If life comes at you fast, maybe you should worry about your auto insurance. Is Nationwide a good choice?

Is Nationwide on your side?

Car Insurance can be a pretty boring topic. That’s why you gotta love Madison Avenue’s attempt to make things more interesting. Such is the case with Nationwide Insurance’s “Life Comes At You Fast” commercials. From radio to TV spots, they’re always good for a laugh. I found out later that not everyone appreciates the lighter side of insurance – more on that below.

But the more important question is: how good is Nationwide auto insurance?

About the Company

Nationwide has a good reputation in the industry. Started in 1925 as Farm Bureau Mutual Automobile Insurance Company, Nationwide outgrew their home state of Ohio in a few short years.

As the name implies, Nationwide is now a big company. They currently insure cars in 50 states including the District of Columbia. They are the 4^th largest auto insurance company measured by premiums collected. According to their website, they are #106 of the Fortune 500 and boast over 35,000 employees.

With all the uncertainty with financial services companies, it’s important to know how strong Nationwide is. In March of 2008, A.M. Best rated Nationwide Insurance with an A+ for financial strength – it’s their 2^nd highest rating. From the looks of it, Nationwide won’t be going bust anytime soon.

Getting a Nationwide Online Quote

So with their reputation in the industry and their commercials that make me smile, I decided to get a quote from Nationwide. To save time, I recommend doing what I did. First off, I grabbed an online quote. Second, since it made sense, I called them on the phone with my online quote in hand.

To start, I grabbed my current auto insurance policy and matched coverages at their website. I input my personal info, then matched the coverages I have with my current policy.

One interesting thing: they apparently pull personal info from a state database. When I was an agent with a different company, we could grab some info from prospects, but it wasn’t as sophisticated as Nationwide’s.

Within a minute, I got back my car insurance quote. However, they did not automatically email me the quote. I guess they expect people to buy right then. Not me. I called instead.

Nationwide Call Center Quote

After waiting a few minutes, I got Jeremy on the phone. He told me he was in a call center  Amarillo, Texas. At the time of this quote, the others call centers were in Portland, Oregon, Des Moines, Iowa, San Antonio, Texas, and Lynchburg, Virginia.

My quote was not saved online, so Jeremy had to ask the same questions again. Despite the technical problems, he did a good job of not making it too painful. As he reviewed my coverages, Jeremy explained what each coverage did. In my mind, this is one of the agent’s most important jobs, so Jeremy passed that test.

Nationwide Positives: Service & Options

First off, Nationwide has both call centers and local offices to service their car insurance policies. I like that. If I want a local office, I can choose a local office. If I want extended hours with 6 days a week policy service, I can choose the call center.

Second, I like the policy options they offer. For one, they have ‘Accident Forgiveness’. In my case, it was an extra $24/term. That means they won’t raise my rates if I have an at-fault accident. Two, they have ‘Diminishing Deductible’. For another $20, I could get $100 off my deductible every year I don’t have an accident. That’s a great coverage for accident-prone customers.

Nationwide Negative: Price

Nationwide could not beat my current car insurance premiums. They were slightly higher even after they gave me a long-term credit for being with my other auto insurance company. According to my state rates, they don’t even show up in the Top-25 cheapest car insurance rates, so I’m not too surprised.

Not to say you won’t get a better rate, especially if you don’t live in Texas. As for me and my premiums, Nationwide was not on my side.

“Life Comes At You Fast” Commercials Drives Calls for Nationwide

So even though I won’t be switching to Nationwide this go around, I’m still impressed with their commercials. I even like them better than GEICO’s. Jeremy told me something interesting. He said people never call him to say they want a quote because they saw Nationwide’s commercials. But, he told me several people have called to complain about them.

I think that’s funny. I guess some people don’t have anything better to do than to harass some guy in a call center for a commercial that makes most people smile. I say, go back to your TV and stop bothering people. Such is life.

Quote Process: 8
(Scale 1-10: 10=the best)

Price: 4
(Scale 1-10: 10=Cheapest)

Customer Service: 9
(Scale 1-10: 10=the best)

Claims: *
(Scale 1-10: 10=the best)

Overall Rating: 8
(Scale 1-10: 10=the best)

Do you have your own experience with Nationwide Car Insurance? Leave a comment or write your own review.

