GEICO for your home but it is a Hartford quote?

URDRWHO

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I'be been around doing this insurance business since 1984. For the past 13 years I've been 99% commercial, specializing in contractors. But I still have a few remaining personal lines clients.

Yesterday I get a call from a client that I have with Encompass (Elite policy). Yep I know the Elite policy isn't going to be sold on price but that Elite paper has always been good. I go back to the CNA days with them. In my area they have always been great at paying the claim and paying quickly. Other's may have a different experience.

Back to the call...

They received a quote for the homeowners policy - no auto quote. The wife called GEICO for a quote but the quote she has says at the top GEICO for your home but the quote is a Hartford quote. Is GEICO now writing Hartford HO policies?

I haven't had my finger on the pulse of personal lines so maybe the gecko and elk are now working together?

I can write Hartford so for kicks I'll do a quote and see if it is the same as the quote on the gecko's paper.
 
When I submit new business I the UW always wants a RCE done. I have a gut feeling that the GEICO arrangement will do the RCE after you buy the policy. Oops --- the amount on the swelling needs to be raised and BTW your premium is going up.

Used to see that stuff with life agents who quoted preferred best, best, best rates to a 100 pound overweight guy, high BP, etc. Silly me I tried to give the quote I thought the guy might get. So when the life underwriter of the best, best, best rating sales guy would present the policy that ended up being offered......well we've heard the speech, "dear insured, you aren't in good shape, at least be happy they offered you a policy" ....blah...blah....blah.

Maybe I'm wrong about the RCE matter but after 35 years I've become soooooo jaded.
 
GEICO is similar to Progressive in this regard. They advertise on TV as if they manufacture a HO policy. However, in the very small print on the screens it states the HO is offered from the agency they own & the coverage is from another carrier. IE. Progressive & GEICO are merely getting paid a commission as the agent to write the other carrier.

I believe in the Progressive case it is some off brand compnay called Homesite, maybe a subsidiary of American Family. GEICO must offer Hartford just as I think Costco sells Hartford auto insurance.
 
The small print in advertisements, not just insurance but so many is just a kick in the face. It is all to satisfy some legal department but does nothing for the consumer. Tiny fonts and gone in a second.

Does the GEICO advertisement say you get a discount for bundling? How does that one work? Since it isn't within the same insurance agency is GEICO getting some form of contingent commissions to steer the HO to Hartford?

I need to think about this??? If it were within the same insurance company I could understand the discount but within different insurance companies --- something seems odd, I just can't put my finger on it. Is the discount coming from the GEICO published rate or from the GEICO agency?

If it is the agency, could the New York Marsh case be a problem for this situation? Been a lot of years since I read that decisions so I can't remember all the bells and whistles of the case.

One thing I do remember from the Marsh case was that brokers have the duty to provide clients with multiple, competing bids from different insurers.

I believe I could make a case for steering and a form of commission rebate. If this were bundling within one insurance because you would get a credit on both auto and HO, the agency would not be making up the difference on either policy. IF GEICO is giving an auto discount for placing an HO policy with them, the loss of income on the auto would be made up on the HO side of the commission.

Does Hartford give a discount on the HO if you are GEICO customer? Outside of Associations this may or may not be within acceptable guidelines. If you are a member of AARP and you get insurance discounts that can be done legally it is do through the idea of Association. All member of the Association can receive the discount and you pay to be a member. Years ago some major med policies were sold through association plans.

I know for a fact things can be apparent, right in front of our faces but not be following the rules. One day I was on my DOI site and wondered around, I clicked on a button and WTH!?!??!?!

This is a small bit of what I sent to my local State Representative "I saw a hyper link on the site that talked about finding agents. It piqued my curiosity and thought it would go to the PA Department of Insurance web site. Instead the link takes you to a site that has a private company name, (name redacted).

This is a marketing situation of grand design and I fear it may be too powerful for you to do anything about it.

I've started talking with other insurance agencies and nobody knew about this matter. I have not found anyone that is happy to hear about it. Pennsylvania government has taken an action that is prejudiced toward "redacted" agents and it does not grant an equal opportunity to all agents."

A bit of the response "Executive Director of the House Insurance Committee, is in receipt of your e-mail and is looking into it."

In the end the link was removed and I never found out who did the deed of placing an advertising link on the DOI website.

So yep --- just because we all think because this has been going on doesn't mean there aren't sticky issues with it.

GEICO is similar to Progressive in this regard. They advertise on TV as if they manufacture a HO policy. However, in the very small print on the screens it states the HO is offered from the agency they own & the coverage is from another carrier. IE. Progressive & GEICO are merely getting paid a commission as the agent to write the other carrier.

