of age group change or commute distance group change (or gender change 
) -- or if an older accident got old enough to not figure into your rating any more.
Also, in general, a newer car will have higher collision and comprehensive premiums than an older car of similar class.
As you probably know, in just about every business, it is far cheaper to keep an existing customer than it is to acquire a new one. (Off the top of my head, I can't think of any business where that's not true, but I would not be surprised if someone else could.) It is definitely true for auto insurance companies.
FYI, from http://www.revenue.alabama.gov/motorvehicle/pdf/stfarm.pdf :
"According to Alabama law, Section 32-8-87(d), Code of Alabama 1975:
"[A] total loss shall occur when an insurance company or any other person pays or makes other monetary settlement to a person when a vehicle is damaged and the damage to the vehicle is greater than or equal to 75 percent of the fair retail value of the vehicle prior to damage as set forth in a current edition of a nationally recognized compilation of retail values ...
"Alabama law is similar to most other states - a vehicle with a salvage title (as a result of a total loss) cannot be driven on the highways of Alabama. Further, it cannot be re-registered, and a license plate cannot be issued for the vehicle. In either case, the sale of the vehicle requires notice be given to a buyer that it is a salvage or rebuilt vehicle. This is also important for subsequent roadworthiness due to the potential liability of the seller to another consumer/owner that might be injured because of the condition of the vehicle in a subsequent accident.
"According to Alabama law, only a "licensed" rebuilder may apply for an inspection of a rebuilt (previously salvaged - total loss) vehicle."
Because of the Prius, I have become a much safer driver . . . a fact that seems to have escaped Allstate’s notice.
) -- or if an older accident got old enough to not figure into your rating any more. Also, in general, a newer car will have higher collision and comprehensive premiums than an older car of similar class.
Perhaps it is cheaper for Allstate to find new customers than keeping the long established ones they have.
#5
05-17-2006, 07:02 PM
Join Date: Oct 2005
Location: Huntsville, AL
Posts: 5,613
Re: How to fire an Insurance Company
Originally Posted by IMAhybrid
Did you mean MPG? I hope you didn't send it with that typo.
Bob Wilson
#6
05-29-2006, 06:41 AM
Re: How to fire an Insurance Company
When I purchased my Insight, we became a 3 car family. My first Allstate bill came and the premium was so high I almost threw up. It was higher than my car payments! I asked a friend who had 3 similar cars what she paid and i almost fell off my chair. To make a long story short, I switched to Geico which was HALF of what Allstate was! HALF!!!!!!!!!!!!! I got sick thinking i should have done it earlier, but better now than never.
#7
05-29-2006, 06:50 AM
Re: How to fire an Insurance Company
I had Am Fam when I got in my accident and while the other driver was a fault, when I asked my representative for assistance and he basically said no (after 10 years of being with him andd never asking for a singe thing).
When the accident was over and I bought my '06 HCH I called and asked what my insurance rates would do (previous rate was $120/mo), they told me that because I had a ticket that was old enough to be removed, my rates would go down to $110/mo. I was thrilled...until I got my bill, it went up to $139/mo. That sure got me looking for other alternatives (especially since my guy was unwilling to assist me when I needed it), I ended up going to Travelers also. I now have better coverage and my rate is at $88/mo. YEAH
When the accident was over and I bought my '06 HCH I called and asked what my insurance rates would do (previous rate was $120/mo), they told me that because I had a ticket that was old enough to be removed, my rates would go down to $110/mo. I was thrilled...until I got my bill, it went up to $139/mo. That sure got me looking for other alternatives (especially since my guy was unwilling to assist me when I needed it), I ended up going to Travelers also. I now have better coverage and my rate is at $88/mo. YEAH
#8
05-29-2006, 06:55 AM
Re: How to fire an Insurance Company
I left Allstate for Progressive when Allstate didn't want to show up at my accident; they wanted to "wait for the police report". Progressive comes to the accident site and handles everything for you. I added my car to my girlfriend's (now my wife's) account and the average price went down.
I just bought an 06 Prius, and of course I called Progressive to get an estimate on the premium. Turns out that going from a 99 Honda Prelude to the Prius saves us $48 every six months. Yes, it's a newer car, but it's a safer car. Progressive doesn't offer hybrid discounts yet, but at least they recognize the safety value of all those airbags.
I just bought an 06 Prius, and of course I called Progressive to get an estimate on the premium. Turns out that going from a 99 Honda Prelude to the Prius saves us $48 every six months. Yes, it's a newer car, but it's a safer car. Progressive doesn't offer hybrid discounts yet, but at least they recognize the safety value of all those airbags.
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