Can anyone in SC Tell Me how Competitive these Carriers Are?

[indienoise]

Hello,

I recently found this forum and looks like there's a lot of helpful info around, thanks so much for the insights while I've been lurking. Now I've got a question it looks like I'll need to ask myself.

About our agency, I am primarily a buy-here pay-here used car dealer and I've had my P&C license about 3 years. I initially wanted to go completely independent, but as I'm sure you can imagine, with no experience and a 60 hour work week already, I was simply not up to the challenges associated with opening my own independent agency. So I was able to come to an agreement with a local captive agent. I have the support and system in place that I need, and we are able to place a percentage of our business outside our captive company, which is good enough for me. We have a good product and I don't see ever exceeding that percentage, so I'm happy with it.

As you can imagine, most of our customer base is low income, and about 90% of my market is non-standard. This area is very competitive, especially with a lot of independents within a mile radius selling for a bunch of regional companies that are bottom-dollar on their premiums much of the time, but I consider them to be complete junk companies and would never consider placing business with them. But, I still need to compete based solely on price much of the time. So I'm picking up some non-standard (I already am using Progressive) and my next move is down to either Foremost or Dairyland. I know there is good potential for multi-line with Foremost, and that's a plus, but that's kind of secondary as my book is almost solely mono-line auto and I really need to focus on which of them is most competitive for auto in SC. So, I call upon you folks to see if anyone is currently, or was in the past, using them both and if you have any insights in comparing the two.

Thanks so much for any advice you can offer.

Josh

 

[indienoise]

Do you like them better than foremost? Any particular reason?

 

[insurance1822]

I'm not sure about your market but for non standard bum business you'll want Progressive, Infinity, GMAC, Foremost (Bristol West) Titan & Access. I honestly don't know why you'd even bothering writing this type of business. Sure some guys have large non standard books BUT jeez...it's just bum business.

I guess if you get them on EFT & they aren't coming to your dealership for service then why not.

 

[BlockO]

I have both Foremost and Dairyland in several states, but I don't know a thing about South Carolina.

Foremost is great for insuring toys other than auto (bikes, boats, snowmobiles, etc.). they compliment Progressive well when Flo isn't competitive. But Foremost auto is NOT competitive. Most of the auto quotes I've ran with them (in multiple states) are not even in the ballpark. South Carolina might be different though. I have no idea.

I really like Dairyland. They are very competitive in most states. but like most other non-standard companies, they only like insuring liability coverage. They're not competitive with comp and collision. Being a car dealer, that might be a problem for you if you want to be added as a lienholder.

 

[indienoise]

I'm not sure about your market but for non standard bum business you'll want Progressive, Infinity, GMAC, Foremost (Bristol West) Titan & Access. I honestly don't know why you'd even bothering writing this type of business. Sure some guys have large non standard books BUT jeez...it's just bum business.

I guess if you get them on EFT & they aren't coming to your dealership for service then why not.

I write as much standard as possible but our customer base at the lot doesnt lend itself to standard. Fully half my book is non us license and that business is very stable despite being non standard. Yeah there is a good bit of turnover. Relying on service and convenience for the rest of my retention as customers come in each month to make their car payment so it simplifies things for them. I am running a Titan branded storefront. Had a 75% close rate til we got a new business moratorium in SC on Titan. Don't know when its coming back unfortunately. Victoria is still good, just not killing it like I did with Titan. I have Progressive, it is ok. Moderate success. Everyone on here seems to talk up Foremost. It seems like the logical route. I just remember Dairyland being big in the nonstandard scene before we started seeing a lot of the junk out there now. Had tons of customers bring in Dairyland cards. Around the same time viking and peak p&c were big. I wonder if theyre no longer competitive these days..

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I have both Foremost and Dairyland in several states, but I don't know a thing about South Carolina.

Foremost is great for insuring toys other than auto (bikes, boats, snowmobiles, etc.). they compliment Progressive well when Flo isn't competitive. But Foremost auto is NOT competitive. Most of the auto quotes I've ran with them (in multiple states) are not even in the ballpark. South Carolina might be different though. I have no idea.

I really like Dairyland. They are very competitive in most states. but like most other non-standard companies, they only like insuring liability coverage. They're not competitive with comp and collision. Being a car dealer, that might be a problem for you if you want to be added as a lienholder.

Good to know. We don't require collision on sub 5k cars, but a big part of what im looking for is something that competes on collision with no prior insurance. Victoria does pretty well on liability only, but on cars we require collision on, i am often losing out to Greenville Casualty, ACCC, Direct General, First acceptance, and the like.

 

[BlockO]

I honestly don't know why you'd even bothering writing this type of business. Sure some guys have large non standard books BUT jeez...it's just bum business.

Sure, preferred/standard business trumps non-standard, but the non-standard market is not as bad as you make it sound. especially when an SR22 is required. drivers are more apt to keep their insurance active when they face a license suspension. plus non-standard companies surprisingly have lower loss ratio's.