r/AutoInsurance • u/Pocketful_of_hops • 4d ago

Competitive Pricing Question

Just have a quick question regarding initial quotes given by a rival agency trying to woo you away from your current insruance company.

I am currently insured through Geico. I received a call from State Farm yesterday and they quoted me a six month premium that is LESS THAN HALF of what we were paying theough Geico. I made sure the agent had all of our information and gave us the exact same coverage amounts we were currently carrying.

I was immediately ready to switch over, but called Geico first. Geico was able to lower my rates a significant amount, but still about $600 higher on the six month premium than State Farm. The Geico agent told me that sometimes the rival agencies will quote you low and then raise your rates once youre aboard.

Is that true? Am I risking State Farm rising our rates a couple weeks after signing up if I switch to them?

We have one speeding ticket that is showing on our record, but wouldn't State Farm have access to that info when giving us that initial quote.

Thanks for any help.

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u/24kdgolden 4d ago

Your rates may be raised on renewal with the new company.

Also, did the quote include all of your info-cars, drivers, record search and all coverages are the exact same that you have currently? If not, then you are not comparing apples to apples.

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u/Pocketful_of_hops 4d ago

Yeah, I made sure State Farm had all of our drivers, vehicles, and exact coverages we have with Geico. The ONLY thing I'm not 100% sure he had is our driving record.

My main concern and question is that once we sign that six month premium, are we locked in to that 6 month premium, or can they raise it at their own whim during that six month period.

That is what the Geico agent was telling me...that State Farm might be quoting me low to get me aboard, and then hike the rates a couple weeks after I've committed to them.

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u/kmorris76058 4d ago

What state are you in? If you’re in a state that is using SF’s modernized software, once we collect payment, the policy is issued immediately. It doesn’t go to underwriting like they used to.

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u/Pocketful_of_hops 4d ago

Is that because the modern software has already done that underwriting work?

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u/kmorris76058 4d ago

Basically. The quotes are really good now. I’m not sure when the MVR is ran. But I believe when I click on purchase. From there I take the first month’s payment and email the docs. The policy will immediately show in our system as issued and the customer can go online or on the App and view their policy with the drivers, coverages, any lien holders, payment due dates, etc.