topic Re: Insurance Discounts in Community Chat

Insurance Discounts

Desert Lily — Tue, 20 Jul 2021 21:45:15 GMT

I've had the same insurance company since I was in college after high school 40 years ago. Because I sold my house and am currently building a new house, I'm renting (my own house, actually). So I went from a Homeowners policy to a Renters policy.

My premium on my Auto insurance has now jumped by $210/year because I switched to Renters insurance temporarily. I still have multi lines of insurance with the same company, but the Auto discount shrank with the onset of a Renters policy rather than a Homeowners. A company rep explained that to me.

For 15 months during the pandemic, I drove less than 20 miles in total. There was a discount during the 1st 3 months only. I retired during the pandemic but my office was less than 3 miles from home, so I have less than 5,000 miles on my 3-year old car.

The insurance rep said that I could possibly get an Auto insurance discount if I let the company install a "beacon" that would track my driving. The State Farm agent called it "The Drive Safe & Save app." That "beacon" feels like an infringement on my privacy and completely discouraged me from seeking a further discount. (I realize there are services like ONSTAR that can be helpful, but this "beacon" is different.)

But, the whole scenario may encourage me to seek out a new insurance company after all these years.

Re: Insurance Discounts

On It — Tue, 20 Jul 2021 21:57:50 GMT

@Desert Lily I am very concerned about these devices. We already have way too much personal information out there. I would be hesitant to install one on my car. I don't want Alexa watching me sleep either. Unplugged, disconnected everything I could to prevent that!

Edited to add: Ask if the discount will be reinstated when you move into your new home. Maybe you won't have to change.

Re: Insurance Discounts

KailaS — Tue, 20 Jul 2021 22:09:30 GMT

I also refused to let my company track my driving although I probably drive fewer than 25 miles a month. Except for medical appointments, I walk almost everywhere.

Re: Insurance Discounts

SeaMaiden — Tue, 20 Jul 2021 22:15:13 GMT

@Desert Lily Do not choose Farmers...no discount at all for low mileage driving...

Re: Insurance Discounts

PickyPicky3 — Tue, 20 Jul 2021 22:25:30 GMT

Insurance is regulated by state, so someone's recommendation from a different state really has little value.

You should get some quotes from other companies whether you change companies or not. Get quotes from two individual companies plus give your info to a broker to see what they can do for you.

You may be happy with what you have, or you might not. Buying insurance is like a playing a board game.

Re: Insurance Discounts

itsmagic — Tue, 20 Jul 2021 22:28:23 GMT

We used to have Allstate a few years ago and they used some sort of tracker system too. I didn’t like the idea of it either and will never get auto insurance where I have to use one.

Re: Insurance Discounts

Jordan2 — Tue, 20 Jul 2021 22:37:55 GMT

@itsmagic wrote:
We used to have Allstate a few years ago and they used some sort of tracker system too. I didn’t like the idea of it either and will never get auto insurance where I have to use one.

@itsmagic I have Allstate, they mentioned the driving tracker, they said I could save money. I told them I didn't want it, they didn't make me take it. I will be shopping for a new auto insurance company, I think Allstate is rather expensive. I'll checkout Liberty Mutual, Geico, and Progressive. I checked out State Farm, it was more expensive than Allstate.

Re: Insurance Discounts

ValuSkr — Tue, 20 Jul 2021 22:37:57 GMT

Get quotes from other companies. If you've been with the same company for 40 years, I bet you'll save a lot of $$$ by switching. The companies take advantage of people that don't shop around. They aren't loyal to you and you shouldn't be loyal to them

Re: Insurance Discounts

Meowingkitty — Tue, 20 Jul 2021 22:55:24 GMT

I started out with Allstate when I was a kid because they told me since I was young I had to stay on my parents policy until I was 25. I found out that was a lie. Fast forward, I got married and got a house and I started to shop around when Allstate lowered by premium by all of 2 cents a month. Then my homeowners insurance with them skyrocketed and when I asked why I was told I had to pay for a fire that was up north hundreds of miles away. I left and went to Amica where my premiums were half. Then they started to raise my rates and I am now with The Hartford. Good rates for both homeowner and 2 cars. It pays to shop around.

Re: Insurance Discounts

patbz — Tue, 20 Jul 2021 22:56:23 GMT

I've had same insurance company for forty years as well and I don't foresee ever switching. My company is USAA and my family and I really feel its the best ( its always highly rated for homeowners and auto).

