Auto Insurance Shopping in 2008: Part 2

Well, it is now a month into the new competitive auto rate market. The sky has not fallen, and people are not going too crazy shopping around. The calls we get are from people that have recently been cancelled for non-payment, are recently licensed, or have highly active driving records. A few callers are curious about how we're doing (we are doing great!) A few have been wondering what their renewals will look like (we've been told the rates are changing again in July to iron out some issues with the first roll-out). Companies are monitoring activity closely. Our underwriters have been very helpful and receptive to our questions and situations. We've had 1 auto policy so far go to the MAIP, and the transition went smoothly. Every day is a new adventure, as we learn more about all the factors that are now being considered for quoting a policy.

In researching this article, I went online to see what companies are writing about Massachusetts Auto Insurance. All the sites I visited are eager to quote my business. Many offer to provide quotes from multiple carriers. None of the quotes I received were accurate.   Insurance.com offered to give me a comparison among Massachusetts companies, and sent me to Liberty Mutual's website.  No other options. Their rating tool would not allow me to choose anything but 20/40 on underinsured or uninsured bodily injury coverages. It only gave me an option for $15/day on rental. Who gets that today? I did not qualify for accident forgiveness, but I was getting a group discount (what group?) I selected comp. and collision for a Ford Taurus SEL, and received rates for a Taurus LX. (Ford offers an LE model, not an LX, and it's not what I requested anyway!). It did not identify what the different categories for anti-theft discounts were, so if you are not insurance-savvy, you would have no idea what to select.

The Mass. Division of Insurance had a premium comparison tool that was even worse, as the categories were even more limited, and the premiums were not at all accurate.  A third site claimed my e-mail was on its way, but I have not received it yet. Progressive is already in hot water with the State, as they are basing premiums on a six month policy, instead of a 12 month policy, which all the other companies are using.

Several written articles claim companies are using credit scores in determining premium. This is false-companies cannot use credit scores for auto insurance rates in Massachusetts at this time. That may change for April, 2009, however.

We are seeing past claims being considered. Even the ones where you are not at fault, such as glass and hit by a deer type claims. How long you have been with a carrier is having an effect on quotes, even when it's not the company you are quoting for.  All the traditional discounts are still being applied. It bothers me to go to a website and see emphasis being put on passive restraint and anti-theft discounts like they are something new that not all companies offer-they are offered by all companies, and have been for a long time. I cringe when I drive by other agencies with big signs that state"20-28% insurance discounts available here!"   They do not tell you that the discounts are many and varied, and apply to certain parts of the policy, not the total figure. And not everyone is eligible for every last discount. Insurance companies are guilty of it as well.

The calls come in from folks stating "Hey, Metlife says they can save me $400.00, can you?" and "Liberty says they can save me 20% if they write my cars and house." Ask to get it in writing. Then go right to your agent (or us) and find out where that 20% is really coming from.  You might just be surprised.