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How Allstate’s auto insurance algorithm squeezes big spenders

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Re: How Allstate’s auto insurance algorithm squeezes big spenders

#131

Post by chrisplotz »

toomuchtodo wrote: post #22
exhilaration wrote: post #15

The best thing you can do is shop for auto insurance every year or two. The longer you stay with a particular company the more likely they are to very slowly and carefully hit you with small rate increases until you're paying far more than their competitors will charge you. Insurance companies understand and exploit consumer behavior better than even the best marketers.

I want a product like policygenius.com, but instead of life insurance they have my entire insurance portfolio (auto, home, renters, umbrella, personal property) and constantly price shop for me automatically as a broker between me and every major insurer. I would also like such a product to be structured so that they can never be bought by Intuit or another incumbent, preferably in some sort of employee owned coop mu…

I have a lot of sympathy for this feeling - I am a USAA member, but through family, nothing I did. I feel fortunate that I qualify. My cofounder and I are trying to build a company a lot like you describe to bring "USAA style" to more people. We just did our launch HN last week (Goodcover). It's renters only right now so won't do exactly what you describe, but just wanted to say I totally get where you're coming from.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#132

Post by bradlys »

tus88 wrote: post #54

> paying $3,750 every six months, was instead being charged twice that, more than $7,500 How on earth does someone pay that much on INSURANCE?!?

Exotic cars (they don't have to be expensive exotics - just something there isn't a lot of data on) + motorcycles can easily shove that figure up there. Add speeding tickets, claims, DUI, and/or crashes - you're gonna raked over the coals.

When I was looking at buying a superbike, to get full coverage - it would be $1000/month. Clean record - but 22-23. Just liability with high deductibles was around $200-300/month. I've since become older - so it's cheaper for full coverage.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#133

Post by hnburnsy »

frayesto wrote: post #42
RHSeeger wrote: post #35

Earlier quoted context omitted.

I have USAA and can't say enough good things about them. Whenever I call them, they're there to walk through whatever I need with me. The first thing they ask is if everyone is ok; it's trivial, but means something. In general, their rates are really good; it used to be that, when other companies called, you could tell them you have USAA and they're acknowledge they can't match the rates and hang up. Admittedly, not…

Another USAA member here. I haven't had to do an auto claim yet, besides simple windshields, but have had several property claims. They have been great. In fact, right now USAA is in the subrogation process against the offending party for a claim on a bicycle. I've been happy with their insurance products, their even better customer service, and have no plans of changing.

Counterpoint, had USAA auto for 20+ years, added 2 young drivers and premiums went up 4200 per year. Switched to Geico and recouped 2700 of that.

Always shop around.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#134

Post by chrisplotz »

RHSeeger wrote: post #35
exhilaration wrote: post #15

The best thing you can do is shop for auto insurance every year or two. The longer you stay with a particular company the more likely they are to very slowly and carefully hit you with small rate increases until you're paying far more than their competitors will charge you. Insurance companies understand and exploit consumer behavior better than even the best marketers.

I have USAA and can't say enough good things about them. Whenever I call them, they're there to walk through whatever I need with me. The first thing they ask is if everyone is ok; it's trivial, but means something. In general, their rates are really good; it used to be that, when other companies called, you could tell them you have USAA and they're acknowledge they can't match the rates and hang up. Admittedly, not…

> when other companies called, you could tell them you have USAA and they're acknowledge they can't match the rates

This is funny, I actually do say this. I co-founded Goodcover, we provide renters insurance and USAA is an inspiration. But we still have a really hard time beating them! I'm also a USAA Member (car insurance) and also can't say enough good things about them.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#135

Post by astura »

bradfa wrote: post #50
unlinked_dll wrote: post #28

Earlier quoted context omitted.

State Farm has only ever reduced my rate. They do it about once a year. I have shopped around and changing policies would cost be upwards of $50/month more than I currently pay. Granted the best thing you can do for low auto insurance rates is to barely drive. Personally I drive less than 5k miles a year, and my rate reflects that.

Similarly, I've been with GEICO for over a decade now for my car and homeowner's insurance. GEICO is just a homeowner's broker in New York, Liberty Mutual actually insures my house. I shop every year or two and I've never been able to find a better deal than I already have for comparable coverage, even directly quoting through Liberty Mutual. Regardless, my GIECO rates have been consistently going up these past few y…

I have to say, I was impressed with my GEICO claims experience.

A GEICO customer hit my car, entirely her fault, so I just went through her insurance, didn't even notify mine. GEICO was extremely helpful, polite, and prompt and I wasn't even their customer. I opted to use their "full service claims center" which was located at [local reputable body shop/dealership]. I showed up with my car, they had a loaner ready for me up front ready to go with the keys in the ignition and the loaner car was very nice (just a family sedan but a nicer one). The whole process was just very straightforward and easy.

