New Insurance Idiocracy

2,649 Views | 18 Replies | Last: 1 mo ago by robertcope
Absolute
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AG
Was visiting with our adult son this weekend. He related this experience. Thought I would share since it is pretty crazy and new to me.

Last week he received an email from Progressive, his auto insurance carrier, that payment changes were being processed for his next payment. He found that strange since his policy renews in June and December. So he checked the app for his policy.

Sure enough there were changes!!! Four, yes 4!!, individuals (with really bad driving records) that he did not know, had been added to his policy and his new premium had increased to $2900 per month!

Of course he called. They informed him that the people had been able to give Progressive his name and address (an old address) and therefore had been allowed to be added to the policy.

He explained that while that was an old address of his, if was not his current one listed on the policy and that that seem absolutely absurd. Particularly when he had been required to do two factor authentication and provide the last 4 of his SSN to get to the point he was on the current phone call to discuss the problem.

They did not really even apologize, just agreed to remove the 4 from his policy.

I recommended that he call back and insist that his policy be changed to a new number and all connections to the old one be removed. Also recommended that he file a fraud report and freeze his credit.

Really wild to me!!
Ag for Life
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AG
I would cancel immediately and find different insurance, that's ridiculous
TecRecAg
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AG
Yep. New insurance carrier by EOD if that's me
Absolute
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AG
Suggested that as well. Doubt he will do it. He is an adult, but somewhat lazy on that kind of thing. Least it isn't my problem.
htxag09
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As someone w/ Progressive.....

I'd probably change carriers, but isn't a sure thing. I just shopped and Progressive was my cheapest option by far....

I also use a broker, so would have had them handle the snafu with Progressive....
sts7049
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AG
that's a new kind of fraud i didn't even know was possible
Martin Q. Blank
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What's the scam here? They now have proof of insurance if pulled over?
Guitarsoup
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AG
Probably had to prove they had insurance after a DWI or for a job.
a07nathanb
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AG
I'm thinking your son may not have updated his address or if he did update the mailing address he may not have updated the "garaging" address with the carrier. Carriers regularly pull Lexis Nexis reports to find drivers you may have intentionally or unintentionally not told them about.

For instance Jack gets out of jail after his 3rd DWI and moves in with Jill. Jill can't afford the increase in premium so she doesn't add him to her policy. Jack registers his parole address as Jill's address. This shows up on Lexis Nexis and the carrier lets the insured know they can pay the additional premium or pound sand.

I could be wrong but I don't think this was something nefarious probably just an address matching issue
JamesPShelley
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htxag09 said:

As someone w/ Progressive.....

I'd probably change carriers, but isn't a sure thing. I just shopped and Progressive was my cheapest option by far....

I also use a broker, so would have had them handle the snafu with Progressive....
Did you try Mercury insurance? I found my Progressive quote to almost be a "**** you, we don't want your business".

I've found Merccury to be the lowest cost... for more than 25 years. I'll shop around once in a while (I, too, use a broker) and find rates are in the"**** me" category.

Couple of years ago went to a broker in my town (not the broker I've been using for 25+ years). She was on the phone... I sat across the desk from her. She knew why I was there (I put my folded existing policy on her desk... with the Mercury name facing me) and as soon as she got off the phone simply said, "I can't help you. Mercury is the lowest". We chatted for a moment... she opined... and I left. This year saw my rate jump from $167 a month to $240. I remain with Mercury.

You tried Mercury???
Absolute
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AG
That is certainly possible. I only have the details he provided. Seems insane that it could have happened the way he said they described.
Martin Q. Blank
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Guitarsoup said:

Probably had to prove they had insurance after a DWI or for a job.
So you go through the trouble and risk of identity theft? Why not just get a cheap policy, show your proof, and then cancel it?
Guitarsoup
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AG
Martin Q. Blank said:

Guitarsoup said:

Probably had to prove they had insurance after a DWI or for a job.
So you go through the trouble and risk of identity theft? Why not just get a cheap policy, show your proof, and then cancel it?
Do you think the people that would add themselves to a complete stranger's insurance policy think the way that you do?
tamuags08
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AG
This is relevant to my interests....just shopped a broker and was presented with two options: Progressive and Mercury. Mercury was slightly more and would not include an umbrella policy unless we bundle all the home with it.
Absolute
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AG
Although, the old address was a one bedroom apartment. Not sure that would reside 4 drivers.
Bird Poo
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AG
JamesPShelley said:

htxag09 said:

As someone w/ Progressive.....

I'd probably change carriers, but isn't a sure thing. I just shopped and Progressive was my cheapest option by far....

I also use a broker, so would have had them handle the snafu with Progressive....
Did you try Mercury insurance? I found my Progressive quote to almost be a "**** you, we don't want your business".

I've found Merccury to be the lowest cost... for more than 25 years. I'll shop around once in a while (I, too, use a broker) and find rates are in the"**** me" category.

Couple of years ago went to a broker in my town (not the broker I've been using for 25+ years). She was on the phone... I sat across the desk from her. She knew why I was there (I put my folded existing policy on her desk... with the Mercury name facing me) and as soon as she got off the phone simply said, "I can't help you. Mercury is the lowest". We chatted for a moment... she opined... and I left. This year saw my rate jump from $167 a month to $240. I remain with Mercury.

You tried Mercury???


I have Mercury. After the big storm that came through Dallas in late May, I needed a new roof. Their adjuster came out, approved some things, but didn't take pictures of everything. Had to file a supplemental claim, and Mercury ghosted me for 3 months straight. Finally had to get Liere involved since they are my broker. It was taken care of the next day.

I'm a big fan of Liere, but if they recommend Mercury again, I'll ask for a different provider.
SteveA
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AG
Quote:

Progressive was my cheapest option by far....
Yeah, because they suck.
tamuags08
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AG
SteveA said:

Quote:

Progressive was my cheapest option by far....
Yeah, because they suck.


They all suck, to be fair.
robertcope
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I've had great experiences with Progressive. They're also the cheapest for me by a ton. I think with any huge organization, an individuals experiences will vary.
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