# Agent rewriting auto policy to brng premium down



## WinniWoman (Sep 8, 2015)

Well, as always, after 5 years with the same auto insurance company and despite having no claims, my premium has gone up so I am going about trying to get some other quotes. My insurance agent (new to the office) said she could rewrite my policy (cancelling the one I have) and giving me a new policy number, placing me in a different tier and bringing my insurance premium down to a level as if I was a new client. She claims the coverage will be the same.

Has anyone every hear of this? Why would insurance companies go through all this instead of just keeping long term client's rates down in the first place? I asked some other agents in other companies/brokers about this and they said they do it all the time! I never heard of this in all my years! I always just end up switching to a different insurance company. Is this something new?


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## PigsDad (Sep 8, 2015)

Never mind.


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## Passepartout (Sep 8, 2015)

I have no answers. Suspect it's like cell phone plans. They just keep adding cost to even loyal customers. I've suspected it in our insurance too. My DW has had this same insurance carrier- and agent- for longer than she's had me. House, cars, office, umbrella. I always wonder why we don't shop around. When I just happened to be at the 'official' cell phone store, I asked casually if there were any discounts or perks I could take advantage of. They looked at our usage (we have a share plan), and with a few key strokes, we got more data per month, carry over to subsequent months, and lower cost. They sure as heck were not going to offer it upfront- or have some 'genius' computer send me an email telling be they had a cheaper/better plan. You have to do it yourself.

Jim


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## Sugarcubesea (Sep 8, 2015)

Every Year in October, I do an analysis of my car and home owners insurance.  Most years, I switch companies because I end up saving at least $700. 

Last year I switched from AAA to Progressive and I saved $2,100 by moving both my car and homeowners insurance over to them...

It pays (you) to shop around


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## WinniWoman (Sep 8, 2015)

I used to work for a Health Insurance Company in commercial lines selling it to companies, so I know a little about insurance in general. You always should shop rates after about 5 years for the very reason I stated- they will always go up and it will always pay to switch, saving several hundred dollars per year (just like all their commercials claim). Bundling does not necessarily save you any money- especially in the long run- it's a marketing ploy. I have Allstate right now for auto and umbrella and Progressive for homeowners. So far shopping around, Progressive will give me the best total rates if I add the auto and umbrella. If Allstate rewrites me, then they will be overall just $200 more per year on the umbrella policy, which I could always go to Progressive for when the renewal comes up with Allstate for that. I just never knew that rewriting was possible and not sure if there are any caveats to that. You might be surprised that many times the agents don't even know if there are any differences- or- if they do know- they won't tell you as they will want the commission on the rewrite or the renewal, of course.

Some of the companies I shopped- or had brokers shop- were outrageously expensive for either or both the auto and homeowners- some almost 3X the premiums I am already paying!! And- we have no claims and perfect credit, etc.


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## Iggyearl (Sep 8, 2015)

*It happened to me this year.*

I don't own a timeshare, but I can contribute on this one.  I have been with Travelers (independent agent) for 8 years.  Premiums for 3 cars went up 7% this year to $1504.  I called my service rep, and said that I would be shopping for a lower premium.  She said, "You don't want to go jumping around just to save a few pennies."  I responded that "business is business" and I looked last year with one company (State Farm) and did not find a better price. This year might be different - especially since my homeowners is not with the same insurer. (for good reason)

I searched one independent agent, and 3 direct writers.  All were slightly lower than Travelers on the auto.  I called back my agent to see what happened with her inquiry to Travelers.  Lo and behold:  if I will pay the complete year (instead of semi-annually) my rate will go down to $915.  Exact same coverage!!  She said it was due to the "Quantum Program."  Whatever.....

I confirmed this situation with a golfing friend who is a regional manager with Travelers.  He said that they could vary rates by age, driving record, credit score, and other variables.  If they want to keep you, they will make an attempt - especially if they have had you as a client for years.  I'm still in awe of the situation - because I had to ask...... What if I didn't?


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## WinniWoman (Sep 8, 2015)

The other thing is it is important to go line by line on the policy. Agents are quick to add stuff in you might not want to pay for and they add up- like towing, car rental, additional uninsured motorist or additional medical payments, etc. I always tell them to take that stuff out and it does make a big difference.One thing I do know is if the agent rewrites our auto policy she will be increasing the coverage to $250,000/$500,000 instead of the $100,000/$300,000 we have now because that will be required for the umbrella policy. The one I have currently was grandfathered in supposedly, but the limits are different now. 