Re: Insurance Discounts

PickyPicky3 — Tue, 20 Jul 2021 22:57:28 GMT

@ValuSkr - I completely agree with you. Once when I was shopping my insurance, a company agent said he was giving me a 15% (!) "loyalty" discount. Loyalty? I had never been their customer.

He explained, "You stayed with your last insurer for five years. That's loyalty. We're willing to pay a lot to get someone like you as a customer."

Re: Insurance Discounts

jlkz — Tue, 20 Jul 2021 23:02:04 GMT

@PickyPicky3 @DesertLily

Picky's advice to get a broker is excellent ! They work with all insurance companies and are in a better position to get you insurance with the least expensive company.

Our broker has saved us quite a lot over the years !

Re: Insurance Discounts

decaf — Tue, 20 Jul 2021 23:25:19 GMT

I've noticed that you get a low rate at first, on the third year it jumps up, alot. I check around for rates with different companies every two to three years.

Re: Insurance Discounts

CrazyDaisy — Tue, 20 Jul 2021 23:30:37 GMT

The discount rate for a renters policy is much less than for homeowners. Basically you are insuring less and renters are considered "temporary", Once you finish your home and insure that your discount should return.

Those beacons are designed to determine not only the miles you drive but how you drive (speeding, reckless etc).

Re: Insurance Discounts

skatting44 — Wed, 21 Jul 2021 00:04:49 GMT

Same thing happened to a relative of mine abt 8 yrs ago who had State Farm who had a home, sold it then moved in an apartment . She to, bought renters insurance and had auto insurance. She was told her auto rate when up so much because she moved to Baltimore which has a high crime rate.

Re: Insurance Discounts

RedTop — Wed, 21 Jul 2021 01:40:18 GMT

@Desert Lily

I would not be so quick to leave State Farm after 40 years. I have been with this company for 48 years and have ALWAYS been treated well.

My mother made a huge mistake in leaving State Farm after my dad passed, and she sold one vehicle. Instead of listening to me, she listened to my brother who is all about finding a cheaper way, which eventually wasn't.

What you have described as far as losing your multi-line discount after selling your home, makes perfect sense to me. Your discount will be reapplied once you move into the new house, and your auto insurance will be lowered. It's a temporary thing.

State Farm sent mileage verification forms to my husband and I every 3 months for a full 18 months, which we turned in to our local agent. It became a bit aggravating, so the last time we took the forms in, an employee came out to visually verify the mileage on my SUV, and said she would add a note, which apparently did something because we have not had to verify mileage on either vehicle for over a year.

I too would not agree to installing any type of tracking device, but even this would not prompt me to think of leaving this company.

Re: Insurance Discounts

Mary Bailey — Wed, 21 Jul 2021 02:03:49 GMT

No way we will ever have a tracking device on our car for insurance.

I feel it's to raise premiums not to give a discount

How do you dispute any driving that they want to raise your premium?

Re: Insurance Discounts

sunshine45 — Wed, 21 Jul 2021 02:19:06 GMT

@SeaMaiden wrote:
@Desert Lily Do not choose Farmers...no discount at all for low mileage driving...

@SeaMaiden

that depends on where you live. my s/o gets mileage discounts in california with farmers. he recently switched his insurance after many years with nationwide.

Re: Insurance Discounts

sunshine45 — Wed, 21 Jul 2021 02:23:28 GMT

we have an insurance broker for both personal and business. i like that they deal with multiple insurance companies and can shop around for the best deal with the best coverage. we had had nationwide for our personal insurance for MANY years and switched over to ERIE insurance which had fantastic rates......so much better than nationwide in our area.

Re: Insurance Discounts

Mistreatedbycs — Wed, 21 Jul 2021 14:51:52 GMT

State Farm does not view renters as stable individuals. Doesn't matter if it's your own house or not.

I have loved to hate State Farm and there's no reasoning with them, your rep says they talk to the underwriters but I really don't think they do.

I had 3 people in the last 10 years rear end me, no fault of my own yet my premium has tripled. I asked for my policy to be renewed and my agent said "you know it could increase more if someone actually looked at it", and I said "you know chances are you are overcharging me and it could go down".

Loyalty doesn't do a bit of good with these people, when I decide to buy a new car, definitely will go out for quotes. I got rid of them when I had my business/building and saved over $1200 a year.

Hopefully you will be able to shop around, sometimes these independent guys that represent smaller companies turn out the best.