Junior Member
|
|
Join Date: Oct 2020
Location: Baltimore
Posts: 12
|
|
Junior Member
Join Date: Oct 2020
Location: Baltimore
Posts: 12
|
As an insurance broker, I'll speak on this. Is insurance a racket? For the most part, no. At least not personal auto insurance. In fact, auto insurance in general is the very least most profitable line for the insurance carriers. If a carrier can average a 4% profit, they'll be extremely pleased and that's a stellar year. Most auto insurance carriers actually operate close to break even or at at a loss every year. Yes, every year.
Do some auto insurance carriers count on you sitting around like a dumbbell while they gradually increase your premium? Yep! And Allsnake, I mean Allstate has been and still is the top offender. They have a very sophisticated algorithm that tells them just how much they can increase your rate without you doing anything about it. Price optimization is what its called and its a real thing.
Now, as an insurance broker, I tend to stay away from personal auto insurance. It's a pain in the ass. If you're calling me at every renewal, asking me to re-quote all of the companies I represent because your rate went up $10 a month, then I'm going to tell you, in the nicest way possible, to **** off and call 1-800-GEICO. You want someone to kiss your ass, call your life insurance agent.
Us brokers are typically, way better and much, much more knowledgeable about insurance than any captive agent will ever be, whether its Geico, State Farm, USAA, Am Fam...anyone. We work on your behalf, not the insurance company. When you mess up and shit hits the fan, an Independent Agent will go to bat for you. We advise, we consult and we care about our clients best interests above all, even if that means telling you we're not the right fit.
Sure, we have access to a bunch of companies and can usually find the best rates. But for the most part, we don't sell on price. We sell on coverage.
I have a story as far as vehicle mods go. My friend, has well over 25k in mods on his 2016 F-250. I told him that if that truck gets totaled, that the insurance company is going to give him whatever the market value is on a stock, 2016 F250 because he doesn't have any additional equipment added and he doesnt wanna pay the extra few dollars to insure the truck on an agreed value basis.
Thats it. Post up your insurance questions and I'll answer. Also, Happy New Year!
|