Several years later my car was hit by a State Farm customer, entirely their fault, I went through their insurance again. That whole experience was just shit. First they were disorganized and unhelpful. I decided to use their "full service claim center" since my GEICO experience was so good. The place they sent me to was out of the way and somewhere I wasn't familiar with. When I arrived it was some shady looking dumpy body shop. [I almost walked away then, wish I did]. Clerk didn't seem to be expecting me and wasn't prepared, even though I had an appointment to drop off the car and nobody else was there, so I had to fill out paperwork because State Farm didn't send over my information, I guess. After that I had to wait forever for Enterprise to pick me up (so "full service" means that the clerk will make a phone call). Then at Enterprise I had to stand in line and fill out more paperwork. They gave me a Fiat 500, which doesn't have a full back seat and at some point I had two passengers who couldn't fit into the back seat. After they finished the body work they literally didn't put the wheel back on right and it was a couple inches from falling off my car while I was driving. My usual mechanic was shocked.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#136

Post by prostheticvamp »

hnburnsy wrote: post #133
frayesto wrote: post #42

Earlier quoted context omitted.

Another USAA member here. I haven't had to do an auto claim yet, besides simple windshields, but have had several property claims. They have been great. In fact, right now USAA is in the subrogation process against the offending party for a claim on a bicycle. I've been happy with their insurance products, their even better customer service, and have no plans of changing.

Counterpoint, had USAA auto for 20+ years, added 2 young drivers and premiums went up 4200 per year. Switched to Geico and recouped 2700 of that. Always shop around.

Geico is so huge I expected their customer service to be an absolute shitshow. Then I totaled my car, and they were actually helpful and easy to work with. I remain shocked to this day, and I’m still 90% convinced it was a fluke.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#137

Post by hnburnsy »

hnburnsy wrote: post #133
frayesto wrote: post #42

Earlier quoted context omitted.

Another USAA member here. I haven't had to do an auto claim yet, besides simple windshields, but have had several property claims. They have been great. In fact, right now USAA is in the subrogation process against the offending party for a claim on a bicycle. I've been happy with their insurance products, their even better customer service, and have no plans of changing.

Counterpoint, had USAA auto for 20+ years, added 2 young drivers and premiums went up 4200 per year. Switched to Geico and recouped 2700 of that. Always shop around.

Tip, Geico will give you an 8 percent discount for owning shares of Berkshire Hathaway.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#138

Post by hnburnsy »

alkonaut wrote: post #128
Edman274 wrote: post #75

Earlier quoted context omitted.

Almost all state governments made it so that you can't drive a car unless you have insurance. The reason they did this is so that if you hit someone and cause physical injury to them or to their property, it's possible to pay them for the damage you did to them. The government has decided that it is a good idea to make sure that people generally have a way of getting money from people that have caused accidents. We'v…

A simple minimum insurance (liability only) is around $150/y almost regardless of vehicle here while a full insurance (theft, damage, ...) is 10x that and obviously can be a lot more expensive than that if the car is expensive. I wouldn’t even shop around if only buying the liability insurance because it costs like 2 tanks of gas anyway.

See how much young drivers on a 1 million/1 million liability policy cost. Always shop around.

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#139

Post by SilasX »

jmcqk6 wrote: post #86
ikeboy wrote: post #82

Earlier quoted context omitted.

1. I'm perfectly fine with mandatory liability insurance. Requiring assurance that someone can pay for any damage they do before granting them access to our roads is fine. 2. "state governments have also determined that it's in our collective best interest to not allow for bad behavior by insurers in overcharging drivers for things not directly related to risk." This doesn't follow. You need to argue for a market fai…

You're acting like the parent you're responding to was making an argument for something, instead of describing the current reality.

Gotcha -- so it wasn't even trying to answer the prompt, and was just block of text that doesn't contribute to the discussion. Flagging, then. (not really, just saying ... keep your eye on the ball, commenters)

Re: How Allstate’s auto insurance algorithm squeezes big spenders

#140

Post by SamReidHughes »

wpietri wrote: post #61
Johnny555 wrote: post #34

I stopped using Allstate years ago -- I mentioned to my agent (this was back when it was still common to actually go see an agent in person to get insurance) that I had a chip in my windshield from a rock and I had to pay to fix it. He said "No, don't pay for it, just make a claim and we'll pay for it no deductable for glass fix since we want you to have a clear windshield". So I made the claim. Then made 2 more clai…

I think high deductibles are an excellent choice for those of us who do well financially. I do that myself. But I should note that 40% of Americans can't handle sudden a $400 expense, so it doesn't work well for everybody: https://www.cbsnews.com/news/nearly-40-of-americans-cant-cov...

At low income, what makes sense is to get a cheaper used car. Bam, you've got $1k for an emergency car expense. That $400 stat, if it can be believed, spans from no income up nearly to median income.
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