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American Modern Insurance - Warning

mikeseven

New member
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.
 
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!
 
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.
 
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.
 
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.
 
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.
 
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!!!
 
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 :dance
sorry to see you go....... can we get the door for you? :deal
OM
 
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...
 
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 :dance
sorry to see you go....... can we get the door for you? :deal
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.
 
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.

I did the same thing with exception of going to Gieco. When changing from a 15 Tenere to a 18 R9T,everytime I tried to get a new quote from Progressive the quote went up. Gave up when they topped 900 bucks, up from 478. Gieco came in a little under 400 and has now remained the same on my first renewal. Progressive was good insurance aND I did have one weather related non-chargable claim three years before, with another bike, but over a 97 percent increase two bikes later was unacceptable. I don't care how many free coffees they give out at the progressive motorcycle show.🤨
 
I did the same thing with exception of going to Gieco. When changing from a 15 Tenere to a 18 R9T,everytime I tried to get a new quote from Progressive the quote went up. Gave up when they topped 900 bucks, up from 478. Gieco came in a little under 400 and has now remained the same on my first renewal. Progressive was good insurance aND I did have one weather related non-chargable claim three years before, with another bike, but over a 97 percent increase two bikes later was unacceptable. I don't care how many free coffees they give out at the progressive motorcycle show.🤨

Geico was bait and switch. I tried them and canceled right away. Gave me a great rate, but dinged me on a car accident unless I put the car policies with them. I said no. Dairyland didn't care.
 
I did an automatic thumbs down on Geico many years ago when it was discovered that they were giving free speed-radar units to every police department that would take them. The scam being that if you got a speeding ticket they could raise your rates. They may not be doing this anymore, I don't know. But the corporate ethics the radar stunt disclosed made them a company that will never get a dime from me. YMMV
 
I’m with Paul on this one, and I have a family member who is a claims adjuster for Geico and could probably get me a reduced rate. I just choose not to deal with the company for the same reason as Paul.

Just got my Progressive renewal and will be shopping for a new carrier tho, as the rates have jumped a lot over the last couple years-even with no claims. When it comes to liability and collision the carriers don’t give enough consideration to the fact that I can only ride ONE of those bikes at a time. IMHO, of course.

Best,
DeVern
 
I’ll defend Progressive insurance. I’ve had three bikes insured with them for over 14 years and my rates have gone down slightly. That includes a non-chargeable claim for a total loss due to a deer collision. They handled that claim very fairly, including my damaged gear. There may be national and regional insurance companies, but each state has some kind of insurance regulator that determine what rates are permitted. So, aside from your own personal items that affect rates, the state and your own location have a big impact.
 
Hagerty-you may want to check them out.

Hagerty does collector insurance and are located in Traverse City (pronounced Traffic City), MI. I don't have anything insured with them but attended a pit stop for a group of pre-70? motorcycles that were riding from Sault St Marie to Key West that they hosted. They look to be a top shelf organization. We see rolling stock like Mclaren cars and such sneaking thru our area at times. They also have a Drivers Club with a quarterly magazine that is simply great. As good as anything in Car and Driver. A guy in town shares them with me to read.

Wayne Koppa
Grayling, MI
#71,449
 
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).

We have had a claim or two with State Farm in the last few years. The last one an adjuster never came out, but we were told to take the car to our choice of bodyshops, get it fixed and they would cover it, and they did. Simple and easy. I don't know how anyone could make it go smoother, unless they picked up and dropped of the car for us!
 
Conclusions?

It would appear from all these varied comments that the insurance industry is completely variable, with little rhyme or reason with their pricing. Buyer beware and some adjustment required periodically to obtain justifiable premiums. I'm a consumer that likes to stay loyal to a particular brand (hence my travels back over and over again to beemer when there are quite possibly superior products available) if I feel the product I pick has value for me. My car and home owners insurance has been with Farmers for over 20 years now, because my agent continually contacts me every once in a while to suggest changes that keeps my costs reasonable. Unfortunately Farmers has never been interested in providing motorcycle insurance so I've gone to the typical vendors like Progressive or Gieco who seem to specialize in MC insurance, however, despite their advertising to the contrary, their customer loyalty definition is out of a different play book than mine. So, at least for motorcycle insurance, I'll play the game each year and review my options and switch on a dime if costs get out of line with value.
 
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