Thinking of switching Auto/home insurance to Ameriprise (Costco)

[JEDI]

got my 6 month renewel from Nationalwide for my 2005 Mazda3i. It went up from $540 to $557. But my car keep depreciating so why isnt collision coverage cheaper?! WTFBBQ?!

i have costco, so decided to try their painless online quote.

so far their online car quote for the same coverage is $400 less per year! its $365 per 6 months.

and that doesnt include the discount for having both car and home insruance with them!

1) What do you think about Costco insurance? any other insurance companies you recommend that i get a quote from?

2) website that gets quotes from multiple insurance companies?

3) Should i use an insurance broker? If so, recommendations for Northern VA?


edit:
Tried Insurance.com

all their quotes for Progressive/Traverler's/2 other insurance companies i've never heard of were around the same ballpark as Nationwide ($550/6months).

so why is Costco so much cheaper at $365/6months?

edit2:
There's suppose to be a $100 signup bonus for costco members that join in Dec.
the offer code in in their bi-monthly coupon mailer, which i lost 🙁
anyone know the code?

.

 

[rpanic]

1. I have heard mixed things about it, biggest complaint was dealing with it if you got in an accident.

2.Don’t know, I ended up with AAA. (also you them for home)

3.I would never use broker, that’s just adding a middle man that needs to be paid too.

You could also try Mercury Insurance they have been the lowest on and off for me.

 

[Dream Operator]

1. I have heard mixed things about it, biggest complaint was dealing with it if you got in an accident.

2.Don’t know, I ended up with AAA. (also you them for home)

3.I would never use broker, that’s just adding a middle man that needs to be paid too.

You could also try Mercury Insurance they have been the lowest on and off for me.

While one pays for a broker, they are paying for them to do the dirty work among several companies. Brokers understand the business and the coverages and are often connected with quality companies that most have not heard of as they don't advertise like the majors. They also don't have the pressure that agents do that work directly for the companies (Like Farmers, that company is brutal on their agents). May not be for everyone, but my experience has been very positive.

One of my best friends does this for a living and he consistently beats most major competitors. The percentage of people that he has quoted that he was not able to provide the same or better coverage for a lower price is less than 5% over a two year period. I can also say that he doesn't make much money from one sale, or in general (especially compared to the time he puts into it). It takes a lot of clients to make a decent living in that biz.

From what I have seen, stay away from companies like Esurance, Geico, Progressive, Farmers, State Farm and Allstate. They are generally not competitively priced (based on my brokers findings from helping several of my friends and family members). Companies that don't spend millions of dollars on marketing may be able to provide better prices, you just have to find them since they aren't on TV all the time.

JEDI, have you compared the details of the coverage? Make sure everything is included at Costco that you currently have and that the values for the coverages are the same as well. I haven't compared with Costco before, so that's all I can offer. You might look up a broker (or agent, as some go by) in your area and try a quote. Most will do it for free, so you only have about 10 minutes to lose.

 

[TubeTote]

Hi,

I'm an insurance broker, and I can tell you we are anything but a middle man! I spend countless hours of my time understanding the industry and products, and also deal with my clients' issues and concerns. I definately earn my commissions.

As far as competitiveness, I beat the 'direct writers' on a regular basis...more than 90% of the time. What people tend to forget about a company such as Geico is the enourmous amount of money spent on marketing their product...think about who is paying for those ads. Supporters of companies such as these are essentially trading the knowledge and experience of a broker for a green lizard ad campaign, under the premise that you can "do it yourself!" Well, almost every time (90% or better) I run into folks with direct written policies that they did themselves, they have crappy coverage. They are often missing key coverages that can be extremely important, especially on a homeowners policy. What I typically find is that I can beat these direct companies both in coverage quality and price. In my experience, I have lost only one customer to a direct writer. She saved herself a few bucks a month but lost a very solid auto policy that had coverages her new policy doesn't. Think about things such as loss of income in the event you must attend a trial. Does your policy cover legal expenses? Or how about coverage for the belongings you keep in your vehicle, or customized equipment on your vehicle? Every company offers a different policy, so you can't really always compare things 'apples to apples'. That is where my job comes in. I try to find the best possible company and policy for each client's individual situation, at the best possible value.

I am a Colorado broker, but write in a number of other states as well. Jedi, I noticed you are in VA. I have a sister and brother-in-law out there, and I wrote them with Travelers. They are very competitive in VA and I suggest that you give them a try. A few other companies you should consider getting quotes from are Allied, The Hartford, Fidelity, Safeco and Electric (not certain Electric is in VA). If you need risk insurance, try Mendota and Victoria. If you are in a high income bracket and have a million dollar plus home, try Chubb and Sons or Encompass. Use the services of a broker...and if you don't like him or her, just call another one. Some of us are definately better than others.

