akbeemer
SURVIVOR
I am starting my third year with Markel Insurance. Although I’ve not had occasion to file a claim, I have been pleased with their service and rates. Last year I insured four bikes, with full coverage for under $800. Imagine my displeasure when I got my renewal and the charge for the next year was $1200. The new rate does include a fifth bike, but all the bikes went up in cost and the new bike accounted for only about 50% of the hike. I noticed a letter at the bottom of the electronic copy of my new policy. It essentially said I was now considered a high-risk client and that this decision was made based on a report they got from a company called Lexus-Nexus. Specifically the element of the report that primarily influenced my rating was,” % OF ACCOUNTS REPORTED IN LAST 24 MONTHS TO TOTAL ACCOUNTS ON FILE.” I’m not really sure I know what that means, but they say they got it from a credit report.
Now to fully understand why I’m feeling ill-treated in this situation, one needs to know some facts about me. No moving violations in the last 25 years, no claims… ever, credit scores on all three agencies above 800 and an auto insurance rating over 900 on a scale that tops at 950. One would think I would get the rates assigned to low risk, preferred people, and in fact I do for the insurance on our other vehicles (that company, USAA, does not insure motorcycles directly).
So what to do? Only choice is to enter into the bureaucratic abyss of two large companies and, as it turns out, the Great State of Montana.
The simplified version after many phone calls:
Lexus-Nexus: They base their rating on a report provided by one of the rating agencies and if I want to see it I must send a letter. They go on to say that Markel chose what factors from the report Lexus-Nexus should weight. Nothing they can do for me… talk to Markel.
Markel: They must accept what Lexus-Nexus gives them and that that Lexus-Nexus uses a proprietary formula to establish a rating. Yes, Markel does tell Lexus-Nexus what elements of the report to weight. The State of Montana requires insurance companies to check the rating of their customers every third renewal and the insurance company must use the results of that check to assign rates based upon a state approved table. Markel cannot change the rating or rates without breaking the law. Nothing they can do for me… talk to Lexus-Nexus.
I spoke to a very polite guy at Markel who had an immensely long title. He lamented with me about the unfairness of my situation, assured me that I’m not the first with this sort of complaint, informed me that my complaint would be considered the next time their contract with Lexus-Nexus comes up for renewal, and advised me to talk to Lexus-Nexus.
My final comment to the Markel rep was that I was not going to continue to be bounced back and forth between the two companies and that if he valued me (and the others with similar complaints) as customers he would work with Lexus-Nexus to ensure well qualified customers are not being ill treated. I got the distinct impression that my value to Markel has its limits.
So what’s next? I will be looking for a local agent that can provide me insurance at a reasonable rate and most importantly, face-to-face customer service. When we lived in AK I used Allstate. Their rates were higher, but I had an agent that would let me change the status of bikes to storage or full coverage by making a simple phone call. When all was said and done with the savings of paying just storage rates much of the time, Allstate was very competitive. In the meantime I’m stuck with Markel, but in fact even though I’m classified right alongside a three-time loser on grand theft auto charges, $100 per month for full coverage ($1000 deductible) on five bikes is not horrible. But it’s the damn principle of the thing. I worked hard to establish a good reputation and now I feel as if I'm being treated like a drunken test pilot.
Now to fully understand why I’m feeling ill-treated in this situation, one needs to know some facts about me. No moving violations in the last 25 years, no claims… ever, credit scores on all three agencies above 800 and an auto insurance rating over 900 on a scale that tops at 950. One would think I would get the rates assigned to low risk, preferred people, and in fact I do for the insurance on our other vehicles (that company, USAA, does not insure motorcycles directly).
So what to do? Only choice is to enter into the bureaucratic abyss of two large companies and, as it turns out, the Great State of Montana.
The simplified version after many phone calls:
Lexus-Nexus: They base their rating on a report provided by one of the rating agencies and if I want to see it I must send a letter. They go on to say that Markel chose what factors from the report Lexus-Nexus should weight. Nothing they can do for me… talk to Markel.
Markel: They must accept what Lexus-Nexus gives them and that that Lexus-Nexus uses a proprietary formula to establish a rating. Yes, Markel does tell Lexus-Nexus what elements of the report to weight. The State of Montana requires insurance companies to check the rating of their customers every third renewal and the insurance company must use the results of that check to assign rates based upon a state approved table. Markel cannot change the rating or rates without breaking the law. Nothing they can do for me… talk to Lexus-Nexus.
I spoke to a very polite guy at Markel who had an immensely long title. He lamented with me about the unfairness of my situation, assured me that I’m not the first with this sort of complaint, informed me that my complaint would be considered the next time their contract with Lexus-Nexus comes up for renewal, and advised me to talk to Lexus-Nexus.
My final comment to the Markel rep was that I was not going to continue to be bounced back and forth between the two companies and that if he valued me (and the others with similar complaints) as customers he would work with Lexus-Nexus to ensure well qualified customers are not being ill treated. I got the distinct impression that my value to Markel has its limits.
So what’s next? I will be looking for a local agent that can provide me insurance at a reasonable rate and most importantly, face-to-face customer service. When we lived in AK I used Allstate. Their rates were higher, but I had an agent that would let me change the status of bikes to storage or full coverage by making a simple phone call. When all was said and done with the savings of paying just storage rates much of the time, Allstate was very competitive. In the meantime I’m stuck with Markel, but in fact even though I’m classified right alongside a three-time loser on grand theft auto charges, $100 per month for full coverage ($1000 deductible) on five bikes is not horrible. But it’s the damn principle of the thing. I worked hard to establish a good reputation and now I feel as if I'm being treated like a drunken test pilot.