Did I really save 15% on my car insurance by switching to GEICO? – My GEICO Review

For anyone shopping for car insurance, who hasn’t seen the GEICO lizard?

Probably about as many people who haven’t been to a grocery store. The talking Cockney gecko is about as well known as peanut butter and jelly. And to think, before 1999 – he didn’t even exist. Such is the power of modern advertising.

Stripping away the creative façade of cavemen, celebrity spokespeople and promises of 15% savings, is GEICO all it’s cracked up to be? Read on to find out.

About the Company – GEICO Review

GEICO, or Government Employees Insurance Company, is a popular car insurance company in the United States. Bought by Warren Buffett’s holding company in 1996, GEICO is now owned by Berkshire Hathaway. According to their website, GEICO boasts 8,000,000 policyholders as of 2007 – no small accomplishment for this business.

GEICO does not have an agency force in the community like other companies. Aside from the occasional offices in metropolitan areas, the majority of quotes, policy service, and claims work is handled over the phone via call centers.

As for financial strength, GEICO is strong. According to independent agency AM Best, GEICO rates a superior ‘A++’, their highest rating. Other services give GEICO a similar rating. According to those in the know, GEICO will be around for awhile.

Getting a GEICO Quote

Knowing their reputation, I wanted to get a quote from GEICO. To save time, I usually recommend what I did. First off, grab an online quote. Second, if it makes sense, call them on the phone with the online quote. Here’s how I did it.

To start, I grabbed my current auto insurance policy. Second, I jumped online, to fill out their questionnaire. I input my personal info, then matched my coverages to my current policy. GEICO shot back my quote 10 seconds after I clicked ‘Submit’ – very fast. Since GEICO’s price was much better than I’m paying now, I called them up.

GEICO Positives: Availability & Price

After being transferred to the right person, I started talking to Holly S. in Virginia Beach, Virginia. She told me she was in one of several call centers across the country. I called at night and, out of curiosity, asked her if someone would have picked up the phone at 3 am. According to Holly, she assured me GEICO would have answered the line.

Availability strikes me as a great positive for a car insurance company. If GEICO is willing to pick up the phone to give me a quote at 3 in the morning, then they’re probably willing to pick up the phone to fill out my claim at 3 in the morning.

GEICO quoted me a great rate online. Fortunately, there was no bait-and-switch when I called Holly in Virginia Beach. What they quoted online, they honored on the phone. That’s a huge benefit, especially as it relates to the integrity of their sales force.

One caveat to their pricing: GEICO seems to give a ‘best guess’ rate without asking for your social security number online. After you talk to them, they confirm the price. If your credit matches what you said online, then you get the rate. If not, the price probably goes up.

GEICO Negative: Pushy?

I had one problem with confirming my phone quote. Holly was a little pushy. She did not ask me about my personal insurance situation and went right for the close. This was a little unnerving to me as a former insurance agent. I would have liked her to walk me through the coverages, instead of just trying to take my order. Holly was definitely assertive, but she was polite.

What about GEICO’s Service?

I looked at complaint ratios at a few major departments of insurance. Consumer complaints are either average, or below average compared to other auto insurance companies. No company is perfect, but GEICO seemed to meet a basic level of service for their customers. On a claims basis, I felt comfortable carrying my car insurance with GEICO.

I ended up getting GEICO after shopping around for awhile. I’ve had them for over a year now (Sept 2009). I’ve called them a few times and they’ve been very responsive. I even dropped by their office in my town to re-add comprehensive to my truck. They were helpful and friendly. I didn’t like how they made me come by their office for that basic service. Seems like they could have sent out an agent to do an inspection. Oh well.

I can say this. They were extremely responsive when I got a new insurance card.

Did I save 15% on my Car Insurance by switching to GEICO?

Their reputation, availability, and price, all contribute to a good feeling of going with the gecko. As for saving 15% on my car insurance. When I signed up with GEICO, I saved +20% on my car insurance premiums compared to State Farm.

Way to go GEICO!