Lastly, understand the difference between an agent and a broker. An agent, or captive agent, works solely for the insurance company he or she represents. Companies such as Farmers, State Farm, Allstate, and American Family use captive agents. Brokers, or independant agents such as myself do not represent an insurance company, we represent the client. A good broker should have at least 4 to 5 well-established companies available to compare policies and rates. I started my career as a captive agent, and it really sucked having only one product and price point. Now I have over 50 commercial lines and nearly 20 personal lines companies to work with. It's pretty hard to beat a good broker.


Hope this helps you.

Peace~

 

[QueBert]

1. I have heard mixed things about it, biggest complaint was dealing with it if you got in an accident.

2.Don’t know, I ended up with AAA. (also you them for home)

3.I would never use broker, that’s just adding a middle man that needs to be paid too.

You could also try Mercury Insurance they have been the lowest on and off for me.

As a few others already stated, brokers are experts at what they do, so they'll save you $$$. Yes they get paid, but they save me cash, I can't honestly expect them to save me money for free now can I? When you need something done you get the help of an expert if you want it done right. I would never get insurance directly. My broker has always saved me money, plus they know their shit. The one time I didn't use a broker I got screwed on coverage. I thought I was getting an awesome deal, but if I had ever gotten into a wreck with a nice new BMW or Benz I would have been homeless from getting sued because my insurance would have covered nearly enough to pay for it. So now I save money and have piece of mind.

 

[Gothgar]

I used a broker before and was happy with it.

 

[TubeTote]

Thanks QueBert, that is how my clients tend to feel. You would be amazed at what I have seen...people with million dollar plus homes with auto coverage suited for a renter! No lies, this is VERY common.

Right after I switched from being a captive agent to a broker, I wrote a new home and auto for my parents. They had a huge claim about a month later. Had they have still been with Farmers, they would have been out thousands of dollars as the policy did not have enough mold coverage. They were so happy with the handling of the claim that they will never switch to another company (Encompass Elite).

I can't say anything about Costco's product since I have never really looked at it, but if the product is direct then I would suggest staying away from it unless you really know what you're doing (like you have written insurance previously).

EDIT: ABOUT INSURANCE.COM - Don't use this to get your rates! Call a broker. Believe me, the online raters are not always correct, and are sometimes absurdly off. When getting your quote from a broker, they will ask for your SSN...believe it or not, credit plays a huge factor in insurance rates. If you get any quotes without supplying your SSN, don't expect them to be accurate at all.

Peace~

 

[JEDI]

TubeTote,

1) your license is in CO, but you wrote an insurance policy in VA for your sister?

2) can you recommend any brokers in Northern VA?

 

[TubeTote]

Hi Jedi,

Actually, I'm licensed in all 50 states. This is another huge advantage I have as a broker, and is mainly due to the fact that my affiliate, or parent company, has been around for over 70 years. Over time, the need comes to write out-of-state policies. This usually stems from an account where the client owns property in another state, or has residency in more than one state. Another reason is a commercial entity with multiple locations. Once one broker in an agency acquires a state license, that license is applicable to the entire agency. The other factor is that the broker must be appointed by the insurance company to sell policies in that state. Some companies don't like to appoint out-of-state agents, unless there is good reason. This is because licensing is an expense for both the agency and the insurance company.

Writing out-of-state policies is a great competitive edge, but it comes with a price. We, as brokers, must be familiar with the laws and regulations in whatever states we are writing in. Failing to do so can end us up in a serious court case, so this is not taken lightly. For this reason, I concentrate my business practice to the mid to south western states. I am familiar with this region and travel it often, allowing me to visit my clients and keep things more managable. Writing the policy for my sister and brother-in-law in VA was sort of an exception, but I found VA to be a relatively easy state to write in with laws similar to ours. While I can't recommend any particular agents or brokers by name, I would suggest working with a 'Trusted Choice' agency. Here is a link that will help you find a broker:

http://www.trustedchoice.com/consumer/index.aspx


Give a broker a shot and see what he or she has to offer. They should be knowledgable and be willing to explain your options and coverages to you in plain English. If the broker is not willing to take the time to do this, find a different one, because that is what many of us pride ourselves on. A sign of a caring and professional broker is that they will ask a LOT of questions (LOL). Worst thing that can happen is you will be much better prepared in the event you choose to use a direct writer.


Peace~