Complaint Review: 21st Century Insurance

Thank you for your comment, but I don't know where you get your information about New York State insurance rates. Since you are from "Anaheim" (California, I presume), I can't see how you can make an accurate statement about insurance rates here in New York.

New York State has some of the cheapest insurance rates in the country, but it also has some of the most expensive. The rates vary wildly, as someone living in a rural area of Upstate New York will be paying much cheaper insurance premiums than someone living in New York City. As for me, I live in Nassau County, which is a suburb of New York City. Insurance rates here tend to be a little cheaper than the city.

My vehicle is a 1996 Ford Explorer, and I carry an insurance policy with the state mandated minimum liability limits of $25,000/$50,000/$10,000. Since my truck is over 15 years old, I no longer carry comprehensive and collision. An annual rate of $1,500 would be somewhat reasonable if I carried higher liability limits with comprehensive and collision on a brand new car, but such a high rate for minimum liability is way too expensive.

I have found insurance coverage to replace my 21st Century Insurance policy when it expires in a couple of weeks. My new six month rate (with higher liability limits of $50,000/$100,000/$50,000) will be only slightly higher than the promotional rate I was charged by 21st Century Insurance for the first six months. My new company promises that the rate I was quoted for coverage will not go up when it comes up for renewal if I continue to maintain a clean driving record.  

21st Century Insurance may have not ripped me off since I found another cheaper insurance company, but if I would have paid the ridiculously higher premiums that they wanted me to, I certainly would have been the victim of a rip off! 

I saw this posting earlier in the day and I've yet to see you show why this is a rip off.  The increase in price itself means nothing in the overall context of insurance rates in NY.  I looked up the statistics for insurance rates in NY and according to the state, the average insurance policy annually would cost you about $1500, which looks to be what you were quoted.  That fact alone leads me to believe you received a promotional rate at the beginning of the process in order to get your business.

In order for you to show the rate is a rip off, I would shop the rate around and post what a broker finds for you.  If the rate is around $700-$800 for 6 months, it would seem it's not a rip off.  If on the other hand, you get a quoted rate of about $550-$600, that would constitute proof.  Post those quotes and I think you'll satisfy that requirement....  Insofar as what your friend said, 21st Century is really no different than anyone else as far as service and policies go.  The only thing that can be different is price because all companies work on the same risk tables.....

Best of luck to you....

Hey Ken:

My last rebuttal was directed towards "hellraiser79", who admitted that he/she was an insurance company employee, and not you! I never accused you of being a shill for an insurance company... someone else did. That being said, I really don't see why you are so critical of me, and so defensive of 21st Century Insurance. Are you a lonely, bitter, old man  who has nothing better to do with his time than being a naysaying instigator who delights in taking the opposite view of what anyone else has to say? If not, then why are almost all of the comments that you post on Ripoff Report critical of the complainant? 

You are not going to change my mind about the unethical business practices of 21st Century Insurance, and I am not going to change your mind. You go on believing that insurance companies have a right to raise their rates by whatever they want. I'll maintain that insurance companies that try to unreasonably raise the rates of their policyholder are acting in an unethical manner.

I admit that 21st Century Insurance didn't actually rip me off. I never gave them a chance to do so. However, I'm sure that I am not the only one who was hit with a dramatic raise in my insurance rates after the first six months. I have already found another insurance company which will be charging me what I feel is a fair premium. As soon as my current policy with 21st Century expires, I will seamlessly transfer my car insurance to my new company. 

I have detailed my experiences with 21st Century Insurance as a warning to others who may not realize that 21st Century Insurance lures in new customers with an attractive low rate, and then dramatically raises it after the first six months. Anyone who feels that there is nothing wrong with this practice is free to choose 21st Century as their insurance company. Anyone who thinks that this is an unethical business practice is advised to look elsewhere for their auto insurance needs.

There is no need to post any further comment on this thread, Ken. Please go find someone else to harangue with unwanted critical "advice"!

While it wasn't really a ripoff, especially because the OP in the end was out nothing and took his business elsewhere, hooking an auto insurance customer in with a short term promo rate that stands to go up dramatically on renewal strikes me as a pretty crappy practice, so I shed no tears for the insurer.

I expect such promotions for credit cards and cable plans, but before reading this, it never would have dawned on me that it goes for car insurance as well.

"They raise their rates, not because of increased claims or increased costs, but because of unbridled corporate greed!"

Do you have any statistics/studies to back up your statement, or is this just your "opinion?"

