62 years of loyalty and you get…

A rate $600 higher than the market will bear.  Such a shame.  I have been told that if an insurance company has a customer with no claims they become profitable within about three years.  Based on this it is safe to say a customer of 62 years has earned your company some money, yet you let them go.  Kind of like the goofy T.V. or movie scenario where the employee of 30 years gets a cheap watch and a certificate of appreciation.

In your own world be sure that loyalty goes both ways.  Loyalty is earned and should not be given.  If you vote with your dollars you will likely not have this happen to you.

Dear Enterprise Rental Car,

8/29/13

I had an unfortunate moment last Thursday when my car was struck by another one.  Now that I have had some time to relax and think I thought I would right you a letter.  I believe that if you are going to hand out feedback you need to be willing to share good and bad.  DISCLAIMER, I have been haphazardly recommending you for about ten years since a previous employer had arrangements with you.  Shame on me.

The perfect crime, insurance edition

Just read this by Seth Godin; The Perfect Crime a very similar thing actually occurs in Insurance.  Thanks for the idea Seth.

I cannot factually speak on any of the lobbying or NAACP points.  Instead here is what I do know.

None of the insurance advertising you see actually shows you how to be a better consumer in the long term.  The companies only concern is on switching your insurance this year which, since the cost to acquire customers is high, is pretty stupid.  It takes several years to turn a profit on any individual, why would you only advertise for this year?  Because you are conditioning the masses.

Sometimes they choose to leave

And it actually happened twice in the last week.  Now the first one was expected, when one person marries another or moves in with another generally one agent gets tossed out.  Aw well, it happens.  Part of the business I suppose but still stings a bit.

The other was a little bit of surprise but should have seen it coming.  See on occasion the value that you perceive that you provide is not nearly the same to two different people.  Similar to above or as I sometimes like to say “It’s whatever.”  Similar to many athletes you have bad moments, the quicker you shake them off the better.

Can you send that to me in writing?

I say this a couple of times a week.  When it comes to insurance there are two specific times that this is a popular phrase; claims and loyalty.

With claims, I am asked “but will my rate go up?”  Odds are pretty good but it is not certain that your rate goes up if you file a claim.  I have seen plenty of awful driving records but since they have not had their records reviewed by the current company the rate is solid.  That doesn’t mean rates do not go up with claims, it just means that you have somehow avoided having your record looked at.  Also find it amusing to watch Nationwide and Allstate advertise “diminishing deductibles.”  Seriously, most people do not have claims.  The most common claim is an auto insurance glass claim and that already has no deductible.  In my opinion you are better off holding on to to your money.

Big portions = insurance discounts

Stumbling through any amount of commercials can be entertaining and also very revealing.   Many times entertainment takes precedent over information.  Actually more times than not things are done to get your attention in the hopes that  you will provide some attention/dollars to their product.

I have harped on insurance discounts for a while, bottom line is any list of discounts you can provide does not out do your characteristics.  Your credit score, education, residence and marital status mean way more than all the discounts.  But talking about this, the facts, is not appealing so we disguise it with discounts.  Same thing with food.

$8 to park at a hospital?

Seriously, that is what it cost when I went to visit my grandmother at the hospital.  That is awful, I have paid less to go to professional sporting events.  $8 can provide adequate nutrition for at least 1 person if not 2 for a day but instead it bought me a parking spot for 1 hour.  There is more than enough evidence that it is the presence of loved ones that truly enables healing yet they make it difficult.  So let’s dive a little deeper;

Who causes “higher” insurance rates?

Most people will immediately think it is the company.  The company sets the rates and the underwriting standards that you accepted when you signed your contract with them.  The company determines which of your tickets, accidents and claims will have an impact on your rate and for how long. ** Despite what you may have heard corporations are not people and cannot get tickets or have accidents or claims**

Is time the best Insurance Discount?

It might be.  It might also be the most under used and least asked about.

If you are between the ages of 16 and 25 your lack of time on this planet is a reason why you spend more on insurance.  BUT what if you pay attention?  Maybe you start on your parents policy and make sure they have solid coverage so when it is time to switch you are in a better position.  Then, typically after three years of being licensed, it is time to shop.  Now just stay on top of things because you get a little older you can likely improve your rate, assuming a clean to fairly clean record.