They have got you coming and going. My head hurts.....


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## WinniWoman (Sep 8, 2015)

Iggyearl said:


> I don't own a timeshare, but I can contribute on this one.  I have been with Travelers (independent agent) for 8 years.  Premiums for 3 cars went up 7% this year to $1504.  I called my service rep, and said that I would be shopping for a lower premium.  She said, "You don't want to go jumping around just to save a few pennies."  I responded that "business is business" and I looked last year with one company (State Farm) and did not find a better price. This year might be different - especially since my homeowners is not with the same insurer. (for good reason)
> 
> I searched one independent agent, and 3 direct writers.  All were slightly lower than Travelers on the auto.  I called back my agent to see what happened with her inquiry to Travelers.  Lo and behold:  if I will pay the complete year (instead of semi-annually) my rate will go down to $915.  Exact same coverage!!  She said it was due to the "Quantum Program."  Whatever.....
> 
> I confirmed this situation with a golfing friend who is a regional manager with Travelers.  He said that they could vary rates by age, driving record, credit score, and other variables.  If they want to keep you, they will make an attempt - especially if they have had you as a client for years.  I'm still in awe of the situation - because I had to ask...... What if I didn't?



Exactly. I have 3 cars as well and in fact my premium renewal is $901 for 6 months (NY), which is a $47 increase form the last period. They do not have a yearly- I do not think- but I will ask.I always pay in full on a credit card- do everything on-line (another discount), etc. However, when the agent rewrites me it will be $794 every 6 months.

Insurance is all a big scam......I don't have Allstate for homeowners because a few years ago- after 30+ years with them and no claims- they decided the firehouse was too far from our home (8 miles). Didn't matter that there is a secondary firehouse 2 miles from here and another firehouse 6 miles from here. If the main firehouse is more than 5 miles- forget it. I had never heard of such a thing! This forced me to go to Progressive who didn't question that. Now- in my search for homeowners this week to bundle with the auto- 3 companies already rejected us based on that and one company through another broker decided that the 6 mile firehouse was our main firehouse- even though it isn't!! It is all crazy town!


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## ronparise (Sep 8, 2015)

Insurance companies often have a "special" rate for new customers

I know that this was the case with health insurance.  Sign up and get the low introductory "teaser" rate. after the first year rates would go up. So as long as you didnt have any serious claims, you could find another company offering their "teaser" rate, and switch. Since independent agents usually represented several companies. You could stay with the same agent. they got a new commission and you got a cheaper rate it was a win/win

I bet its the same thing with car insurance.


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## Ken555 (Sep 8, 2015)

I fired my agent earlier this year for auto and went with Geico. I compared multiple quotes (all with similar, or identical, coverage). Geico was the least by a significant amount, and included an umbrella for just $15/year (by discounting the auto if I had an umbrella) and since I needed to renew my umbrella anyway it made sense. At the end of the day, I'm saving about $700 per year with this change. 

By the way, there is a Geico shareholders discount available. I don't own any but it's a nice benefit for those that qualify (in some circumstances it won't be better than other discounts, such as ones I qualified for).


Sent from my iPad


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## mrsstats (Sep 8, 2015)

Travelers does have a new program called Quantum 2.  I work for an independent agent.  In our agency we get an alert on our management system if the increase in premium is more than 10%.  At that point we remarket the insurance.  We quote it with our other carriers.  Sometime we come up with a better price, sometimes not.  

In NY the rates are approved by the state.  We can't just call the company and have them lower the rates.  Does not work like buying a new car.

As far as Travelers goes, in most cases I have found Q2 to be less than there current program.  However, for the agent to move you there is costing them money.  1st by the lower premium and 2nd their commission is cut by 3%.


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## WinniWoman (Sep 9, 2015)

Ken555 said:


> I fired my agent earlier this year for auto and went with Geico. I compared multiple quotes (all with similar, or identical, coverage). Geico was the least by a significant amount, and included an umbrella for just $15/year (by discounting the auto if I had an umbrella) and since I needed to renew my umbrella anyway it made sense. At the end of the day, I'm saving about $700 per year with this change.
> 
> By the way, there is a Geico shareholders discount available. I don't own any but it's a nice benefit for those that qualify (in some circumstances it won't be better than other discounts, such as ones I qualified for).
> 
> ...



$15 per year for an Umbrella Policy? Never heard of such a thing. The cheapest million dollar policy I have had quoted in a bundle was about $160.


