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Thread: American Modern Insurance - Warning

  1. #1
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    American Modern Insurance - Warning

    Just got my renewal invoice for a collector car that I insure with American modern. The first year's premium was cheap compared to my regular insurer State Farm. With the first renewal the premium has increased 53% despite no claims, minimum mileage, nothing has changed. Had to smile when the latest marketing from BMW MOA promoting this insurer popped into my email, just as I was reviewing the policy premium. Talk about good timing. Don't be fooled by teaser rates.

  2. #2
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    This is typical P&C marketing ploy. First year premium is artificially low. They play this game because it pays off for them. Surprising how many people will not move with the second year increase. They are constantly churning business, but it pays for itself. Progressive, Liberty Mutual...well, you name the company and they do it. I've been with State Farm for 50+ years and occasionally check market price through other carriers, but I do it knowing, as you indicated, that initial quote is a teaser. As always....BUYER BEWARE!
    MOA #46783

  3. #3
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    Spot on. I use State Farm for all other vehicles and home coverage. I have a local agent who looks after us and chases things down, first class service. I'm going back to them, trying to hide my naughty-puppy look.

  4. #4
    Frump
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    American Modern

    I've been a customer of American Modern for many, many years. I haven't had any issues with the company until recently.

    They changed my policy number in May and I couldn't figure out how to pay my bill online (the new policy number was not added to my online account). They actually lowered my annual premium $50. Finally, in frustration over trying to pay or contact them (very short support hours, no email addy, and can't find contact form on their website), I called the agent listed on my policy, they took my credit card info and then took care of me.

    Two months later, I get a notice that American Modern is raising my premium for $475 to $1375. Unless I agree to pay more or waive my uninsured/under-insured coverage, they are going to cancel my policy in a few days. Fiddling on the website, I figure out I have to add the reissued policy number to my account. I still can't figure out why so much, neither can the agent listed on my policy. My old bikes aren't worth much. Really poor business practice at best. I've only had one tiny claim about ten or 15 years ago with them, and no moving violations in several years (now overdue and jinxed). I just switched to Progressive today for about $20 more per year, a little better coverage and $1,000 deductible. I'm a platinum auto member there.
    http://bigsiouxriders.org

  5. #5
    Ponch ponch1's Avatar
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    Quote Originally Posted by Frump View Post
    I've been a customer of American Modern for many, many years. I haven't had any issues with the company until recently.

    They changed my policy number in May and I couldn't figure out how to pay my bill online (the new policy number was not added to my online account). They actually lowered my annual premium $50. Finally, in frustration over trying to pay or contact them (very short support hours, no email addy, and can't find contact form on their website), I called the agent listed on my policy, they took my credit card info and then took care of me.

    Two months later, I get a notice that American Modern is raising my premium for $475 to $1375. Unless I agree to pay more or waive my uninsured/under-insured coverage, they are going to cancel my policy in a few days. Fiddling on the website, I figure out I have to add the reissued policy number to my account. I still can't figure out why so much, neither can the agent listed on my policy. My old bikes aren't worth much. Really poor business practice at best. I've only had one tiny claim about ten or 15 years ago with them, and no moving violations in several years (now overdue and jinxed). I just switched to Progressive today for about $20 more per year, a little better coverage and $1,000 deductible. I'm a platinum auto member there.
    I ditched Progressive a couple years back. They kept raising my rates even though I had no claims and I have my cars with them too. Went to dairyland and saved 200 a year.
    My Motorrad
    BMWMOA 162849 | BMWRA 41335 | VROC 8109-R | VBA 19

  6. #6
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    I am another one with State Farm. I have been a customer for 45 years. When we bought our first home it was not even discussed, just called State Farm and them write a policy. I shop around once in a while, but the competitors are within a few dollars less, but not enough to take a chance. I had claims over the years and had one claim they gave me just a hint of hassle. Our married daughter flew home for as few days and borrowed our car, and of course got in a minor fender bender. State Farm called about it and mentioned she was not down as an authorized driver. I told the clerk that she is our 25 year old, married daughter. The gall on the phone hesitated and i told her, "Look, I have been paying premiums to State Farm for 40 years, I don't think this should be an issue." She said they would take care of it. I told her I thought so!

