GEICO WON 2Nite ......

Discussion in 'Credit Talk' started by dogman, Jul 23, 2001.

  1. dogman

    dogman Well-Known Member

    Company Agent vs Independent?

    Breeze - as you know from my posts, more and more of my daily realtionships are with AMEX - brokerage, banking, card - almost auto ins.

    What is good about an AMEX or GEICO company agent vs the independent agent? I guess I thought the company store salaried personel had less cost?

    I would appreciate your ideas! ???
    c ya Dogman
     
  2. breeze

    breeze Well-Known Member

    Re: Company Agent vs Independent?

    hmmm lemme see - there are pros and cons to each of course.

    A company employee-agent is under the direct control of the company. That's good and bad, There is less room for deception - the phone calls are monitored, their work is checked - things like that, however, they do not have the leeway an independent agent has.

    Many employee-agents have never worked anywhere else in insurance, so their experience is likely to be limited to that one company's policies and procedures, and they assume that their understanding is "the law" when in fact it's company policy. Most independent agents work with more than one company, are aware of different company requirements, can handle unusual situations.

    This one I can give you an example (this would not happen with Geico). I wrote auto ins for dealerships off and on, I live in a military area. There are guys who reside here in Norfolk (their ship is homeported here) but have their cars registered in their home state - not in Virginia, and may have driver's licences in both states. They are perfectly legal. Some companies don't know anything about this. I know which companies will take this guy and which ones won't.

    I know which companies won't cover you if you drive into Mexico, LOL. stuff like that.


    Employee-agents are working for the company. Theoretically, independent agents are free to work for you - that is to get you the best deal for you. Some do some don't - human nature being the variable, hahaha.

    Personally, I look for a combination of things, knowing what I know. I want the best rate I can get from a company that has a good reputation for paying claims and a top-notch financial rating (ability to pay claims).

    I prefer to deal with nice CSR's but it is not essential, LOL. I have USAA - I mentioned to one of their CSR's that I was an agent and she said "I don't see what that has to do with it..." I thought that was snotty, and not something I would expect from a USAA employee.

    I'm sure this answer is clear as mud, LOL. If you're happy with your rates and service, then you made the right decision.

    breeze
     
  3. GEORGE

    GEORGE Well-Known Member

    Re: Company Agent vs Independent?

    I JUST LOVE THAT COMPANY (USAA)...(short version) The guy across the street HIT AND RUN DUI my parked car...their insurance will cover...have rental car, wife goes on vacation, I don't need to drive two cars, turn in car for one week, re-rent car...insurance company REFUSES TO COVER SECOND RENTAL!!!!! DUHHHHHHHHHH
    -----------------------------------------------------------------------------------
    breeze
    I prefer to deal with nice CSR's but it is not essential, LOL. I have USAA - I mentioned to one of
    their CSR's that I was an agent and she said "I don't see what that has to do with it..." I thought
    that was snotty, and not something I would expect from a USAA employee.
    ----------------------------------------------------------------------------------------
     
  4. eviljeeba

    eviljeeba Well-Known Member

    Wow, what a wonderful story. Having been an insurance broker for the last 5 years, I am REALLY surprised GEICO reps on the phone can simply lower your rate.

    The rates are "set in stone" except for the broker fees some companies might charge.

    I wonder how GEICO could do such a thing?! I can't help but wonder if someone made a mistake at one point or another with your policy. i.e. not giving you a renewal credit for being with them for so long, failed to drop off a point from your insurance record, etc...

    Lets put it this way, everytime I get a call from a prospect who tells me they're with GEICO, I get a HUGE smile because I know my rates will be far less than what they are currently paying. In addition, I can offer my them my personalized service when they have a claim, and I go to bat for them when a claim situation arises.

    Anyways, congrats...

    Umm...I would like to offer free advice to all on here, since I've received SO much from yaw'll...

    The top 4 low-rate insurance companies are:

    1. AAA of SoCal
    2. 20th Century
    3. Mercury Insurance Company (DO NOT HAVE AIS AS YOUR AGENT!)
    4. TravCal Insurance (Through the Price Club)

    Also, you should always consider going through an independent insurance agent who does NOT charge a broker fee.

