by Lauri » Sun Aug 29, 2010 08:50 pm
My husband and I have The Hartford auto/home insurance through AARP and he noticed that the fine print says that it is actually through Southern County Mutual. He wants us to switch to another company because county mutuals are more expensive and are for people with bad records. Neither of us have any accidents or tickets and, having been the one who shopped for the insurance, I think we pay a great rate.
Are county mutuals expensive? And only for bad drivers?
Are county mutuals expensive? And only for bad drivers?
Posted: Mon Aug 30, 2010 01:54 pm Post Subject:
Understand, first, that AARP does not sell insurance of any kind (they advertise Medicare Supplement, Life, and Home and Auto) or own any insurance companies. They sell their membership list to insurance companies, and you have to be a member of AARP to obtain any of the products they advertise.
As for "county mutuals" being more expensive, I think you'll find their rates are probably competitive. But nothing prevents you from obtaining quotes for coverage from any company of your choosing and changing your coverage to another company. Just be aware that cancelling in mid-term may cause you to lose money by having to pay a cancellation fee (deducted from your premium refund, if any).
No insurance company is "for bad drivers" only. In fact, most companies are required to accept a certain number of "high risk" insureds according to their overall market share in each state.
If you have already done the comparisons and believe you have a great rate, you probably do.
However, the only "Southern County Mutual" insurance company I can find is headquartered in Dallas, Texas, and is not affiliated with The Hartford. Southern County Mutual is the 20th largest auto insurer in Texas, by premiums, with about 1.26% of the market share. The company is rated A- ("good") and stable by AM Best, as an indication of its ability to pay claims, so I don't think there's any cause for alarm -- tell your husband to go fishing and forget about the insurance.
Perhaps it's just your homeowner's that with The Hartford through AARP.
Posted: Tue Aug 31, 2010 10:35 am Post Subject:
Max, it's pretty much interesting when it comes to information from you. Now, I'd just like to know on what basis these carriers would actually accommodate high-risk drivers!
Posted: Thu Sep 09, 2010 08:53 am Post Subject:
Thank you for the lecture on what AARP is. I'm not an idiot, but was simply noting that our policy is with The Hartford, who recently notified us that we could save money if we were members of AARP since my DH now qualifies. We're members, not stupid. We know they don't sell the insurance.
As for the county mutual, my DH works with our state legislature and insurance issues is one of his committee's topics and, yes, county mutuals are the part of the company where people with bad driving records get their insurance coverage. People with clean records, like us, are insured through standard companies and NOT lumped together into county mutuals. Since we both have clean records, he was surprised to see, on our renewal, the words "county mutual". We know insurance companies can't discriminate; he's wondering why we are in the company of people with bad driving records when we have clean records and not simply insured through 'The Hartford', why 'The Hartford and Southern County Mutual'.
As for "Southern County Mutual", in my initial post and previous paragraph, I typed exactly what was across the top of the form which states both The Hartford and Southern County Mutual, on the same line and in that order. Perhaps YOUR research was insuffcient.
My DH doesn't go fishing, he's employed. And the auto renewal and the homeowners are both through The Hartford, both renewals arrived at the same time and in the same envelopes from The Hartford, albeit separate ones.
Please do better research and drop the snarky attitude...someday you'll be 50, too.
Posted: Thu Sep 09, 2010 03:47 pm Post Subject:
on what basis these carriers would actually accommodate high-risk drivers!
When it comes to "assigned risk", each insurance company is "assigned" a number of high-risk drivers who have been turned down for coverage by one or more companies on the basis of their driving record. The assignment is based on market share -- if the company has 1% of the market share in the state, they will be assigned approximately 1% of the drivers in the high-risk pool. They must accept the risk, and there may be limitations on the coverage provided and premium charged imposed under state law.
Posted: Thu Sep 09, 2010 04:05 pm Post Subject:
Thank you for the lecture on what AARP is. I'm not an idiot,
Well, EXCUUUUUUUUUUUUUUUSE me! I never said or implied anything of the sort. Just didn't know if you were aware of the fact or not. Plenty of people think AARP is their insurance company. (And many people do not know that AARP supports abortions, too.)
I did not intend to "lecture" you, just presented the fact as I could uncover them. You still have not identified your state of residency.
As for "County Mutual Insurers" only insuring poor risks, that's just not true. No insurance company is in business to provide insurance only to poor risks. In all states with "assigned risk" pools for auto, homeowner's, and health insurance, the companies must accept risks they might otherwise choose to decline, but only in relation to the percentage of market share for the type of insurance they sell in the state.
he's wondering why we are in the company of people with bad driving records when we have clean records
This would be true even if you were insured with State Farm, Farmers, Allstate, 21st Century, GEICO, Progressive, Infinity, Mercury, or any other insurance company whose name you recognize or not. All companies doing business in a state with "assigned risk" pools (and that's all 50 as far as I know) have their fair share of poor risks. Right along side all of us with "clean records". It does not make any of the rest of us "dirty", and it does not affect our rates.
and not simply insured through 'The Hartford', why 'The Hartford and Southern County Mutual'
Well, apparently "The Hartford" must own a company called "Southern County Mutual" in your state. If you are not in Texas, let me know, and I'll see what else I can find.
As I stated, the only company named "Southern County Mutual" I could find was in Texas. And according to AM Best, whose published information might not be entirely up to date, but usually is, it is not owned by The Hartford.
So again, I'm not lecturing, just stating facts as I can find them. You asked a question and I gave you an answer. Notice that no one else did?
Sorry your husband doesn't fish. It's a great way to relieve tension. He might actually enjoy it.
And I am over 50, and want nothing to do with AARP. They and their members are largely responsible for my inability to sequester Social Security money in my own name.
Posted: Tue Sep 28, 2010 10:34 pm Post Subject:
County Mutuals are used in Texas by insurers to avoid certain stringent rate regulations, such as Texas insurers are not allowed to charge for speeding tickets. In many cases, avoiding these regulations allow the insurance companies to offer LOWER rates to customers. People that are safe drivers and don’t get speeding tickets aren’t being forced to pay higher premiums because they are statistically lumped in with those that speed.
Posted: Tue Sep 28, 2010 10:36 pm Post Subject:
Your policy is still backed by Hartford Insurance, which is an A rated company.
Posted: Tue Sep 28, 2010 10:37 pm Post Subject:
Texas is known to do things a little differently than the rest of the nation.
Posted: Tue Sep 28, 2010 10:38 pm Post Subject:
Allstate, State Farm, Progressive, USAA each own a County Mutual in Texas.
Posted: Tue Sep 28, 2010 10:39 pm Post Subject:
For years, companies wrote through County Mutuals so they could avoid having to take risks assigned to them from the pool. However, in 2003, Senate Bill 14 was passed which lifted a County Mutual’s exemption from participating in TAIPA.
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