Quote Process: 10
(Scale 1-10: 10=the best)

Price: 9
(Scale 1-10: 10=Cheapest)

Customer Service: 9
(Scale 1-10: 10=the best)

Claims: *
(Scale 1-10: 10=the best)

Overall Rating: 9
(Scale 1-10: 10=the best)

Anything to add? Leave a comment about your experience with GEICO or write your own review.

Former State Farm Agent shops around: When good service isn’t the only thing you should look for in a car insurance company.

FULL DISCLOSURE:
I worked as an employee, as an employee of an Agent, and as an Agent of State Farm Insurance.  My dad is still a State Farm Agent.
————-

“Like a good neighbor, State Farm is there.”

That may be one of the best taglines in the insurance business. It hearkens back to a time when your insurance agent was just down the street. A time when you might drop by his office on your walk to the post office. It reminds me of a quaint town that may not even exist anymore. That’s the image ‘good neighbor’ insurance conjures up in my mind.

And believe me, they know it.

That’s why they’re now spending millions of dollars trying to convince young consumers they’re not just your father’s insurance company. They’re constantly targeting younger drivers. At the time of this review, a quick look at their main homepage revealed 5 people under 35. I was under 35 when I initially wrote this review – does State Farm have my business? More on that below.

About the Company

State Farm Insurance is one of the oldest auto insurance companies in the United States. Founded by a farmer, G.J. Mecherle, they’ve grown to be the largest private insurance company in the country. Boasting over 75,000,000 policies, they insure more cars than any other company on the planet. AM Best rates most State Farm Companies with a AA rating (very strong).

According to their website, State Farm consists of 13 separate financial services companies. They sell fire, auto, life, and health policies. They also market bank products and investments though the majority of their revenue comes from auto and home policies. State Farm is first and foremost an insurance company.

My Experience as a State Farm Policyholder

I’ve been a State Farm policyholder for as long as I’ve bought car insurance. My dad is still a State Farm Agent. I’ve had accidents, tickets, one reckless and a few cracked windshields as a State Farm policyholder. Overall, I’ve paid more money to State Farm than they’ve ever paid out on me – so I guess that puts them ahead.

Overall, I’ve had a positive experience as a State Farm policyholder. Even though I know a bit about car insurance, State Farm people were very helpful before I started working for them and while I learned the business. Typically, State Farm Agents and their employees know their stuff.

State Farm Positive: Personal Service

State Farm sells and services their policies through their network of 17,000 Agents. Usually, each State Farm Agent has their own office and support staff. I’ve had my insurance with a couple of different agents (besides myself). Both offices in Texas & Washington had superb service. If I had a question on my monthly payments, any coverages, or claim issues, the staff was outstanding.

Not every State Farm policyholder has this good experience. If you’re sold on State Farm but you don’t like your current Agent or their staff, then change Agents. To me, good service is the main thing you’re paying for at State Farm. If you’re unhappy with your Agent, then you’re usually overpaying – big time.

State Farm Negative: Price

Which brings me to State Farm’s #1 weakness: price. I live in Texas. In Texas, my rates are relatively high: Out of 50+ auto insurance companies doing business in the state, State Farm is #25 for price in my age group: Texas Rates.  From my experience and research, this is normal. For whatever the reasons, State Farm car insurance rates are higher than their competition.

That’s one of the reasons State Farm’s advertising highlights their good service. Some people are willing to pay extra money so that the same Agent will pick up the phone anytime they have an insurance question. To them, it’s worth it.

Is State Farm Worth It To Me?

To me, it’s not worth the extra 38% for my monthly premiums. That’s compared to just one of the quotes I got from another reputable auto insurance company.

I’m not married to State Farm. They’ve been a good company, but I’m shopping around. Until they bring their rates in line with some of the other great car insurance companies out there, I’m bringing my business to somebody else.

State Farm might be great for you, but consider the alternatives. Even as a long-term policyholder, I’m glad I shopped my rates. I’ll be saving 38% every month – at least. I hope you can do the same.

Quote Process: 8
(Scale 1-10: 10=the best)

Price: 3
(Scale 1-10: 10=Cheapest)

Customer Service: 9
(Scale 1-10: 10=the best)

Claims: 9
(Scale 1-10: 10=the best)

Overall Rating: 6
(Scale 1-10: 10=the best)

Do you have something to add? Leave a comment or write your own State Farm review.