    Oh, if you are with Travelers Insurance Company, any one of the above would be able to save you LOTS of money.
     
  5. hurricane5

    hurricane5 Well-Known Member

    Re: Company Agent vs Independent?

    USAA used to be the best ins. comp. out there (In my opinion)...I had them in the early 90's when you had to be an military officer to be a member of USAA, no problems whatsoever. I was in VA, when the hurricane (can't remember which one) hit south Florida (where my dad is), I had to send him a lot o of emergency money (right when my USAA premium was due)..so I called USAA and they pushed my due date back like 3 months.

    Once they made the decision to open up membership to EVERYONE in the military, etc. the service went down dramatically. I think they opened themselves to so much more in terms of payouts, etc, that cust. serv. went out of the window. To me USAA is basically in cash generation mode (from premiums)....I switched to Geico about 5 years ago (even though the premiums were slightly higher) and have been very happy with their service and prices.



     
  6. tom65432

    tom65432 Well-Known Member

    Re: Company Agent vs Independent?

    eviljeeba:

    I have had GEICO for many years and find they are great on service and premiums. Each time I renew, I call around and shop for lower rates and have found no one lower. Who is lower?

    My son shopped around and ended up with GEICO also.

    The worst one out there is Hartford. I gag every time I see their commercials.
     
  7. eviljeeba

    eviljeeba Well-Known Member

    Tom

    Maybe GEICO has the best rate for your "territory". Insurance companies get to pick and choose where they want to have the lowest and highest rates.

    For example if one lives in CA, Tyron from Los Angeles will have a VERY high rate, as Tyron lives in a high crime area. However, Charles Winchester, III who lives in Newport Coast will have a much lower rate, as he lives in a nice area.

    Some may say that this practice is illegal, but it happens everyday. Instead of calling it profiling or whatever, the insurance companies call it a territory code.

    Anyways, I am glad GEICO was able to save you tons of money. Where bouts are you from anyways? Because I know in Southern CA, Orange County Area, GEICO is a joke when it comes to low rates.
     
  8. GEORGE

    GEORGE Well-Known Member

    Re: Tom

    RED LINING...
    ---------------------------------------------------------------------------
    Some may say that this practice is illegal, but it happens everyday. Instead of calling it
    profiling or whatever, the insurance companies call it a territory code.
     
  9. dogman

    dogman Well-Known Member

    Re: Tom

    san francisco - does that say it all?
     
  10. Hal

    Hal Well-Known Member

    Re: Tom

    I used Geico for several years - no tickets, no accidents etc. and received their "preferred" rate.

    I was browsing the web one evening, and came across ESURANCE.COM. I applied for a quote, on a whim, and ended up with a rate $200.00 less than Geico's preferred rate for Baltimore.
     
  11. eviljeeba

    eviljeeba Well-Known Member

    George & Hal

    Yes, I had it on the tip of my tongue, as prospects try to tell me everyday that the practice is illegal. IDIOTS! Anyways, thanks...

    Hal, yeah...although GEICO has a very strong rating with AMs Best, they're rates are SUPER high. I am happy you were able t save yourself some money! :)
     
  12. breeze

    breeze Well-Known Member

    Re: Tom

    well, guys, I don't think this is what is referred to as redlining. Redlining is when a company surreptitiously refuses to issue policies to a certain group of people.

    Redlining is based on demographic data other than insurance risk statistics. For instance, a specific mobile home park might be redlined by a single company; a designated inner-city area, a particlular apartment or housing complex.

    Different rates are allowed for different zip codes, different cities, counties, but it has to be based on verifiable insurance-related statistics, not on other information.

    Here's an interesting article about redlining - and the use of credit reports - in insurance underwriting.

    http://www.insure.com/home/travelers600.html


    Anyway, higher rates based on statistics that prove higher risk is not considered redlining. Refusing to insure someone at all because of age, race, or location, is considered redlining.

    breeze
     
  13. lbrown59

    lbrown59 Well-Known Member

    Re: Company Agent vs Independent?

    Dosen't aarp use hartford?



     
  14. tom65432

    tom65432 Well-Known Member

    Re: AARP

    Yes, AARP uses Hartford.
     

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