Untangling insurance products?

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blaugranamd
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Untangling insurance products?

Post by blaugranamd » Mon Mar 20, 2017 3:02 pm

As per usual, something on this forum prompts me to investigate my financial situation further. This time it was my insurance after reading a thread about GEICO insurance rates. I haven't priced auto or motorcycle insurance in at least 5 years so I ran a quote and to my surprise they blew the water out of my USAA insurance to the tune of $267 per 6 month period or nearly 50% less for the same coverage. So I checked my motorcycle insurance and it came out to be $34 per year cheaper, not quite so grand. So I called up USAA to clarify my umbrella policy's minimums and since "private passenger vehicle" and "miscellaneous vehicle" have slightly different coverages. I could meet both, but then they told me something I was not expecting: for the umbrella policy, I have to use USAA underwritten policies for the base policies: in other words I couldn't use GEICO for auto and keep my USAA umbrella policy.

Is this the norm? I can see why it kind of makes sense, but it just caught me off guard. It now seems to cut my insurance rates on auto I'd have to look into transferring ALL my insurance products to GEICO (Home, Auto, Umbrella, Motorcycle) to make the switch. Not that this would necessarily be bad, just a headache. Has anyone else had to go to this length to change policies?
-- Don't mistake more funds for more diversity: Total Int'l + Total Market = 7k to 10k stocks -- | -- Market return does NOT = average nor 50th percentile, rather 80-90th percentile long term ---

mhalley
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Re: Untangling insurance products?

Post by mhalley » Mon Mar 20, 2017 11:45 pm

Remember that cheap is not always the way to go on everything. Usaa usually comes out as one of the top in customer satisfaction. Imagine if you had a claim and had to deal with problems getting the insurance to pay what they owe.
Looks like a recent jd power survey gave usaa 886 and geico 807 (out of 1000).
While not every umbrella requires you have their insurance with them, I think most of them do.Also, I believe umbrella requires certain coverages to qualify, how would geico know if you changed your usaa policy?

boglerdude
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Re: Untangling insurance products?

Post by boglerdude » Mon Mar 20, 2017 11:54 pm

Yes that's the norm, for the umbrella provider to want at least your auto with them. Since that's where you're most likely to put someone in the hospital, and they want their legal team in charge.

There are standalone umbrellas:
https://www.rlicorp.com/real-life-scenarios
and maybe Geico.

Motorcycle? :o Get uninsured motorist :)

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blaugranamd
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Re: Untangling insurance products?

Post by blaugranamd » Tue Mar 21, 2017 4:15 pm

Sure there's more than just money but after getting quotes on all 4 products it would save me $800/year to move insurance providers. That's as good chunk of change without losing a dime in coverage. I've read about folks having issues with both companies and I don't know that anecdotally better customer service is worth $800...
-- Don't mistake more funds for more diversity: Total Int'l + Total Market = 7k to 10k stocks -- | -- Market return does NOT = average nor 50th percentile, rather 80-90th percentile long term ---

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dm200
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Re: Untangling insurance products?

Post by dm200 » Tue Mar 21, 2017 4:28 pm

Yes, I believe it is the norm for an insurer to require that the umbrella policy and auto coverage be from the same company.

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