Invite your colleagues and friends interested in investing to enter the gates of Shrewd'm, for they will thank you (and their larger pockets!) later.
- Manlobbi
Outskirts of Shrewd'm / Living Abroad
No. of Recommendations: 0
Still losing to PGR. Headcount down 3K there. Very little commentary other than they're going to raise rates and be profitable in 2023.
No. of Recommendations: 3
Still losing to PGR. Headcount down 3K there. Very little commentary other than they're going to raise rates and be profitable in 2023.
It may be a function of what I watch on television, but I have seen almost no GEICO commercials for the past several months, and I am swamped by a tsunami of 'Flo for Progressive' and especially those idiotic commercials for Liberty, Liberty, Liberty. Liberty.
I have almost wondered if GEICO is in retreat, hunkering down for stabilization after a bad year or two or what. (I don't really follow the ins and outs of the insurance industry, so I really have no idea.) Just an observation.
No. of Recommendations: 5
Yes, GEICO has dramatically cut spending on advertisement. Look at their last three years of expenses and they have been cutting their expenses dramatically while still getting killed on their combined ratio. They are shrinking and customers are leaving for Progressive (and others, but primarily PGR) en masse. But what baffles me is that Progressive is both undercutting GEICO on price (at least for the first year of these new auto policies) and - so far - reporting better underwriting results. Something has to give, and I believe it is about to be PGR's auto underwriting results that show the weakness. I am a longtime Progressive shareholder and it makes me nervous. But they are very well run and auto insurance pricing can be adjusted fairly quickly.
I don't see auto parts inflation, used car values, catastrophe flooding, or the Hyundai/Kia challenge introducing an entire generation of inner-city youth to the ease of auto theft for joyriding reversing meaningfully in the near future.
In my small US city (see if you can guess by my handle), several hundred vehicles are stolen by children each month. It is still primarily Hyundai and Kia from the era without an immobilizer but the kids are quickly realizing that there are many other easy to steal vehicles and branching out. Once you've figured out how to separate an ignition into the two pieces by pushing the little pin in, starting many cars is awfully easy. Unfortunately this is now institutional knowledge in our nation's inner city high schools (and I've seen kids as young as 10 stealing these cars! - they crash quickly of course)
No. of Recommendations: 2
Re progressive insurance. This is purely anecdotal, but progressive cam in at less than half of my then current State Farm insurance for two vehicles. I have shopped State Farm every two or three years, and other companies were in line, so it was not State Farm gouging, progressive is crazy aggressive in their pricing. The first six month renewal was a 10% bump, but I expected that. It will take a few years to get back to what I was paying. Dropped from $744 per six months to $336 for exact same coverage. Liability comp with $100 deductible collision with $1000 deductible, uninsured and medical.
Jk
No. of Recommendations: 5
More anecdotal:
Former recent Geico customer. Recently purchased a Tesla Y and also added my daughter 17, to policy. Daughter added $1 K and Tesla added $2K. Umbrella tripled as well from $1K to $3K. Glad to see Geico pushing through rate increases, but. Got bids from 5+ companies. Lowest to highest price AAA, Safeco, USAA, Geico, Progressive. Chose Safeco, AAA would not offer Umbrella commitment until after you signed up. Travelers was best bid prior to adding Tesla, then jumped to higher side.
No. of Recommendations: 0
Even more anecdotal:
Neighbor was with GEICO. Switched to Hanover for savings. His teen daughter had two wrecks and Hanover gave him the boot. Progressive was his best option (lowest premium) after this so it would seem Progressive may be taking on more risk for signups. Maybe they hope to make it up on future rate increases?
No. of Recommendations: 0
Auto insurance rates have jumped in Texas lately.
I've been with Amica after years of being with AAA. Amica pricing is good, customer service is great, plus they - until this year - pay out a dividend check. Apparently Texas market is too tough for them to continue this practice.
Recently got my renewal info for home and auto, and they jumped up roughly 10%. I immediately went to Geico.com and did an entire quote, apples to apples, with my soc sec # and everything to get a true picture.
Geico was 60% higher than Amica. I was shocked that the diff was that large; I thought insurers always gave their absolute best pricing to new customers.
I suppose I could get a bid from Progressive as well, but I don't want to encourage more Flo commercials. I do like the "new homeowners turn into their parents" ads though.
No. of Recommendations: 8
Over the years Buffett has frequently said he is ok with Berkshire's insurance staff sitting on their hands and letting business go to other competitors during times when competitive pricing points to a poor combined ratio.
https://www.wallstreetmojo.com/combined-ratio/#:~:....
Methinks this is what has been allowed to happen with Geico during the past two years. As I recall, Buffett made mention in the 2020 or 2021 annual meeting about how auto insurance claims were adversely accelerating. No need to write insurance if it is going to result in a later profit loss to Berkshire.
Uwharrie
