We Insure You with a Wink, She Said

Summary

The author describes a challenging experience with updating their insurance policies, resulting in a switch from Geico to Allstate, and then back to Geico, due to issues with customer service and trust, while also noting significant changes in the home insurance industry.

Abstract

The author, who has a preference for redheads and is half-Irish, recounts their annual routine of searching for insurance quotes for their home and two vehicles. Initially insured with Geico, the author faced a $200 increase in home insurance premiums, prompting consideration of a switch to Allstate after receiving a mailer advertising a significantly lower rate. However, the quoted rate from Allstate increased after the initial offer, and the agent's lack of knowledge and contradictory information led to a breakdown of trust, causing the author to return to Geico. The article serves as a cautionary tale about the importance of trust in sales and highlights the changing landscape of home insurance, with companies like Allstate moving to online models and others like Nationwide imposing stricter requirements for insuring older homes.

Opinions

The author is dissatisfied with the unexpected increase in home insurance costs from Geico.
The initial Allstate offer via mailer is seen as a "loss leader," which is misleading.
The Allstate agent's lack of product knowledge and inconsistent information undermined the author's confidence in the company.
The author believes that trust is paramount in sales and that the Allstate agent's behavior was detrimental to building a customer relationship.
The author is critical of the insurance industry's trend towards making it difficult for customers to obtain homeowners insurance, citing age restrictions on homes and stringent inspection requirements.
The author expresses skepticism about the future of home insurance, predicting that it will become increasingly challenging for consumers to navigate.

And then she sent the quote

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Okay. I’ve always been a sucker for redheads. I’m half-Irish. What can I say?

Searching for insurance quotes for my house and our two autos is something I do every year. What follows here, though, is a warning to all. But you’ll have to read this short story about my search to get the warnings.

All my insurance was bundled with Geico. Home insurance was $1350/year and auto insurance for both vehicles was $700/6 months. Not bad. Right? Then I saw that Geico increased my home insurance by almost $200.

“Why the increase?” I asked.

“Well sir, your home’s replacement value/cost went up by $9000.”

Then I got a flier in the mail three weeks ago from Allstate claiming they would be able to insure my property for $550/year. Now that’s a hell of a drop from $1500/year and seeing as my mortgage company makes the insurance a part of my monthly payment, this would work.

So I called. Of course, the mailer was a “loss leader.” My final quote was $800/yr. I had to change over my auto insurance, “bundling” they call it. Of course. I have always found it odd that you need to spend more money to get a break, as opposed to giving a client the best price and the best insurance possible. But that isn’t how this insurance game works, is it?

So this will save us several hundred dollars a year, and lower our monthly mortgage payment by at least $50/month. Cool beans, eh?

Here’s my one issue with this entire deal. The agent was lost, said things I knew were incorrect, and she had to have her manager intervene twice to even keep me as a client. This probably won’t last because … she has lost my trust.

You see, in sales, trust is everything. Telling me I couldn’t obtain homeowners insurance unless I insured my vehicles with them was a mistake she made. She had already offered me the insurance without the vehicles, albeit it would be about $125 higher. When I asked her why she contradicted herself and pointed this out, she said because my 15-year-old home is too old to insure on its own, that I must insure my vehicles with her. Evidently, she didn’t know this and apologized. Seriously?

This is how you lose business in sales, not knowing what the hell you are talking about. She doesn’t. So I re-upped my auto insurance with Geico and will move all my insurance within the next 8 weeks. For now, I do have a $800/year policy.

Now for the warning to y’all.

Insurance for homes is undergoing a huge change. Be prepared to not have the ability or desire to change what you have. Insurers are in the process of changing the rules because their profit margins aren’t where they want them.

Allstate is eliminating agents and offices and is going to an entirely online business model. They are closing offices and losing agents and business. If you use them, be prepared.

Nationwide is making it a nightmare to obtain homeowner's insurance. As one agent told me (her agency sells Nationwide) they as a company don’t want new clients, so they make it impossible to get it. They require aerial photos of the entire home and property, including close-ups of the roof. They will not insure any home with a roof over 10 years of age, Thus, you would have to have a new roof installed and/or obtain signed affidavits from roofing professionals that the roof is okay.

This agent and another also told me that some companies are now refusing to insure homes over 20 years of age. Fun stuff!

So buckle up folks, getting insurance on your home is about to become an extremely hard thing to accomplish.