I’ve been with Geico for as long as I can remember. I recently noticed an ad in Newsweek that showed a man with an alligator propped on his shoulder and the caption reads:
My policy is up for renewal in a few weeks, so I’ve been shopping around to see if I could get a better rate. The lowest rate I have been able to find is more than double my rate with Geico (one was more than triple). I’ve had four claims with them over the past 5 years (all no-fault or vandalism related) and in every case they have provided me with what I consider exemplary service, in some cases offering to have somebody come out to look at my car the same day in case in the event that the car wasn’t driveable. I thought it was normal for rates rates to go up whether you were at fault or not, but even with these four claims, my rates have gone down every year because they still consider me a good driver.
I really feel like I’m riding first class on the auto insurance airline, so to speak. So what am I missing because I don’t have an agent? The alligator wrestler in the State Farm ad makes it sound like auto insurance with no agent is pure unadulterated hell. As I see it, agents keep business hours so they wouldn’t be there if you had an accident at 3:00 in the morning (Geico is ready 24/7). An agent needs to be paid, and therefore must necessarily add to the cost of your coverage.
To the extent that car insurance is a “commodity” and for drivers with good driving records (GEICO DIRECT’s cherry picked speciality) it often is, you can get good service with a non-agent issued policy. If you are a less careful driver or have kids with bad driving habits you may well need an agent to get any kind of policy.
I still can’t figure out who’s insuring the 18 year olds I see buzzing around on the 1000cc Japanese “Ninja” bikes. The insurance payments have got to be more than the bike payments.
An insurance agent is to sell insurance (and to jazz up its price), s/he does NOT process accidents/claims. If you are smart enough, find a company which sells directly, such as GEICO. It will be cheaper or the service will be better.
One thing that an insurance agent does is help you apply. This is a real convenience, although the extra money is probably not worth it.
My SO got car insurance through a state farm agent, and they ask you questions, and enter your answers into the computer system and explain what they are asking. Also, they did the “insurance inspection” right at the state farm office.
By contrast, I got insurance through a geico-like company. It was a royal pain in the &$$ deciphering and filling out the 10 pages of forms; going to the next town to get my car inspected; getting the paperwork together, etc. But it was phenomenally less expensive.
Another convenient thing about State Farm was that they gave my SO insurance right away. By contrast, I was given one week’s temporary insurance by my dealer; another 2 weeks from an affiliate of the geico-like company, and finally from my insurer. This multiplied the paperwork considerably.
At the end of the day, I’m glad that I went through all the trouble, but I’m not surprised that some people don’t bother.
Yes, I agree that it’s better to be rich and have the insurance agent to fill all the papers, inspect the car, etc. If you offer him enough, he will drive you around, too. With GEICO you have to do more yourself, but self-service is always cheaper.
In general, it’s better to have a chauffeur and have him to take care of the insurance and other monkey business.
Basically, an insurance agent helps you evaluate your needs and find the right product to meet your needs. Many insurance companies have employees that are licensed to sell insurance, just like an insurance agent is, and they perform the same function. An independent broker/agent represents several different companies and will find you the best product and the best price from among many different insurers.
What they said. I actually prefer dealing with an agent. Becky has always handled everything for me very promptly. I’ve never once had a problem with them(I use State Farm by the way). I did call up Geico a couple of months ago, but they were going to charge me almost 6 times what I’m currently paying. I’ve had 2 wrecks since I started driving, and the most recent one was in '98. Those guys are picky.
I used to think that State Farm Agents were way cool. They would give out their home phone number and you could call them anytime, day or night. They would always work with you to help you on any claim or loss.
Now, State Farm Agents don’t give out their home phone numbers any longer (at least my agent here doesn’t). Instead you call his number after hours and get transferred to the great big State Farm voice mail, or the claims service.
Two weeks ago I hit a deer with my car. My State Farm agent had absolutely nothing to do with my claim. He couldn’t even help me find a local rental car. The claim rep handled everything. Any insurance company could have handled my claim just as effectively (if not more) than State Farm.
I am going to look into other insurance companies. Giving a thought to looking at Progressive.
I have my agent’s home phone number, but my whole family has been using her for like 10 years. That may have something to do with it. She started off as our agent, then started ending up at our Christams parties. I’m not sure if they still do, or not.
USAA is very good…they also use no agents, have lower prices than just about anyone, and have handled my claims with efficiency and alacrity.
Just one catch, though. You have to be connected with the
armed services in some way. They used to take current and retired commissioned officers only (active or reserves), and
their spouses, dependents, and former dependents. My father was a medical officer in the Korean War, hence I have a lifetime privilege of patronizing this company. This privilege has, so to speak, descended further to my wife and step daughter.
USAA now accepts enlisted personnel as well, but I don’t know if their families enjoy the same generous rights of “inheritance” as those of the officers.
I recently shopped Geico and 20th Century, and found that USAA was WAY less expensive.