Allstate Buy's Esurance

[Crabcake Johnny]

No accidents. No tickets. Own my car. Around 8,000 per year put on it. My wife and I deserve and will always get the absolutely lowest rate around. Doesn't matter to me. It's 15 minutes and a phone call to switch.

I was with Progressive for years. They hit me with like a 30% increase stating the "rates in my area went up." I simply replied "cancel it."

 

[ctdavid1]

Allstate also bought Answer Financial...which is an online brokerage for all of their competition. So they are telling their agents they have to stay captive but they are going to make money selling State Farm/Progressive/GEICO/Esurance et al?? I forsee alot of agents selling their BOB now and heavy recruiting to have college drop outs running those agencies. They have no intention of integrating the business or the technology so this was purely a move just to inch closer to State Farm and please shareholders. This probably will not effect Esurance rates and more likely will effect Allstate business having all that piss poor risk on the books now ...and that is going to have alot of Allstate agents fuming. Mark my words.

 

[ABC]

This is a big move. I wonder if they are going direct in certain areas.

 

[CaptiveBroke(r)]

Another obstacle for Allstate agents to overcome.

 

[Crabcake Johnny]

I guess the largest obstacle would be actually being an Allstate agent.

 

[djs]

Really not much different than Farmers buying 21st Century. For people like John who don't like dealing with insurance agents, it fits. These anti-agent clients aren't going into the Allstate office anyway.

The bigger message here is direct companies (esurance, 21st Century, Progressive, Geico) are having a tough time going direct and have had to find ways to make it work as part of a bigger picture.

My guess is this is true in lines like health insurance as well. A lot of people don't want to deal with agents, just buy it online. It doesn't work as well as it sounds.

It will be interesting to see how this plays out over time.

Dan

 

[BTFuzz]

No accidents. No tickets. Own my car. Around 8,000 per year put on it. My wife and I deserve and will always get the absolutely lowest rate around. Doesn't matter to me. It's 15 minutes and a phone call to switch.

I was with Progressive for years. They hit me with like a 30% increase stating the "rates in my area went up." I simply replied "cancel it."

You are exactly the kind of policyholder that belongs with these substandard companies...I sure as he11 wouldn't want that attitude on my book....sounds like Zig hijacked your profile.

 

[Guest]

You are exactly the kind of policyholder that belongs with these substandard companies...I sure as he11 wouldn't want that attitude on my book....sounds like Zig hijacked your profile.

Your right, cheapest isnt the best when it comes to insurance!

Funny how he is a health AGENT but wont use a P&C agent.....

 

[Crabcake Johnny]

I've got a car worth $2,000 that sits in the driveway. I work from home and my wife doesn't work.

At $77 per month I pay for the entire value of my car every 25 months so yes.....I'm not paying 1 cent over the rock bottom cheapest rate I can get.

I'm 44 with zero accidents. Should say something. I should be paying $20 a month. And trust me, at $77 a month if I find $70 I'm cancelling and going with them.

With health insurance I "could" rack up $100,000, $500,000 in medical charges. What can I rack up for auto? The value of my car. Now....IF I actually CAUSE an accident it's a different story. I have no such worries.

What's my PIP anyway? $2,500. My max? $40,000. So if I ever caused a lot of of damage I'm screwed anyway. To me it's worth next to nothing - $20 a month.

 

[BTFuzz]

Your right, cheapest isnt the best when it comes to insurance!

Funny how he is a health AGENT but wont use a P&C agent.....

Probably pi$$ed too many of em off....these Internet/direct companies always have unstable rating. Someone has to pay for Flo, the lizard, etc.
- - - - - - - - - - - - - - - - - -

I've got a car worth $2,000 that sits in the driveway. I work from home and my wife doesn't work.

At $77 per month I pay for the entire value of my car every 25 months so yes.....I'm not paying 1 cent over the rock bottom cheapest rate I can get.

I'm 44 with zero accidents. Should say something. I should be paying $20 a month. And trust me, at $77 a month if I find $70 I'm cancelling and going with them.

With health insurance I "could" rack up $100,000, $500,000 in medical charges. What can I rack up for auto? The value of my car. Now....IF I actually CAUSE an accident it's a different story. I have no such worries.

I rest my case...