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## Ken555 (Sep 9, 2015)

mpumilia said:


> $15 per year for an Umbrella Policy? Never heard of such a thing. The cheapest million dollar policy I have had quoted in a bundle was about $160.




Once again, in context, the net cost for the umbrella was $15 since the auto was discounted if I had an umbrella with Geico. 


Sent from my iPad


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## presley (Sep 9, 2015)

I had similar thing with Wawanesa this year. My youngest got a license and our renewal rates went through the roof. I called in to reduce coverage and the person I spoke to was able to rewrite something (all she did was change the primary car of the new driver) and it lowered our rate about $700. for the year. I still shopped around and didn't find better rates anywhere else.


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## DaveNV (Sep 9, 2015)

I'm going to be shopping around soon, as I'm retiring my BMW (Yes, world, Dave does enjoy other cars than my beloved Beemers...  Not sure how or what to change my screen name on Tug if I no longer own a BMW... ?)  I'm looking to get a lower rate, as I've found my cars and homeowners insurance premiums have been steadily creeping up over the last several years.  Time to shake the tree a bit, and see what else is out there.

Having said that, I'd like to toss the name of Ameriprise Insurance into the ring. They're the company Costco offers as a perk to their members.  I've been with them for a long time, and initially they saved me a bunch with a combined auto/home policy. They've recently saved my spouse a lot with accident forgiveness we didn't even know we had until we filed a claim. If they come in competitively with other companies, I'll stay with them. If not, I'll switch to wherever the coverage fits best.  Costco loyalty is fine and dandy, but business is business. (If you're comparing companies, you may want to look into Ameriprise.  You can find them on the Costco.com page, from the Services tab under Auto & Home Insurance.)

Dave


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## WinniWoman (Sep 9, 2015)

Ken555 said:


> Once again, in context, the net cost for the umbrella was $15 since the auto was discounted if I had an umbrella with Geico.
> 
> 
> Sent from my iPad



Might not be a true umbrella policy? 

They might have just increased your liability in your auto or homeowners policy.


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## WinniWoman (Sep 9, 2015)

presley said:


> I had similar thing with Wawanesa this year. My youngest got a license and our renewal rates went through the roof. I called in to reduce coverage and the person I spoke to was able to rewrite something (all she did was change the primary car of the new driver) and it lowered our rate about $700. for the year. I still shopped around and didn't find better rates anywhere else.



Wow. Everyone here has gotten lower rates by $700! I have yet to get a quote with more than a $200 discount.


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## sue1947 (Sep 9, 2015)

mpumilia said:


> Might not be a true umbrella policy?
> 
> They might have just increased your liability in your auto or homeowners policy.



Or, based on his previous statements, his umbrella might be $165 and he saved $150 on his car insurance making the net cost = $15.


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## WinniWoman (Sep 9, 2015)

sue1947 said:


> Or, based on his previous statements, his umbrella might be $165 and he saved $150 on his car insurance making the net cost = $15.



Oh, I see. I read the post wrong. But I am still not seeing those kinds of discounts with bundling or otherwise. I got quotes fro Geico, Preferred Mutual, State Farm, Amica. In fact, it is looking like the Allstate re-write might be the best way for me to go, or- if I move my auto and umbrella to Progressive, where I have my homeowners currently,  I would save $194 per year- but might not be worth the hassle. (You have to sometimes get pics taken of your cars, paperwork and so forth.)


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## Ken555 (Sep 9, 2015)

sue1947 said:


> Or, based on his previous statements, his umbrella might be $165 and he saved $150 on his car insurance making the net cost = $15.




Yes, exactly...something like that. I could look up the exact numbers if needed, but this isn't really confusing...at least not to me. 

It's definitely a "true" umbrella...I've had one for years and require it for certain other issues. I've got way too many insurance policies...


Sent from my iPad


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## Iggyearl (Sep 9, 2015)

*Try an independent agent.....*



mpumilia said:


> Oh, I see. I read the post wrong. But I am still not seeing those kinds of discounts with bundling or otherwise. I got quotes fro Geico, Preferred Mutual, State Farm, Amica. In fact, it is looking like the Allstate re-write might be the best way for me to go, or- if I move my auto and umbrella to Progressive, where I have my homeowners currently,  I would save $157 per year- but might not be worth the hassle. (You have to sometimes get pics taken of your cars, paparework and so forth.)



The companies you mention are "direct writers."  They have only their own product to sell.  I use an agency on Western Avenue in Guilderland, who has a number of companies to choose from.  Not far from you.  An agency will shop 4 or 5 carriers to see who is lowest.  They are actually a broker for you.  You can photo copy you current coverage pages - black out the premiums - and give them a copy.  They will see what companies best fit your needs.  You can get exposure to 4-5 companies for very little work.