I believe in the Progressive case it is some off brand compnay called Homesite, maybe a subsidiary of American Family. GEICO must offer Hartford just as I think Costco sells Hartford auto insurance.
 
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Does the GEICO advertisement say you get a discount for bundling? How does that one work?

the multi policy discount applied to the GEICO auto policy or Progressive auto policy is given by their insurance company. they are basically saying "we give you a multi policy discount for bundling by carrying your insurance with one of the many insurance entities we own"--- so, they own the Insurance carrier offering the auto & they own the insurance entity/general agency that sells the home policy".

Ironically, when multi policy discounts 1st came on the scene in the mid 1990s, Progressive filed lawsuits saying offering multi policy discounts was unfair trade/advantage because they didn't offer other products.

The own the carrier, they decide on the discount unless told by an insurance regulator it cant be done. I doubt a regulator is going to take a discount from a consumer.

I just don't like the small font in the ads. almost every person I have ever met that has one of these types of situations always says "I have my home with Progressive" or I have my home with GEICO. And, they really don't. The carrier is Home Site or Hartford & the agent/agency is Progresive/GEICO.

not a huge deal, but Home Site is not known by consumers like the brand Progressive is.

Progressive HO.JPG
 
GEICO is similar to Progressive in this regard. They advertise on TV as if they manufacture a HO policy. However, in the very small print on the screens it states the HO is offered from the agency they own & the coverage is from another carrier. IE. Progressive & GEICO are merely getting paid a commission as the agent to write the other carrier.

I believe in the Progressive case it is some off brand compnay called Homesite, maybe a subsidiary of American Family. GEICO must offer Hartford just as I think Costco sells Hartford auto insurance.


Sort of correct. GEICO is the largest homeowners insurance agency in the country, and they sell for a number of companies/carriers. Progressive, on the other hand, now actually underwrites their own product. They bought a Florida homeowners company a few years back called American Strategic and are now writing it nationwide.
 
Sort of correct. GEICO is the largest homeowners insurance agency in the country, and they sell for a number of companies/carriers. Progressive, on the other hand, now actually underwrites their own product. They bought a Florida homeowners company a few years back called American Strategic and are now writing it nationwide.

good to know. thanks for the info as my info was both outdated & part assumption.

odd part is you would think if Progressive underwrites their own product, their website wouldn't indicate they don't underwrite their own policies & instead sell them through affiliated & unaffiliated companies. So, likely another way for them to compete directly with the agents contracted to sell their non-direct auto policies. Looks like in addition to owning ASI, they offer home insurance via a total of 10 carriers: Progressive Home Advantage Companies
 
It is the TV advertisement that burns me. It isn't just GEICO, it is car companies, loan companies, etc. I guarantee that nobody can read that small font in the amount of time it remains on the screen. It is a fiction to think it informs anyone except to satisfy the FCC.

Select Quote TV Commercials --- how many people can read the small font showing that those rates are preferred plus rate? I'd like to know the statistical number of people who get preferred plus rates. IF I were the FCC I would be making the truth in advertising case to show the rate that most people will get and I'm guessing it isn't God's rate. I've read that less than 5% of applicants qualifies for Preferred Plus Life Insurance. In the retail business that could be a possible bait and switch situation.

When you have people saying they have GEICO homeowners and think it is from GEICO --- to me that is a problem with truth in advertising.

the multi policy discount applied to the GEICO auto policy or Progressive auto policy is given by their insurance company. they are basically saying "we give you a multi policy discount for bundling by carrying your insurance with one of the many insurance entities we own"--- so, they own the Insurance carrier offering the auto & they own the insurance entity/general agency that sells the home policy".

Ironically, when multi policy discounts 1st came on the scene in the mid 1990s, Progressive filed lawsuits saying offering multi policy discounts was unfair trade/advantage because they didn't offer other products.

The own the carrier, they decide on the discount unless told by an insurance regulator it cant be done. I doubt a regulator is going to take a discount from a consumer.

I just don't like the small font in the ads. almost every person I have ever met that has one of these types of situations always says "I have my home with Progressive" or I have my home with GEICO. And, they really don't. The carrier is Home Site or Hartford & the agent/agency is Progresive/GEICO.

not a huge deal, but Home Site is not known by consumers like the brand Progressive is.

View attachment 5799
 
When you have people saying they have GEICO homeowners and think it is from GEICO --- to me that is a problem with truth in advertising.
while I feel your frustration, most friends I know that have an independent agent say "I have my insurance with ABC or XYZ or Hometown Agency"-- those are all agencies & the client may actually have 3-4 different carriers for Auto, Home, motorcycle, boat, umbrella, etc. rarely do they say "I have it with Frankenmuth or Safeco or Auto Owners"
 
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