How Esurance simplified car insurance with their ‘Quote. Buy. Print.’ and how they’re still turning heads with their spokes-agent, Erin.

Iconic Secret Agent/Insurance Agent - Erin Esurance

I like what Esurance has done in the car insurance industry. With a few other companies like GEICO and Progressive, Esurance has simplified the auto insurance buying process. They’ve made the old-guard like State Farm and Allstate worried. Sure, there are some problems with that (more below), but I love it when companies make things easier.

Esurance advertising is bold. Somewhere around 2003, someone in marketing asked a question like: “GEICO has a lizard. Why don’t we get a young, pink-haired, undercover secret agent/insurance sales-vixen for our commercials? Let’s call her ‘Erin Esurance.’ What d’ya think, Boss?” That poor-CEO must have had a tough sell when he presented their new mascot to the board. But in marketing, different works today. And today, Erin works for Esurance.

About the Company: Esurance

Esurance was a Silicon Valley start-up in 1998. Ten years later, they’ve become one of the fastest growing insurance companies in the United States. They’re currently owned by White Mountain Insurance Group (WTM), a global insurance holding company.

Esurance sells or re-sells insurance for cars, motorcycles, watercraft, home, renters, health, and even life insurance. They primarily focus on auto and home insurance products, or as the industry likes to call it, property and casualty business. At first, I thought they were just a reseller, but Esurance actually markets their own policies direct to consumers.

Esurance is a financially strong company, although not as strong as many of their larger competitors. According to independent rating agency AM Best, Esurance carries an ‘A-‘ or ‘Excellent’ rating.  They are a stable company with the backing of an even stronger holding company.

Getting an Esurance Quote

In the old days, us consumers went from dingy office to dingy office to get a quote for our car insurance. These days, it’s pretty easy to get an online auto quote. Esurance is one of the reasons why. They are pioneers of internet auto insurance.

Knowing their history, I jumped online for a quick quote. It was simple, straightforward, and, so-long as I knew about the coverages, informative. In less than 5 minutes, I had an auto quote on my screen and one in my email inbox. Esurance rates very well for quote accessibility.

After that, I called them up. It was 7 am and I got Kelly in Nebraska. Evidently, Kelly was an Esurance insurance agent who works out of his home to give quotes to would-be customers. I’ve spoken with many insurance agents. From my experience, Kelly was one of the better ones. He was informative, pleasant, and eager to get my business – never mind that he couldn’t find my online quote in his system. Many call center agents could learn a few things from Esurance Agent Kelly.

When he finally gave me a quote, the price was close to what I got online. At least it was less than what I’m paying right now – which is always good.

Esurance Positive: Simple Car Insurance

Like Progressive, Esurance offers a virtually-frictionless car insurance transaction at their website. If you’re comfortable giving your credit card online, then you can have a policy in a few minutes. There’s no need to go through the extra step of calling. However, to get a better feel for the policy, I don’t discourage the phone call – especially if you’re uncomfortable with all the coverages on the policy.

Esurance Negative: Not a “Centralized” Insurance Company

Car insurance isn’t just about getting a quote. It’s a promise. Will Esurance take care of me if something happens to my car? From what I can tell, they stand behind their product. Independent ratings show them to be a strong company, they lived through the dot-com bust, and emerged a very strong competitor in the auto insurance industry.

And still, it has the feel of an internet company. From the online quote, to the Silicon Valley headquarters, to the agent telecommuting in Omaha, Esurance doesn’t feel like your typical car insurance company. In a way, they feel like an internet bank or like, well, this website. Nothing against their business model, it’s just not like the other guys.

Will I Be Hiring Erin Esurance?

I’m still shopping for car insurance after Esurance. Their price wasn’t enough to make me move from my policy – at least not yet. I may yet hire the pink-haired secret agent – prices change with carriers. After all, I’m shopping because my company is high right now. And yet, I’m still calling around.

