Dropping a Long Term Relationship with My Insurance Company

zergkiller

Expert
63
Wow, this is great! I’m wondering about some deep dark secret about car insurance, and suddenly thought of this forum to get a deep dark answer! Cool.

Here’s the problem. I have an excellent driving record, no accidents no nada for years and years. I have had Liberty Mutual for about thirty years with no complaints at all. I don’t think I’ve ever turned in a claim. But just to check bases, I thought I might get a better rate, and went out for quotes. I’m still reeling over the differences, and need to get a spreadsheet together but ultimately, my concern is that there be some invisible variable in dropping a long term relationship in favor of a new one.

Suppose I change to another company for a substantial price drop and get the identical benefits. Then, I have the mother of all accidents with the new company. With Liberty Mutual, I have a reputation that has lasted for about three decades. With the new company, they don’t know me.

Question: Would the new company jack my rates to the sky the next year and from then on, treat me as if I were dirt?
 
You should never get bad treatment from a reputable carrier. Not to say you won't or can't, but you shouldn't.

Many companies have first accident forgiveness. Check into this when you're inquiring. But the fact that you were a long term customer with LM wouldn't preclude your rates from increasing because of an at fault accident - unless they too have accident forgiveness for a first accident.

The claims adjuster may treat you with a little more respect.

The formula to determine your insurance premium after an accident is pre-written. It's a specific percentage/factor on specific coverages (liability, coll, etc.). But changing carriers wouldn't have an effect on your driving record so if you're a good driver, then you should remain a good driver, right?
 
I would not be so afraid to drop a carrier if I get a great rate from another very good company.

I would look up an independent agent near you and make sure

they represent the big companies out there not all independent agents have the big companies..

Come companies to consider are:
Safeco
Allied
Encompass
Hartford. All good in term of paying out claims.

Good Luck:yes:
 
Wow, this is great! I’m wondering about some deep dark secret about car insurance, and suddenly thought of this forum to get a deep dark answer! Cool.

Here’s the problem. I have an excellent driving record, no accidents no nada for years and years. I have had Liberty Mutual for about thirty years with no complaints at all. I don’t think I’ve ever turned in a claim. But just to check bases, I thought I might get a better rate, and went out for quotes. I’m still reeling over the differences, and need to get a spreadsheet together but ultimately, my concern is that there be some invisible variable in dropping a long term relationship in favor of a new one.

Suppose I change to another company for a substantial price drop and get the identical benefits. Then, I have the mother of all accidents with the new company. With Liberty Mutual, I have a reputation that has lasted for about three decades. With the new company, they don’t know me.

Question: Would the new company jack my rates to the sky the next year and from then on, treat me as if I were dirt?

There is no loyalty among thieves or insurance companies. Long histories with a company don't count for much. My philosophy is to shop my insurance coverage every three years just to make certain that I do not pay too much.
 
Last edited:
If you have an accident or large claim in the first 60 days of a new policy, you will probably get asked a few more questions. After that, its no big deal.

Why the few extra questions? They just look for insurance fraud, people getting insurance just to file a claim. The questions usually stop when they realize there was continuous coverage.

Odds are though, you wouldn't notice a difference.

As SCLady said, rates would probably go up either way, or not, depending on the policy. Some carriers offer accident forgiveness only after being with them for a certain length of time.

The only other thing I recommend is making sure the rate you are quoted is the rate you will get. Ask the agent quoting it for you. He may have had to make some assumptions to get you the quote and needs to verify a few things to underwrite the rate for you.

Dan
 
Wow, this is great! I’m wondering about some deep dark secret about car insurance, and suddenly thought of this forum to get a deep dark answer! Cool.

Here’s the problem. I have an excellent driving record, no accidents no nada for years and years. I have had Liberty Mutual for about thirty years with no complaints at all. I don’t think I’ve ever turned in a claim. But just to check bases, I thought I might get a better rate, and went out for quotes. I’m still reeling over the differences, and need to get a spreadsheet together but ultimately, my concern is that there be some invisible variable in dropping a long term relationship in favor of a new one.

Suppose I change to another company for a substantial price drop and get the identical benefits. Then, I have the mother of all accidents with the new company. With Liberty Mutual, I have a reputation that has lasted for about three decades. With the new company, they don’t know me.

Question: Would the new company jack my rates to the sky the next year and from then on, treat me as if I were dirt?

If you have been we the same company for 30 years I can just about guarantee that you are paying too much.
 
Have to agree with xrac on that. I never shopped my auto for years and years till one year it just seemed like I was paying too much for the coverage I had. I had been with Pemco since my teens and through the years with grown kids.

I looked elsewhere and found about ten "name" companies that were actually 50% or so cheaper. It is suspect when you have one company lowball, but I had a choice of ten.

I too look just about every year. I still have pemco for some things (not my cars) but I put all of them through the paces now at renewal. Pemco is a good company, nice people.. but when it comes to keeping the money in my hands vs. theirs if I don't have to, screw em, I'm keeping my money and going with somebody else. I have enough friends.
 
Ask your Liberty Mutual agent what benefits you have earned for being an auto insurance customer for 30 years. For example, you may have earned accident forgiveness, which avoids higher rates for your first at fault accident.

But if the savings with other companies are substantial, being surcharged for an at fault accident may still be less with them, than what Liberty Mutual is charging you now.

It's possible you may have earned other benefits, such as some type of limited renewal guarantee.

After I saw a customer, insured with the same car insurance company for many decades, cancelled after their first claim/accident ever, due to a concern with deteriorating driving skills from their age/medical condition, I knew the hoopla about auto insurance companies valuing their long term customers was mostly propaganda.

It used to make a difference in underwriting decisions, like when to keep a policy with undesirable risk factors. I believe it's an unfair claims practice to handle a claim differently because of the amount of time you have insured with the company.

Find out if you are giving up anything unique with LM. If there is something unique, make sure it has actual value, by asking other agents about it. If you can get the same or better coverage at a better price, I say go for it.
 
Folks I am sorry I haven’t responded sooner. For some reason, the website didn’t notify me r/e responses, and I had to come back to see if anyone had answered. From past experience, it takes about a day, but still I waited. Too long apparently. Look at all the great responses! Who could think of a better place to get inside opinions?


SCLady
“Many companies have first accident forgiveness.”

I didn’t know that! Like most people, I would have found out AFTER the hypothetical accident, or maybe never!

Sales71
“I would look up an independent agent near you and make sure.”

Well, I wouldn’t have thought of that either. Duh.

xrac
“My philosophy is to shop my insurance coverage every three years just to make certain that I do not pay too much.”

Not only affirmation, but a proven plan shows itself. Super!

djs
“The only other thing I recommend is making sure the rate you are quoted is the rate you will get.”

Never thought of that either.! I would be soooo mad, and if not done in the correct order, that is getting the first policy before dropping the second one, soooo screwed.

LGilmore
Thank you for your comment. An affirmation by an expert. Great for confidence building.

AgentProvocateur
Thank you for a great overview and experience-based comment.
 
ZKiller I hope your not making fun of us. XRAC takes great pride into each one of us??:swoon::swoon::swoon::no:
 
Back
Top