RateLock from Erie Insurance

[1manshow]

Allows you to lock in your auto insurance rate and avoid future rate increases. Naturally there are a few restrictions.

How popular do you think this option will be to new prospects ?

If the rate was close to what you're paying now would you switch companies to get access to this option?

 

[CaptiveGuy]

We are getting this in MD soon I can't wait. I think it will be perfect for those with clean records and newer cars. If someone has a ticket or accident coming off at renewal it would not make sense for them to do the rate lock. Also if you substitute cars you are rerated so households with newer cars would be ideal.

I asked my DM what happens if policyholders get into accidents etc. would they be cancelled? He told me in the states that have it now it hasn't been an issue. We'll see how it goes but that will definately make an annual review easy with no rate increase!

 

[Guest]

just remember, any of these gimmicks cost more.

 

[1manshow]

Really ?

How can you say that if you don't know the rating structure of RateLock ? Or that almost 50% of the current client base would receive a LOWER rate by choosing Ratelock...

 

[bobson]

Does Erie have really really smart actuaries? How can they offer ratelock?

 

[1manshow]

Personally, I think they've let the actuaries steer the ship...it's a big reason why they've experienced competitive issues. Everything is "revenue" driven with those guys. This is the first "market driven" idea I've seen Erie come up with this decade. So... To answer your original question...NO

 

[BTFuzz]

Personally, I think they've let the actuaries steer the ship...it's a big reason why they've experienced competitive issues. Everything is "revenue" driven with those guys. This is the first "market driven" idea I've seen Erie come up with this decade. So... To answer your original question...NO

LOL! Couldn't agree more....

 

[curly212]

I'm not sure it will pan out to be a big deal in terms of increased production. I sat in a meeting yesterday and I think I still feel the same way. I think the 2 year data they have said that after 3 years 30% of customers are still using it and after 5 years 8% (I know they only have 2 years data). But I LOVE the company and the effort to make this happen. I do believe it is unique and will be a great sales tool in terms of starting a conversation.

 

[Indiana_Adam]

Ratelock sounds like unlimited accident forgiveness. Though I bet at some point, a person gets dropped. I don't sell Erie, but they are great company in our neck of the woods.

The other downside I see to ratelock is those who get in at the beginning or during low rates have a good deal. However, what about the folks who get quotes down the road when Erie needs to increase the revenue from all the ratelock losses? Just thinking out loud.

I've always wondered with those gimmicks, does a person pay out more for the add-on such as accident forgiveness or ratelock, as opposed to being surcharged for a period? I imagine the good drivers would actually save money without.

 

[1manshow]

curly, I interpreted those percentages differently. I saw it as 30% of the client base made a change that would unlock the ratelock within two years and only 8% would Not have made the change to initiate an unlock ....hmmm, maybe I was dozing off a bit