Quote Process: 9
(Scale 1-10: 10=the best)

Price: 7
(Scale 1-10: 10=Cheapest)

Customer Service: 8
(Scale 1-10: 10=the best)

Claims: *
(Scale 1-10: 10=the best)

Overall Rating: 8
(Scale 1-10: 10=the best)

Anything to add? Leave a comment about your experience with Esurance or write your own review.

Does Allstate have ‘Good Hands’, boxing gloves, or is it just another car insurance company?

Allstate Logo

For Allstate car insurance, it was hard to get a more authoritative spokesperson than a former President. When that President isn’t mired in politics – like a real President – even better.

So when Allstate hired Dennis Haysbert, the actor who played President Palmer in Fox’s television series, 24, they scored big. With a deep, soothing voice, Haysbert plays the part well. But Haysbert isn’t the only person offering advice about Allstate.

If you’re looking for something bad about a company, it doesn’t take long to find it. The bigger the company, the bigger the target. So when the 2^nd largest insurance company in the country has problems, it’s pretty easy to find something bad about it. In fact, one guy has been upset with Allstate since 1999: Allstate Insurance Sucks.

So this begs an important question: Do Allstate’s ‘good hands’ commercials match policyholder experience?

About the Company: Allstate

Allstate Corporation (ALL) is the largest publically traded insurance company in the United States. It is an umbrella company with several insurance and financial services companies. They sell 13 major lines including auto, home, boat, life, and business insurance. In recent years, they branched into investment and banking products – but this is not a major portion of their business.

Allstate sells car insurance through a network of Allstate agents. According to their website, they have approximately 14,900 agents who sell exclusively with Allstate. They also sell other brands (Encompass & Deerbrook) through thousands of independent agents. They employ over 70,000 people – Allstate is a big company.

Allstate is a financially strong company. They have an ‘A+’ or ‘Superior’ rating with AM Best, the 2^nd highest rating they offer. Other rating companies put Allstate in a similar category. To those who look at these things, Allstate will be in business for quite awhile.

Getting an Allstate Quote

As usual, I jumped online to get an Allstate car insurance quote. The graphics were pleasant, but they could have used more user-testing on the site. For one, there were too many screens. At some places, I answered 2-3 questions then clicked next. Maybe it’s a personal problem, but I don’t like having to click more than necessary.

When I finally got to the end, they gave me different packages: Value, Standard, Gold, Platinum. Being a former insurance agent, I’m not impressed with labels. To me, it seems like they’re hiding something when they don’t want to ask me for my exact coverages – on the other hand, they’re trying to make it easier for consumers. I can’t fault them for that.

Allstate Positive: Longevity

Allstate has been selling car insurance since 1931. Any company that has been around that long deserves some admiration. Begun at the height of the Great Depression by an equally-respected company, Sears, Roebuck, and Company, Allstate has stood the test of time. They are here, and will probably be here for many years to come. That’s a great thing for an insurance company.

Allstate Negative: Price & Reputation

After getting a quote online, I usually give the company a phone call. But after looking at their price – which was already higher than my current rates – I decided not to call. My current rates are high as it is. Why should I start another car insurance policy that’s even higher?

In addition, I’m not satisfied with Allstate’s reputation. Various ‘Allsnake’ and boxing gloves experiences have contributed to the reputation. To be fair, Allstate has made strides at improving their complaints. For instance, in Texas, they only had 186 justified auto complaints in 2007. This may seem like a lot, but the ratio of complaints to policies was just above average. We’ll see if they continue to improve.

Will I Switch to Allstate?

This is a personal review and every person’s experience is different. If you get a car insurance quote with Allstate, you may get a better rate than what you’re currently paying. But considering the rate they gave me – which is the major reason for me to switch – I won’t be buying Allstate auto insurance.

Get a better price and work on your public relations and you may get my business, Allstate. Until then, I’ll see you in 12 months.

Quote Process: 4
(Scale 1-10: 10=the best)

Price: 2
(Scale 1-10: 10=Cheapest)

Customer Service: *
(Scale 1-10: 10=the best)

Claims: *
(Scale 1-10: 10=the best)

Overall Rating: 3
(Scale 1-10: 10=the best)

Get an Allstate Car Insurance Quote Here!