"I wish that I had listened to my friend who warned me about the "bait and switch" tactics of 21st Century Insurance before I fell for their scam!"

Several have posted valid reasons why this was not a "bait and switch", but you seem to like the phrase and persist in mis-using it. Ask yourself this, "Did 21st Century offer you a specific 6 month rate and you took them up on it?  Did they then tell you when you paid for it that, oops we just increased it, the old rate isn't available?  Did they bill you for additional premiums during this 6 month term?

NO, they didn't, hence NO BAIT AND SWITCH....GOT IT!

ONE MORE TIME.....It is a PROMOTIONAL RATE and not just 21st Century uses it, try Geico, Progressive, Allstate and others.

Since it's your contention that these companies are thieves and unethical (your words) report them to your states' insurance commission as a service to yourself and the public....let us know how that works out.

Go ahead and accuse me of shilling for this company and others, I've already been accused of working for about 2 dozen others....wrong, I'm retired and was never in the insurance industry.

"he**raiser79", the person who posted the above comment, admits that he/she works for an insurance company, so of course he/she is going to defend 21st Century Insurance's practice of luring in new customers and then dramatically increasing their premiums when the policy comes up for renewal. Insurance companies (along with banks) are some of the biggest theives in the history of the world. They raise their rates, not because of increased claims or increased costs, but because of unbridled corporate greed!

My complaint against 21st Century Insurance was not posted so insurance company employees (shills) like "hellraiser79" could defend the unethical business practices of this company. It was posted in order to warn others who saw one of this company's commercials on TV and think that they are an honest company. I wish that I had listened to my friend who warned me about the "bait and switch" tactics of 21st Century Insurance before I fell for their scam!

AVOID 21ST CENTURY INSURANCE AT ALL COSTS!

Insurance rates are based on accident rates, cost of medical care, fraud costs etc.

It constantly amazes me people thing rates shouldn't change for Insurance but the company should absorb the increased expenditures, causing the profits to fall....that's the point of a businesses...to make profit.  The recent weather we've experienced east of the Mississippi and heck the wildfires in the west will cause rates to increase. That 5% that was mentioned, that is a general rate for the state. Your neighbor may get 5%, the other one 15% and another 23%....

It takes 3 years from the initial writing of a auto insurance policy for the companies to then make a single dollar of profit from a customer.

Yes I work for an insurance company, I dont like it all the time, but most of the calls I field are someone  who didn't either tell the agent something...didn't read something we mailed or didn't return paperwork needed...all the time. Im still amazed everyday with people thinking they know how insurance is supposed to be, thinking they have a grasp on actuary tables and such....shop around, there is no more longevity credit or loyalty credit...

Sorry but I have to agree with everyone else.  They are not "agreeing" with the company. There wasn't really anything to agree to.  The company is not forcing you to pay anything.  It is not costing you anything, except the time of finding a new insurance company. And it will only cost you that if you CHOOSE to switch.  You still have a choice of paying the increased rate or going to find a better rate.  The responses on here are just saying that it is common practice for many different insurance companies (and credit card companies), and it is not really a ripoff.  It doesn't make everyone like them, and it's not great customer service, but from a business pov, it must work or companies wouldnt do it.

And just to prove that everyone is not being unreasonable, go look at Charles' other posts.  Do you really want to defend an arguement that he is siding for?  Just be realistic.  Nobody is saying that you should be happy, but you shouldn't feel victimized either.

Thats how things are these days.   People condone bad business practices.   I've been called many ugly things been told i write false complaints there is no goodness in people anymore.

I'd like to thank everyone for their opinion, but I am a little puzzled as to why it seems as though so many people (with the exception of "Beldar") are condoning the unethical business practices of 21st Century Insurance.

Since I have the option of finding a cheaper rate with another company and I will not be forced to pay 21st Century's ridiculous and unwarranted 38% premium increase, I am not actually the victim of a "rip-off", but let's be honest here... I find it highly unethical for a company to lure you in with a cheap rate, and then, at the first opportunity and for no reason, to raise your rates by an unreasonable amount.

As I mentioned in my complaint, 21st Century Insurance included a letter in my renewal paperwork notifying me that they have been authorized by the New York State Insurance Department to raise the rates of all policyholders in New York State by 5%. I find a 5% insurance premium increase to be fair and reasonable. So why did 21st Century Insurance increase my premium, not by the 5% that they claimed, but by 38%? