Switching auto insurance companies

[Dan Mitchell]

I'm planning on switching auto insurance companies. I currently have USAA, but because of a pending divorce, I need to get a new policy. USAA is a highly rated company, but the one other quote I got (Geico, online) was slightly more than HALF the USAA rate. I know Geico's not the company USAA is, and if the difference were 10% or so I could see it, but nearly HALF? Yes, it was for the same level of coverage. So I'm wondering if anyone has any insights into making sure (insuring? ;-) I get the LOWEST possible quote. Any insurance people out there, perhaps? I should be pretty low risk, 50ish, terrific credit rating. I do drive a sports car, however. Any tips???

TIA

Dan

Just did State Farm online, standard level of coverage, with car rental & travel expenses, $444/6 mos. 7 bucks more than Geico, and STILL only a little more than half USAA. Weird.

[Joe Pelonio]

I have State Farm and pay less than I would with Geico simply because of multi-line discounts, also having life and homeowners with them. Over 30 years I have been with them, and happy with their service. They also have their own bank and can often beat dealer interest rates on vehicle purchases.

Two of my kids once on their own found that the purchase of a small life policy lowered their the car insurance more than enough to pay for the life.

[Mick David]

I'm a USAA policy holder and am shocked by the difference in price. I'll have to check that out myself. Have you called USAA with the quote to see what they can do?

[Harry Hagan]

You're right! USAA is rated the highest. I wasn't familiar with the company.

Here's a 2009 rating by J. D. Powers from a national auto insurance study:

http://www.jdpower.com/autos/ratings/autos-insurance

[Mike Henderson]

USAA started by insuring active duty officers. Over time, they've expanded their membership. First, they allowed officers who got out of the military to keep their insurance. Then, they began offering the insurance to enlisted personnel and allowed them to keep the insurance after they left the service.

Nowdays, they seem to offer insurance to the general public - I haven't really paid attention to their membership requirements in a long time. I first joined USAA in about 1969 when I was in OCS.

USAA is a mutual company which means that the policy holders own the company. Each year, I get a check from USAA for a partial rebate of my premiums if their losses were less than the underwriting. Additionally, I have an "account" with them - a certain amount of my premiums is kept in an account at USAA and is part of the capital of the organization. When I stop using them for insurance (such as when I die) that amount of money will be paid to me or my estate.

I haven't had many claims with them but when I did have a claim, they handled it quickly and without any issues.

I can't tell you if you can get cheaper insurance, but in my book, you can't get better insurance.

Mike

[Scott Donley]

Dan, I would give USAA a call, something sounds off. I pay 347.00/6 Above the minimums with a 250 deductable. When my daughter was on my policy she wrecked 3 cars in 3 years, all her fault. USAA took care of them fast and trouble free.

Edit The 347 was my old truck, My new 4X4 is up to 436.00.

[Rich Stewart]

If you are not eligible for USAA (you have to be a veteran) try 21st. They beat Geico pretty good for me before I went to USAA.

[Rick Prosser]

If you are not eligible for USAA (you have to be a veteran) try 21st. They beat Geico pretty good for me before I went to USAA.

I think eligibility has loosened up a bit. I am not a vet. I am a member because I am married to the daughter of a vet. USAA service has been great, and cost was lower when I started - but looks like I need to do a cost compare with today's rates...

[Pat Germain]

I think eligibility has loosened up a bit. I am not a vet. I am a member because I am married to the daughter of a vet. USAA service has been great, and cost was lower when I started - but looks like I need to do a cost compare with today's rates...

Rick is correct. I saw the leader of USAA on CNN a few months ago. He said anyone with pretty much any affiliation with the US military can now join USAA. He said if your grandfather served in WWII, for example, you're eligible.

But strangely, USAA has not updated their web site to reflect this. Thus, anyone considering joining USAA should give them a call. They also have very good online banking services.

