BEWARE: Johnson Auto Insurance Raises Rates by 40%

[meme0123]

I did an online quote for car insurance with Johnson Inc. (they give discounts to employees of a number of companies). The online quote required me to input all of my details including details of exactly what coverage and amounts I wanted the quote to be based on. The final internet quote came to $1022.

When I called them to obtain this insurance I was told the true price was $1399 = 40% HIGHER !!! When I asked why there was such a huge difference the woman said: "I don't know - probablye you put in for NO liability, NO collision and NO comprehensive coverage". As I said to her "why would I do that for a brand new 2009 car?" I printed out the exact worksheet for the quote with all the coverage I selected and the internet quote but she refused to even discuss it. When I spoke to someone else who claimed they were a "supervisor", she couldn't explain the difference either and said she'd call me back. She never did call back.

It would appear that Johnson Inc misleads people by providing decent online quotes only to increase their rates when you actually go to purchase the coverage. BEWARE because you can simply click on a button when you do the quote to actually go ahead and purchase the insurance!!!

[peter__p]

The quote given on line was for liability only as i was told when calling in to purchase, they deliberately do that to attract business i guess. It happened to me 2 years ago the exact same scenario. It was just a waste of time for both parties.

[COSMIC5]

Not nice!

[Insurance-Broker]

There are many tricks they play do to get you in!

One more reason to deal with a broker and develop a personal relationship!

[deuce]

^^
until you pay your broker and the money never makes its way back to the insurance company
or until the broker says youre insured and then doesnt get around to filing the paperwork

[dealmeone]

Not to try to defend Johnson, but Allstate did exactly the same thing. They send out fliers that claim huge insurance savings, which are only meant to get you to call about the real cost which is always much higher. They always find some excuse to quote you a higher rate, no matter what your circumstance is. They are liars and they know it. They just assume that we don't know it.

A sudden increase in premiums is often just the company trying to pass on the losses they took on investments onto YOU. YOU pay for their bad choices and their bosses get huge raises and bonuses. They do not care about you.

[Insurance-Broker]

^^
until you pay your broker and the money never makes its way back to the insurance company
or until the broker says youre insured and then doesnt get around to filing the paperwork

This can be easily avoided. Pay your first payment on a credit card and rest on a payment plan

[meme0123]

this lies and deception fool a lot of people. Firstly, I was of the understanding that liability coverage is mandatory in Ont (I could be mistaken).

Secondly, when you do a quote on Johnson's website there is actually a button to click on to buy the insurance right there and then. Since you've entered all the details for full coverage and they've given you a price, one would assume that if you buy based on that then that's what you're getting. The documents come and some people don't carefully review them or don't fully understand them because insurance is so complicated and come to find out when they have an accident that they really have no coverage. (Or even worse, what if you have a claim after you purchase online but before the documents even arrive in the mail!)

This practice is really terrible and proves how crooked they are! All I can say is DO NOT USE JOHNSON FOR ANY TYPE OF INSURANCE and Buyer Beware with all others as it seems to be a very crooked industry.

[Avatar]

LOL. I'd been with Johnson for 4 years and recently they increased my premium for several hundreds and I have a clean record. I called and was told that they increased the premium for everyone. So I checked online for quote.

Tried RBC and Statefarm kept asking me for a correct address. I just want to get a quote first. So I end up getting it online from Belairdirect. Excellent price should have been with them before. Price I obtained online is exactly the same I'm paying.

[dealmeone]

LOL. I'd been with Johnson for 4 years and recently they increased my premium for several hundreds and I have a clean record. I called and was told that they increased the premium for everyone. So I checked online for quote.

Tried RBC and Statefarm kept asking me for a correct address. I just want to get a quote first. So I end up getting it online from Belairdirect. Excellent price should have been with them before. Price I obtained online is exactly the same I'm paying.

You are paying for the losses that they have taken on their investments. It has NOTHING to do with your driving record or payouts for claims. They are in a business where they can write money and that is exactly what they are doing.

[J8]

I'm with Johnson's and I've been happy with the rate I pay for my car (3 years). I haven't seen any increase on my rates...if that changes though, I will shop around for something better. I do check online from time to time, and Johnson's rates are still cheaper in my case.

[dealmeone]

I'm with Johnson's and I've been happy with the rate I pay for my car (3 years). I haven't seen any increase on my rates...if that changes though, I will shop around for something better. I do check online from time to time, and Johnson's rates are still cheaper in my case.

If you do have more than one claim within a 48 month period), Johnson WILL both increase your premium (by at least 10% as they take away your 5 star safe driving rating) AND will raise your deductibles. This is effectively a double increase.

It doesn't have to be much of a claim, like a typical collision either. If you are so unlucky as to get a cracked windshield, within a 48 month period, Johnson WILL increase your premiums too. Even though such a claim is covered under the "comprehensive" portion of your policy.

If you don't believe me...check with them. I did.

[weedb0y]

LOL. I'd been with Johnson for 4 years and recently they increased my premium for several hundreds and I have a clean record. I called and was told that they increased the premium for everyone. So I checked online for quote.

Tried RBC and Statefarm kept asking me for a correct address. I just want to get a quote first. So I end up getting it online from Belairdirect. Excellent price should have been with them before. Price I obtained online is exactly the same I'm paying.

My brothers insurance went down this year with Johnsons

[Panzer505]

omg, johnson just increased my rate, i have clean record for 3 more years and upgrated my driver license last year but they just increased my premium payment anyway, saying this is for everyone BS!

[rems]

FYI insurance companies are raising rates across the board. Experience has worsened in the industry as a whole. Combined with poor returns on investment income, that warrants a raise in premiums. (remember it's still a business. They deal with risk...would you settle for 2% return on your money if you're taking on a high risk venture?)

That doesn't mean that EVERYONE gets an increase. Depends on the insurance company and how they wanted to raise their premium volume. Some can increase it across the board. Some can choose to target specific locations. But all these changes have to be approved by the governing body (FSCO if you're in Ontario).

And yes while you, yourself, has had no claims and have a perfect driving record, there are those that do not. And insurance transfers all the risk to the insurance company to pay out the claims. And in return you pay a premium to them. That premium should cover claims, expenses and profit. If any of those things go up, so should the premium no?

As for the OP, Johnson should correct their website to reflect their true rate.