Farmers Commercial Auto

[Rob]

I have a customer who has his Garage liability and workers comp with me. His commercial auto was elsewhere and he wanted that to stay put. He called and said Farmers wants to write his work comp because they will give a really deep discount on the "package deal". I said, "Really, how much is the discount?" and he admitted he didn't know and that he thought that was a good question to find out.

My question: Any disadvantages to the Farmers Commercial auto policy, i.e. drop down limits or anything like that? Any disadvantages to their work comp (I can't imagine there would be). Thanks for any insight.

[steve32]

Where is his commercial auto now?

[Rob]

Where is his commercial auto now?

It is with Progressive.

[d's insurance store]

I tend to think that even if your coverage on the GK is better, if this so called client is inclined to make a decision at this point in time to safe premium for a 'good enough' policy, then you'll soon be calling this person an ex-client.

And if you've only got the GK and work comp with this person, and they've never been receptive to even checking your rates for commercial auto, then I would call you an accommodation agent...right fit for the one or two products at the right time...no more, no less. Apparently this policy holder has no inclination to consider bundling up everything with you for continuity sake.

I would respectfully suggest that you let him obtain a written quote from the Farmer's agent, and then do you best to pick it apart in coverage or rate. I'm suspecting that like many small business owners caught in a financial squeeze now, he is looking at the bottom line and not paying much attention to coverage...and truely, work comp isn't a product that can easily be differentiated one carrier to the next.

[Rob]

I tend to think that even if your coverage on the GK is better, if this so called client is inclined to make a decision at this point in time to safe premium for a 'good enough' policy, then you'll soon be calling this person an ex-client.

And if you've only got the GK and work comp with this person, and they've never been receptive to even checking your rates for commercial auto, then I would call you an accommodation agent...right fit for the one or two products at the right time...no more, no less. Apparently this policy holder has no inclination to consider bundling up everything with you for continuity sake.

I would respectfully suggest that you let him obtain a written quote from the Farmer's agent, and then do you best to pick it apart in coverage or rate. I'm suspecting that like many small business owners caught in a financial squeeze now, he is looking at the bottom line and not paying much attention to coverage...and truely, work comp isn't a product that can easily be differentiated one carrier to the next.

Well for commercial auto, I pretty much stick with Progressive and I offered a BOR when I discovered that but it never got returned.

He called me personally to express his gratitude and that he appreciates my advice and the time I take with him but that Farmers was only offering that rate if he got both policies. After I made the point "How do you know that" and that what if my workers comp renewal quote along with Farmers stand alone auto is less than the Farmers package? He said that was a good point and that he would ask them what the auto price is without comp.

The funniest thing is the Farmers agent said "You don't even have General Liability!". This is a mobile mechanic that drives customer's vehicles. HE had to explain to the Farmer's agent what Garage Liability and GKLL was and the Farmer's agent said "well I don't know about that, I'll have to look into it".

So I persuaded the insured to let us continue with the work comp renewal quote and then he'll get the stand alone Farmers auto (which admittedly does sound pretty cheap and broader with more coverage than Progressive). Then I'll send him one of my little write ups on Garage Liability and tell him any agent handling his type of business should know this stuff (which the Farmer's agent doesn't). Maybe that will open up his eyes a little. But you are right, it is the financial crunch and he is trying to do whatever he can for the bottom line.

[pita3333]

I would ask your client if he is the cheapest mechanic out there. When he says no...ask him why not? He will likely say that he knows more than other mechanics and offers mobile sevices which most other mechanics do not.

Then I would turn it around and ask...well if you are not the cheapest, why do you want to have the cheapest coverage? be sure to have used the work "cheapest" up to this point...then switch to the best "value" and point out why you may not be the lowest, but are the best value.

Personally...I do not like Progressive and think you can do better with other carriers. Might change my thoughts based on the local on the ground issues in your area.

[Porter]

Chances are that the Farmers agent quoted the commercial auto wrong. When the policy issues it will come back with an up rated premium. I would ask the client if you can take a look at the Farmers quote to make sure it is rated correctly. This agent is probably a newbie.

[Rob]

Chances are that the Farmers agent quoted the commercial auto wrong. When the policy issues it will come back with an up rated premium. I would ask the client if you can take a look at the Farmers quote to make sure it is rated correctly. This agent is probably a newbie.

What would lead you to believe that?

[gregcw]

Chances are that the Farmers agent quoted the commercial auto wrong. When the policy issues it will come back with an up rated premium. I would ask the client if you can take a look at the Farmers quote to make sure it is rated correctly. This agent is probably a newbie.

What would lead you to believe that?

Probably the fact that Farmers has historically thrown new agents up against the wall to see how many sticl and doesn't provide them with adequate training.

I am one of those agents that stuck, but only for seven years. Now I'm and I/A with 27 years in the business.

[justthere]

The reason that I believe the prior post about the Farmers agent not knowing what they are doing is because it is mostly true. I am in California and I am a Farmers agent. There are over 1,000 Farmers agents in my area and I would consider about 10 of them as my competition. Most are simply Auto & Homeowners agents and have no clue as to how to even spell Commercial, much less write it. That being said, their Commercial Auto product and their Garagekeeper's product are designed quite well with good options. If the agent quoted it online, odds are it will come out how they quoted. I would still review it to make sure the agent actually entered the information properly. It is quite possible that the client is insured incorrectly. Also, there is a completion discount available with some coverages.

[Rob]

The reason that I believe the prior post about the Farmers agent not knowing what they are doing is because it is mostly true. I am in California and I am a Farmers agent. There are over 1,000 Farmers agents in my area and I would consider about 10 of them as my competition. Most are simply Auto & Homeowners agents and have no clue as to how to even spell Commercial, much less write it. That being said, their Commercial Auto product and their Garagekeeper's product are designed quite well with good options. If the agent quoted it online, odds are it will come out how they quoted. I would still review it to make sure the agent actually entered the information properly. It is quite possible that the client is insured incorrectly. Also, there is a completion discount available with some coverages.

Is the insured getting a discount by doing their commercial auto and workers compensation with that agent? In other words, if he doesn't get his workers compensation through Farmers, is the commercial auto still the same price?

[steve32]

Did the new agent even ask for a drivers license or run the mvr report?

[justthere]

If the policy is just Commercial Auto, there is no extra discount for having the W/C with Farmers. If they include the Garagekeeper's coverage, then the answer is maybe. If it is an older policy, there could be a discount. Under the newer program, there is no completion discount. There is a discount on the commercial auto if it is attached to a package. I hope that helps.

[Rob]

If the policy is just Commercial Auto, there is no extra discount for having the W/C with Farmers. If they include the Garagekeeper's coverage, then the answer is maybe. If it is an older policy, there could be a discount. Under the newer program, there is no completion discount. There is a discount on the commercial auto if it is attached to a package. I hope that helps.

It is a commercial auto policy without Garagekeepers and it would be a new policy. It is not attached to any other policy. I think it is unethical for a Farmers agent to claim there is a discount for the commercial auto only if they move their workers compensation as well. Any other Farmers agents want to comment?

[justthere]

It is not only unethical - it is just down right dumb. It is obvious that the client will figure this out soon enough and the client and agent will part ways. It is so much easier to sell honestly. That way, you don't have to remember who you lied to and what you lied about. If that agent is dumb enough to try and sell price and lie about it, it will come back to haunt him and he will not be your or my competition for long.