[Tom Godley]

Just make sure you really are getting the same coverage -- Having a policy come in 1/2 of another with the same limits and rating class is more than unusual. The online ratings can be confusing IMO - often things get left out.


All these companies are a little different -- and the cost of the new policies can change depending on the companies position in the market. The discounts offered for multi lines can make a huge difference. If it really is that much of a difference I would call USAA and ask them how they are rating you

USAA has an excellent reputation - but I have not heard much negative comments regarding Geico's auto lines. I have Chubb

[Bill Arnold]

I've been with State Farm for decades and have never had an issue with them. Whenever I've checked with other companies, they say they can't beat my SF rates. Currently, we have our house and three vehicles covered by SF.

[Harry Hagan]

I've been with State Farm for decades and have never had an issue with them. Whenever I've checked with other companies, they say they can't beat my SF rates. Currently, we have our house and three vehicles covered by SF.
Bill,

You described my situation to a tee.

Funny thing is, when I told my SF agent that I was going to shop around for better deal—my rates were lowered a few days later. :rolleyes:

[Dan Mitchell]

Thanks for the replies. I have talked to a USAA rep no less than 3 times over the past couple months trying to work this out; the last time just about an hour ago, they have no explanation for the drastic difference & are unable to alter it. I have a number of products through them & again, had their car insurance until this most recent divorce mess. The only thing I can figure out is that it is a result of my wife having totaled TWO cars while under USAA, but as I keep telling them, SHE NOW LIVES 1,000 MILES AWAY. They say this is not the factor, but nothing else really makes any sense. I have no choice; unless I find another company which is better & lower in cost in the next week or so, I'm going with State Farm.

[Jesse Espe]

Dan, I've had USAA for 15 years now and have never used any other carrier. I've never had any problems with their insurance products (just don't ask me about their mortgage services :mad: ). That being said, you gotta do what you gotta do, and if you have confirmed the coverage is the same for SF that you have via USAA, then go for it.

Cheers,
Jesse

[Jim O'Dell]

Back when I was in college and newly married, my wife was driving my little Mazda RX-3 to work on the loop in Waco, TX and a guy in a 1/2 ton truck pulled in front of her crossing the highway, in the rain. She t-boned him at about 50-55 mph. Totaled both vehicles. (She ended up with 4-7 stitches in her knee where it hit the keys, and a flat spot on her forehead from hitting the windshield. Can still see it to this day when she wrinkles her forehead:D) He had State Farm. Because of the way we were treated, we switched to SF and have been with them for about 32 years now.
I got to know most of their local adjusters when I was doing theft recovery work for a company back in the early 90s. I still see one about every few months when he brings a personal car in for us to work on. All really nice guys and gals. Jim.

[Ted Calver]

I agree with Mike on the quality of USAA insurance. You have to factor in the return of premium at the end of the year as part of the cost of the insurance. Also, since I have been with USAA for a loooong time, a percentage of my several thousand dollar capital account is returned each year too. That having been said, unlike the old days, they are still a big impersonal insurance business, and I underline business. I was recently dismayed by a note on my policy renewal that suggested our credit history (which is excellent) affected our insurance rates, implying a better rate was avaible but we didn't qualify. A call to USAA brought no satisfaction. Some actuary? had determined that people in our credit bracket were more likely to file a future claim--never mind the fact that we have been with them for forty years and our only claim was in 1980 for twentyfive hundred dollars when the wife ran the car into a snow bank. I was disgusted and almost told them to stuff it, but figured another insurance company would use the same lame tactic. They are certainly not the user friendly USAA they once were.

[Michael O'Sullivan]

I'll throw in my $0.02 for GEICO -- I've had 4 claims (I think) and they have all been completely painless. I have SF for my home insurance but (knock on wood) have yet to make a claim -- however, I chose them because the agent is local in my town.

[Dave Lehnert]

I have Nationwide insurance. I insure a Ford Mustang and F150 extended cab pickup for $600/ 6 months.