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## WinniWoman (Sep 9, 2015)

Iggyearl said:


> The companies you mention are "direct writers."  They have only their own product to sell.  I use an agency on Western Avenue in Guilderland, who has a number of companies to choose from.  Not far from you.  An agency will shop 4 or 5 carriers to see who is lowest.  They are actually a broker for you.  You can photo copy you current coverage pages - black out the premiums - and give them a copy.  They will see what companies best fit your needs.  You can get exposure to 4-5 companies for very little work.



Been there- done that.The independent agencies I have called and visited with so far have not had good quotes- all have been at least up to 3X my Allstate quote and even my renewal and the homeowners have been the same or more too. Only the umbrella policies were lower.  And they also are having a hard time getting me homeowners because of the fired dept. issue. I am doing better on my own- although it is taking up a lot of time.


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## Ken555 (Sep 9, 2015)

mpumilia said:


> I am doing better on my own- although it is taking up a lot of time.




Welcome to the insurance game. Insurance agents are just salespeople and many will say anything to make a sale. Non commission options such as Geico are often the lowest price (but not always). Unfortunately, it does take a ridiculous amount of time and that is the prime reason I fire agents...I've gone thru four in the last 15 years for business and personal needs, after each over promise and under deliver (when they convince me their office service will more than make up for any price increase I may find elsewhere). I've personally liked several of them (some of my business and personal policies are with a client of mine who runs an agency) but that doesn't mean they get my business by default...they need to prove they offer the best option. 

FWIW, I used to get comparison quotes annually until a few years ago. When I compared earlier this year I was shocked at the difference. I think there was another thread here about that time where I commented on my experience. I now have a standard form with my insurance requirements to send to various agents for quoting next year.


Sent from my iPad


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## WinniWoman (Sep 9, 2015)

Ken555 said:


> Welcome to the insurance game. Insurance agents are just salespeople and many will say anything to make a sale. Non commission options such as Geico are often the lowest price (but not always). Unfortunately, it does take a ridiculous amount of time and that is the prime reason I fire agents...I've gone thru four in the last 15 years for business and personal needs, after each over promise and under deliver (when they convince me their office service will more than make up for any price increase I may find elsewhere). I've personally liked several of them (some of my business and personal policies are with a client of mine who runs an agency) but that doesn't mean they get my business by default...they need to prove they offer the best option.
> 
> FWIW, I used to get comparison quotes annually until a few years ago. When I compared earlier this year I was shocked at the difference. I think there was another thread here about that time where I commented on my experience. I now have a standard form with my insurance requirements to send to various agents for quoting next year.
> 
> ...



But other insurance companies do like to see that you were with an insurance company for a certain amount of years ( like 3-5 years). I usually shop every 3-5 years, but I just haven't had the time and didn't want added stress in my life. Now I am having the opposite experience where all the quotes I am getting are essentially HIGHER for the most part than what I have. Bizarre! My husband wants me to just have Allstate rewrite the policy and keep the Umbrella with them, even though it will cost us almost $200 more per year than if we switched to Progressive. He feels it will be less hassle, although I will still have to sign up again on-line with my new policy/account number, etc. That's the decision we have to make now. I can't deal with calling any more companies and some brokers don't even call me back! I want to get ready for my exchange vacation next week! LOL!


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## mdurette (Sep 10, 2015)

I just left my insurance agent after being with them for about 25 years.    My homeowners seemed to be considerably higher and last year my umbrella that was with the same company was not renewed because of my husbands occupation.  Agent found me a new umbrella for around $550 and my homeowners was around $2,150.   Total of $2,700

I shopped - in the end found same coverage with a new umbrella for a total of $1,500.   HUGE savings.

I called my current agent and gave them the chance, sent them my quotes and asked what they could do.   They came up with a total cost of about $1800 with less coverage and higher deductibles.  I considered it, since I tend to be loyal customer and will pay more for customer service, which was always great.  But, when I asked about what would happen with my car insurance (since no longer bundled)    I switched.   

This month...I work on the cars.


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## MichaelColey (Sep 10, 2015)

Doing that also benefits the insurance agent/salesman, as their commissions are usually much higher the first year, and then a significantly lower percentage the following years.

As someone who pays far too much for insurance (with four vehicles, two trailers, a big house, and a business), I might want to check with my agent on this.


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