So I call. The insured tells me that she just got Erie's renewal for the HO and it dropped from $526 a year to $410, over a $100 premium drop. Her current agent said Erie is lowering their rates.
Lowering their rates or buying market share....hm? Now I know why I stay far away from personal lines. I probably spent more time and gas (taking pics) than I would make for the next two years. Yep, in 2 years ya break even. That's one hell-of-a good business model.
Now compare the above to this scene:
I am good at doing 98% of the work on our cars, from breaks to you name it. I can do it. But it is very rainy weather and my wife's Caddie needs front breaks, I can't do them in the rain.
![Sad :(](./images/smilies/icon_sad.gif)
Ok, what the??? I can replace the pads on both sides in 40 minutes and the OEM top end pads are $47. So they are getting $150 in labor for a forty-five minute job. Actually the garage has a lift and can do it quicker than me.
Yes, I know overhead but we all have overhead. If I sold a $400 HO policy, my brokered commission is $40 and I've spent more than 30 minutes on the darn thing.
She has been a client off and on, she's also a business person and understands when a company buys the business. She may move to me on a goodwill basis. The Erie has her dwelling coverage to low and therefore haven't done their job. Doing the homework and goodwill do count....don't they?
![Confused :?](./images/smilies/icon_confused.gif)