Posted On: May 7, 2008, 2:58 pm CDT

Posted By: Safeco Agent

The sad thing is the savings they think they will get from not paying a commission will be lost in the combination of kick back commission to Costco (I am sure they are not letting them market it through them for free), discount giving customers for being Costco members (why buy there if the price is the same as an agent giving advice), increased advertising costs, and adverse selection. People who get turned away from somebody like me asking the right questions will go there and either lie or not disclose some pertinent info which will then cause a higher loss ratio for that business. In the long run they will cost Safeco more and like other people said it will fail. I recall a company that once sold car insurance at Sears and another that sold at Sams. Wonder why they do not sell at Sears or Sams anymore? The only thing that upsets me is turning our product in to a commodity. It is anything but and the consumer should be aware of this. Even in something as simple as personal lines there are big differences in coverage and exclusions.