Personal Finance

insurance business act like telcom...

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  • Jun 4th, 2016 11:49 am
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[OP]
Deal Addict
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Dec 4, 2007
4035 posts
1695 upvotes
Quebec

insurance business act like telcom...

i dont know for you guys, but i have realize recently that car and house insurance company start to do the same than telcom company.

they keep raising each year until you call in to complain or to threat them to change insurance company.

i remember in the past, they used to lower by themselves your invoice because of "good" customer...i think this is a thing of the past.

personally, i paid more than 3000$ per year for 3 cars and 1 house, never claimed anything, they just make money with me.

anyway, i have called few other company and saved 600$.
4 replies
Deal Fanatic
Apr 16, 2007
8008 posts
3305 upvotes
Financial District B…
Insurance companies, businesses, orgs, reserve the right to evaluate and re-evaluate risk factors yearly, quarterly or as much as they want and adjust cost factors to suit policies.
Their main purpose is risk management and to mitigate financial losses. Any business that entails a risk management component pretty well operates the same way.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
Sep 7, 2004
1595 posts
593 upvotes
Toronto
Have you actually been successful at getting them to lower your premiums by threatening to switch? I recently switched my providers due to about 3 years of 20% increases to my home insurance premiums. This year instead of lowering my auto premium they increased it by $100 through no fault of my own and that was the last straw for me. I got some letter explaining that due to external broader factors the rates were going up. I found another provider who was offering much lower rates for almost identical coverage and promptly dropped my original but while I was talking to them to cancel they didn't try to stop me. Not even a counter offer.
[OP]
Deal Addict
User avatar
Dec 4, 2007
4035 posts
1695 upvotes
Quebec
exactly, they dont care about loosing you. there is no "retention" department. they will not lower the premium. Like mike says, they calculate their risk and thats it. so the best thing we can do as a customer, is looking for a cheaper insurance company.
Deal Addict
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Apr 2, 2010
2158 posts
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GTA
Normally in my experience the only way they reduce insurance is by increasing deductables or setting lower automobile usage. No actual negotiable discount.

This is from my state farm and certas experience.

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