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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

#161

Post by perl4ever »

prostheticvamp wrote: post #136
hnburnsy wrote: post #133

Earlier quoted context omitted.

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.

Geico seems to do a good job at auto insurance. But like everybody, they try to get you to also sign up for other insurance, and it appears all other insurance under their banner is actually from random other companies that aren't run by them or seamlessly integrated with their systems. And furthermore, their partners seem to be only interested in the association so they can overcharge, more than making up for any multi-line discount.

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

#162

Post by perl4ever »

pnutjam wrote: post #110
three_seagrass wrote: post #92

Earlier quoted context omitted.

Recently filed a collision claim with USAA. They undershot the original estimate but had no issues paying the full amount for repairs when getting the quote.

They refused to replace car seats for me when a USAA member hit me.

I was hit in a chain reaction collision started by a USAA member. No particular problem with them paying, but I chose subrogation.

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

#163

Post by perl4ever »

sizzle wrote: post #149
hnburnsy wrote: post #137

Earlier quoted context omitted.

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

Do you just let the customer rep know?

Probably a joke from a bored Allstate agent.

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

#164

Post by perl4ever »

astura wrote: post #33
inetknght wrote: post #31

Earlier quoted context omitted.

I've been with State Farm for over a decade in Texas. While I agree that I should have spent a hell of a lot more time shopping around, I'll also admit that I have _no idea_ how a lot of insurance works and frankly I don't care to spend that mental budget to learn to game it. My insurance rates are affordable to me and have only ever gone _down_ over the past decade. It even went down after having a collision and cla…

The GP is not suggesting that anyone "game" insurance rates, just that one should get a couple quotes after a several years to make sure you aren't being price gouged for being a loyal customer. It's free, takes less than a half hour, and there's no obligation to purchase anything, it's just a quote.

People get mad if their rates go up for no reason. Geico appears to have a rather clever (perhaps obvious) algorithm - it seems like after a few years, they start raising your rate when you make any change to your policy, no matter what it is. So they aren't jacking up your rate at random times, but it's always ratcheting up.

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

#165

Post by perl4ever »

Ididntdothis wrote: post #80
Mountain_Skies wrote: post #73

Earlier quoted context omitted.

Had the exact same experience back in December with an Echo Flex. I saw a good price, knew my roommate wanted one, so I went downstairs to let him know. His price was $10 higher even though he has Prime and I do not. Same address. The only difference I could think of was that he is a heavy user of multiple Echo devices while I own one that's in its box in a closet. He probably spends at least ten times as much annual…

I guess amazon views prime users as suckers who will pay more.

...for shipping. Free shipping costs $10.

I wanted to order something the other day that should be in a local store, but wasn't, and random specialty websites had stuff for $20 plus shipping. So I found something equivalent on Amazon for $8, and when they pestered me about signing up for Prime to get free shipping, I did it and then set a calendar reminder for a week later to cancel it after I got my order. This sort of game could well make people working at Amazon feel justified in manipulating customers, but there doesn't seem to be any choice except to play the game everybody is.

Random things on Amazon that I consider buying are often double or triple the price they should be, so I try to buy anywhere else if at all possible these days.

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

#166

Post by [deleted] »

chrisplotz wrote: post #131
toomuchtodo wrote: post #22

Earlier quoted context omitted.

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…

[deleted]

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

#167

Post by phlox »

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.

Yes, and you can shop easier by just uploading your current declarations page PDF or linking your account at gabi.com. Most people don't know they are overpaying. [Disclosure: I work there]
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