A new customer from Beaverton, Oregon came in to buy insurance today that I quoted about three days ago. He told me about how he'd been shopping around since he got my quote from companies he found through searches and banners he clicked on while surfing online. His best quote was initially from one of the big television, radio, billboard and online companies. He gave the agent on the phone his entire information, included drivers license and social security number. The quote he got was amazingly inexpensive. He then authorized that agent to proceed with the policy. At the moment he gave the agent his credit card information, he told him that the price had tripled. My customer then questioned how that was possible. The agent told him it was because he hadn't checked the customer's credit and driving record until that moment.
I've heard this and many other stories like it. What is worse is the company sells you the policy at the 'unscored' rate (meaning they haven't checked your insurance credit score or driving record) and then the policy gets issued at the 'scored' rate which can be hundreds of dollars higher.
Moral of the Story
Before you approve the direct writing insurance company from taking your hard earn money, be sure and ask if he or she has run your:
- CLUE report and
- DMV motor vehicle report.
If the agent cannot guarantee that those reports have been received and used in the calculation of the premium, you cannot be guaranteed that the quote he gave you is the actual price you will be paying. Accuracy in quoting is extremely important when shopping for insurance. There is no excuse now, with the technology we have, for getting an inaccurate quote.