    We had a minor kitchen fire and they paid my claim without even sending an adjuster. My agent stopped by, poked his head in the kitchen for 2 seconds, asked if everyone one was alright. Other than that, they didn't even ask for a picture. Paid us for painting, a new range and range hood, flooring, and some extra for cleaning fire extinguisher dust throughout the house. I took pics, but they never asked for them. We have had a few auto claims, and one claim for a broken water pipe the flooded my home office, luckily we were home, no hassles.

    It would take more than a better price to get me to change insurance companies. Most companies will write a lower price the first year, then start bumping it up over the next few years.
    From the only real Fargo, ND!

  7. #7
    Registered User mlytle's Avatar
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    For collector cars... Use Grundy insurance.
    Marshall
    92 K75s, 94 K75s, 09 K1300s

  8. #8
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    Quote Originally Posted by mikeseven View Post
    Spot on. I use State Farm for all other vehicles and home coverage. I have a local agent who looks after us and chases things down, first class service. I'm going back to them, trying to hide my naughty-puppy look.
    "Naughty puppy look" LOL
    BAD PUPPY- GET BACK HERE!!!

  9. #9
    Fortis Fortuna Adiuvat Omega Man's Avatar
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    For your consideration-

    When a policyholder, after 20 years of no claims, gets mad and changes companies- the old companies win.
    All those years with no payouts
    sorry to see you go....... can we get the door for you?
    OM
    "You can do good or you can do well. Sooner or later they make you choose." MI5
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  10. #10
    Registered User mlytle's Avatar
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    For clarity, op was referring to collector car insurance. This is a specialized type that most mainstream companies like state farm, progressive, usaa, etc do not offer. experiences with those big companies do not apply in this question.

    Agreed value collector car insurance is for a set payout on total loss, car must be garaged, very limited on how far and where it can be driven, and who can drive it. It is cheaper than regular insurance due to the much reduced risk.

    All my collector cars are with Grundy. I have tried others, but...
    Marshall
    92 K75s, 94 K75s, 09 K1300s

  11. #11
    Frump
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    Quote Originally Posted by Omega Man View Post
    For your consideration-

    When a policyholder, after 20 years of no claims, gets mad and changes companies- the old companies win.
    All those years with no payouts
    sorry to see you go....... can we get the door for you?
    OM
    I wouldn't think so. I worked for a medium sized insurance company (500 employees at that time, now nearly 2,000) at one point in my career and my current employer runs insurance funds as a third party (policies, claims and underwriting). I also hold a few securities in a few insurance companies, so I know at least a bit about how they operate. I would want to keep the good customers, that is those with a history of paying their premiums, low expense overhead, good driving records, and a history of not making claims. I wouldn't consider driving those customers away a win.

    My confusion is why would my rates go down $50, only to go up 300% three months later on an existing policy with American Modern (similar to the original OP)? Also, why the lack of appropriate communication with me? I haven't had any tickets, claims, financial issues, or anything else which would indicate change in cost for them. Shouldn't their independent agents be able to explain it in some way?

    Regarding State Farm. The company had a reputation for providing excellent service at a little higher, but reasonable rate. They provided better and more service, that was their business model. In the last few years I'm told they have gone through a transformation to become more like Progressive, Liberty and other discount insurers, laying off or driving off claims managers and some of the settlement/litigations folks (particularly those with higher salaries over 50). If I'm going to go with a discount/low overhead insurer, I'm going with one who knows and understands that business model with better pricing. I also like the Progressive website and I rarely have to talk to my agent. When I do, the agent is helpful because he/she is an independent agent.
    http://bigsiouxriders.org

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