Ma Auto Insurance & the little, green lizard

Never in the history of the Massachusetts Professional, Independent Insurance Agent community, have five letters been so feared.

Not, “t-h-e-f-t.”

Not, “f-r-a-u-d.”

And no, not, “c-l-a-i-m.”

I am talking about “G-E-I-C-O.”

Not since my childhood Godzilla days, have I been so scared of a lizard.

For years they have advertised in our proud, Commonwealth and for years I have smugly told customers, “GEICO? They don’t even write insurance in Massachusetts!”

Nationally they don’t use Independent Agents, either.

They use call centers and service centers and they don’t write home insurance.

When you work with an Independent, Professional Insurance Agent you are working with someone who who has your best interest in mind. You are working with someone who will shop your insurance with many different companies to get you the best rate. You are working with someone who is your advocate at claim time. Who, at GEICO, works as your advocate? Who, at GEICO, sells multi-lines of insurance and shops your insurances with many different companies?

Like the chilly winds of our Massachusetts’ autums, it seems inevitable that GEICO is coming. When? I don’t know. 2009? 2010 at the latest, is my guess.

For now, it is up to the Independent Insurance Agent, to get the best rates for our clients, to package policies and to round accounts. It is time to save our clients money. It is time to advise and to advocate. It is time to demonstrate our value.

Rate Review Reality Check

Here we are, Massachusetts, 18 days into “Managed Competition.” Seems like 18 months.

The other day I was (sort of but not really) bragging about this Massachusetts Auto Insurance BLOG and I was told that my four posts were not enough. Shocked, I was told that I need to BLOG more.  BLOG more? “Dude, it’s a BLOG and you’re my insurance guy.” 

Besides still not being quite sure what a BLOG is (Wikopedia tells me that it’s a “Web Log”), I do know that our Agency has been going crazy learning new rating software, quoting & re-quoting auto and home insurance, applying new discounts and programs, sending out renewals, transferring customers, cancelling policies, writing new business and, probably, drinking too much coffee. 

However, and in an effort to BLOG more, I present a Rate Review Reality Check:

18 days into our new “Managed Competition” auto insurance system and , I think, MA consumers are doing pretty well.

I have, however, seen some very real auto insurance rate casualties:

We have a client that lives in Lynn that renewed last year for $1,168. This year: $1,357.

We have a client that lives in Dorchester that renewed two vehicles last year at $2,960. This year: $3,031.

We have a young married couple (licensed less than six years with 4 points & 10 points on their licenses) and their premium (two vehicles) went from $3,201 to $3,498.

So far it appears that new drivers, drivers with points, drivers that live in urban areas and those without a “companion policy” are the ones that are not going to enjoy the heavily advertised discounts.

Added Value

It seems to me that for the past thirty years, or so, Massachusetts insurance consumers and Professional, Massachusetts Independent Agents have been pushed around by the insurance industry. Enjoying “state set” auto insurance rates, Massachusetts bloated to the fourth highest auto insurance rates in the country and whithered to only 19 auto insurance carriers. I believe the handwriting was on the wall a number of years ago, Massachusetts auto insurance rates plummeted 26% over the past three years. As of April 1, 2008 Massachusetts moved to a “managed competition” system. This move has been good for most consumers with a statewide decrease in auto rates of almost 8%. The rate casualties seem to be those with 10 or more points on their license and new drivers.

With all the industry changes and as a small business owner, I have found myself working harder and working longer. My wife and three babies wonder who this tie-wearing, slightly stressed out, stranger is.  I continue to ask myself, as an Independent Insurance Agency: “Do we add value?” The emphatic answer: YES.

Unlike the Liberty Mutuals and The Amicas, we write insurance with many different companies. We represent our clients, as opposed to representing the companies that we place business with. We spend the time to find out which companies are the best fit for our clients. Some companies have more of an appetite for new drivers, some more of an appetite for the home and auto “account business.”

We are here for our customers whenever they have a claim problem or a billing question. We also offer free Registry of Motor Vehicles service.

We are Professional Insurance Advisors that have the best interest of our customers in mind. We offer multiple lines of insurance and as our customers lives change we are here to assist with all their insurance needs. 

Your Independent Insurance Agent should offer a lifetime of insurance products and services:

Parents put their newly licensed child on their auto policy, the child buys his first car, he moves out of the house and gets an apartment, he opens a business, buys an engagement ring, gets married, buys a home, has a child, buys life insurance, puchases a personal liability umbrella policy, gets rich, buys a vacation property, buys the ’65 Mustang Shelby GT350, and retires.

We are here to help every step of the way.