How do they price insurance?

[lsbrodsky]

I have an agreed value policy with Nationwide and was distressed at the upcoming renewal price increase, so I shopped around. I obtained a new appraisal and concluded that Progressive was my best choice. But, I obtained quotes from 3 places, with exactly the same coverage, and received three different quotes varying by as much as 20%.
I have no other policies with Progressive and none of the three could explain to me why the variation in quotes. The lowest quote ended up being my local insurance agent so I will continue doing business with my local agent. They weren't sure I wanted to switch because of built up vanishing deductible, a joke when it comes to a trailer that has been smashed by a tree or a truck! I hate the insurance industry!!!
Larry

[SteveSueMac]

Here’s a good overview (I don’t know and am not affiliated with the source) on how Insurance is generally priced. It’s complicated - exponentially moreso because each state is regulated differently - it’s like 50 countries sometimes.

A couple other things to consider:

First - Insurance is a community bucket of cash so the contributions of all make sure no one person has to manage a big loss on their own. Due to no fault of any individual - if the total community has experienced big losses (think catastrophic weather/hail/flood events that wipe out 20 RV dealer lots’ worth of inventory) - everyone’s rates go up.

Second - premium doesn’t matter as much as Claim service. Say you can save 43% on your premiums by spending 43 minutes with Carrier X. Instead of $1000/yr you pay $570. Good deal, right? Not if they unfairly deny/exclude claims. Suffer a $20K loss 5 years in with an unscrupulous carrier who denies your claim - you’re out the damage and $2800 in wasted premium payments.

Having a local broker you trust is critical. I work in the industry - it’s too complex - I use an agent. Highly recommend finding someone you trust, who knows the carriers, deals with many of them, and can tell you who’s going to be there for you when it matters. More important than premium in my opinion.

Good luck!

https://www.rv-dreams.com/rv-insurance-rates.html

[lsbrodsky]

Thanks for the link, some interesting stuff. I think many of us understand those variables. It is still hard for me to understand how agents for the same insurer quote such different rates for the same coverage. But, it does not matter. I just picked the lowest quote which happened to be my local agent. I do not view them as worthy of my trust after my homeowner's experience with Hurricane Florence, though.
Larry

[Teton Stream]

I have been a USAA client since I joined the Marine Corps back in June of 1976. They have been outstanding in service and when it comes to auto and home, price. I naturally called them for the past three Airstreams I have owned (19', 20' and 23' FC's). I was just looking at my renewal for 2017 FC 23' FB with $1,000 deductible for an annual premium of $3,980. I haven't shopped the insurance but am curious what other's with similar rigs are paying for similar deductible.

[lsbrodsky]

$3980 did you say? For what, home, auto, and Airstream? That is way too much for an Airstream alone.
Larry

[Nelson428]

I’d shop around that sounds very high to me.

[Teton Stream]

lsbrodsky and Nelson428, you say its high. What are you paying and what are you insuring?

Thanks

[lsbrodsky]

I am paying $540 per year for $59,000 agreed value, $1000 deductible.
Larry

[uncle_bob]

Hi

Keep in mind that insurance costs can / will / do vary a *lot* state to state and within regions of a state. I've seen 5:1 price variation moving the same vehicle, insured by the same company, for the same amounts, from one location to another. In both areas, their pricing was competitive.

Bob

[Nelson428]

Originally Posted by Teton Stream

lsbrodsky and Nelson428, you say its high. What are you paying and what are you insuring?

Thanks

I sent you a PM, with details.

[Lumatic]

Be careful your "agreed value" policy actually is one. I talked to one local agency who gave me a quote for an "agreed value" policy but when I talked to the underwriters it was not. Local agents are not always familiar it seems with an agreed value policy.

[SYC2Vette]

Originally Posted by Teton Stream

I have been a USAA client since I joined the Marine Corps back in June of 1976. They have been outstanding in service and when it comes to auto and home, price. I naturally called them for the past three Airstreams I have owned (19', 20' and 23' FC's). I was just looking at my renewal for 2017 FC 23' FB with $1,000 deductible for an annual premium of $3,980. I haven't shopped the insurance but am curious what other's with similar rigs are paying for similar deductible.

$1550.00/year for $75,000 Allstate Insurance. Includes some discounts. Be very careful of "cheap" insurance policies and make sure you are actually covered for even obvious things like hail damage.

[lsbrodsky]

FCIS, the advertised provider for Airstream, uses Progressive. USAA uses Progressive. As I said in this thread, I went with Progressive though my agent had a lower cost to me than either FCIS or USAA and the policy is not different. Before that I had Nationwide, same coverage, but their rates increased substantially. Policies are pretty easy to read and understand these days. In my home and auto experience, State Farm and some others have always been more expensive. I determined last year, with home hurricane damages, State Farm's more expensive coverage, on my mother-in-law's home was really no better than lower priced options. Of course, in the end you want an insurance company that will pay your claims, but I have difficulty understanding the wide variation in cost for the same coverage.
Larry

[uncle_bob]

Hi

Any time you buy something from somebody who bought it from somebody else, there will be a markup. Ten percent is not at all uncommon ....

In addition, all these outfits file "schedules" with the state insurance regulation empire. Each reseller likely has a different schedule of costs / rates. As the breakpoints in these schedules move around, another 5% or so is not unusual. Indeed Progressive it's self mainly wins the "price war" because their own schedules have a lot finer grained steps than are typical in the industry. There is an administrative cost so it's not a win / win.

Even when I buy insurance from a given outfit, the coverage does change as I go through this or that resell process. Sometimes that works to your advantage ( = the coverage is better). Indeed some of that is in the policy, some of it is what sort of a hassle you get when things go tilt ....

Lots of variables.

Bob

[Teton Stream]

I called Progressive and gave them my info on my FC 23FB (In full disclosure I originally was in Wyoming when I insured it and now have the rig in Maryland) The Progressive quote for one year, $1,000 deducible was $582 compared to USAA at $3,980. I owe USAA a call to figure out their quote for I believe they use Progressive as their underwriter/provider. Pays to call around.

[jcanavera]

I bought my Progressive policy for my then newly built 2004 Classic slide out. Initial premium was about $65 monthly. First 5 years was replacement value for like kind if the trailer was totaled no matter the price. After that first 5 years it was set as the agreed upon sales price of the trailer prior to my trade in. So we have 70K worth of insurance on my Classic Slide which will reach its 16th birthday in a week from now.

Premium has crept up over the years and is now $95 monthly. I have a disappearing deductible clause so there would be no deductible if I incur a loss or total loss. Personally I've always thought that if I had a total loss it probably would be storm damage rather than an accident. I didn't count on the fact that a year and a half after purchasing my Classic that a good friend would offer me inside storage in her garage. I've dodged a lot of storms by being in that garage!

Jack