$3100 Premium Calls and Says $1400 Less

[URDRWHO]

I have a long time client that has a nice house, a nice pool, a Jaguar and a Lincoln. He gets a discount for HO & auto with same company and multi-car discount. He has a personal umbrella packaged in there.

So two days ago I get a call and he says that he went into AAA and they can do the same thing for $1400 a year less. Hm? Ok I know insurance companies can buy the business from time to time, appetites change and premiums are competitive. But I am 100% more than AAA or the other way AAA id 50% less seems a bit odd.

SO I ask if it is the same coverage and he said the AAA agent copied his policy. I said send me the email quote when you get it.

Yesterday I got the quote. I can't even go into all that wasn't comparing apples to apples but I'll give the top few.

Auto
Current = collision on both cars
AAA = no collision on Lincoln

Current = full tort
AAA = Limited Tort

Current = glass coverage
AAA = no glass coverage on either car

PD liability
Current = $500,000
AAA = $100,000

Home
Dwelling replacement costs included in current and AAA
Current dwelling = $365,000
AAA = $290,000

Current = masonry
AAA = frame
**** It is not a frame house.

Liability
Current = $500,000
AAA = $100,000

I called the insured and he said that the house appraisal is $290,000 and I had to go into the but replacement isn't the house appraisal. Over the past 25 years I've had this guy with multiple different companies, I've prepared enough replacement cost estimators to know that $290,000 wouldn't cut it. I don't know if AAA makes their agents do a replacement cost estimator or if they send an inspector at a later date and at that time the replacement cost is estimated. I have some companies that send the inspector but I am usually very close to the inspectors replacement cost.

Current = all things from refrigerated products to Jewelry, etc. is higher than AAA quote.

Umbrella
Current = $1 million
AAA = $0

From what I understand, AAA writes on different paper in different States and maybe their policies vary but one thing for sure ..... the agent didn't quote apples to apples. IS it that hard to read Dec pages?

 

[Norwayguy]

I don't sell P&C but couldn't you say let me compare apples to apples to AAA and show your lower premium then explain the differences of what the AAA agent did.

 

[djs]

Why was he shopping in the first place? My guess is he feels his premiums are to high, perhaps he thinks his coverages are to high.

Don't worry about the AAA agent, find out why he shopped you and resolve that issue.

Dan

 

[URDRWHO]

You are assuming the other agent explained the differences but they didn't and my client was silly enough to not look. They haven't jumped ship on me and I can cut to the bone like the other quote. I ran a quote and I would have a lower premium and still have more coverage. But I won't (can't) lower the replacement cost on the dwelling and there are other things I won't lower. I'll walk before I put myself in an E&O bind. I don't sell premium I sell coverage.

Just a small ranting about agents that somehow say they are giving apples to apples, people trust them and they trust something that is not real.

I don't sell P&C but couldn't you say let me compare apples to apples to AAA and show your lower premium then explain the differences of what the AAA agent did.

 

[agent40047]

I've lost several to AAA just because of pricing. Most have come back because of service or a bad claim experience. Stick to your scruples. If they need to venture out and test the market, they'll realize your value. And then they will tell others how wonderful you are!

 

[URDRWHO]

I've done some research and at a time of claim is when people get upset. Over the past 28 years the guy has had numerous HO and AO claims. He said it himself, my companies always paid promptly and without problems. There are times he is at the inspections station and can't find his financial responsibility card. I email them to the garage as we are speaking. He calls his membership place and he'll possibly not get those cards so promptly.

Yep sometimes those very very low rates are low for a reason.

One thing I like about my commercial clients is that they understand (most of them do) that it all comes out at the time of a claim and many were screwed in the past by some agents low ball rate.

I can go on my State Dept of Ins site and look at the complaint ratios to market share. Plus it shows complaints for claims and underwriting. Kind of handy because you can look back for multiple years and certain companies have a long arm of bad ratios.

I've lost several to AAA just because of pricing. Most have come back because of service or a bad claim experience. Stick to your scruples. If they need to venture out and test the market, they'll realize your value. And then they will tell others how wonderful you are!

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It kind of happened when he went into talk to a travel agent at the membership place and someone approached him. He said what the heck...ok I'll email you the policy to quote from.

Why was he shopping in the first place? My guess is he feels his premiums are to high, perhaps he thinks his coverages are to high.

Don't worry about the AAA agent, find out why he shopped you and resolve that issue.

Dan

 

[Norwayguy]

You are assuming the other agent explained the differences but they didn't and my client was silly enough to not look. They haven't jumped ship on me and I can cut to the bone like the other quote. I ran a quote and I would have a lower premium and still have more coverage. But I won't (can't) lower the replacement cost on the dwelling and there are other things I won't lower. I'll walk before I put myself in an E&O bind. I don't sell premium I sell coverage.

Just a small ranting about agents that somehow say they are giving apples to apples, people trust them and they trust something that is not real.

My reasoning is to show the customer that what the AAA guy showed was not apples to apples and with you that premium would be X.....and here is where he cut corners on you...I feel if you just say look he is cutting corners and come back with your same 3400 premium it does not mean as much as look when I quote what he quoted it only comes to 1400 and this is where he is leaving you uncovered and what he left out of his apples to apples comparison if he is this dishonest or loose with your coverages now where will you be come claim time.

 

[F150]

when the client questions the replacement on the house, sit down with them, and do the estimator right there with them.....then there are NO doubts

 

[URDRWHO]

Aside from the estimation I use through the company used by the brokerage I also use a free online system. The online system to build a house like theirs is
$392,020.00. Now if they have a total fire, they aren't going to have as much foundation / excavation as that of a new carve out in the ground. The cost in new house foundation / excavation is $30,000. Remove the $30,000 from the cost estimator and you are at $362,000. Plus on the cost estimator I was being a bit lenient in areas that I probably should have rated 2 but I used 3.

when the client questions the replacement on the house, sit down with them, and do the estimator right there with them.....then there are NO doubts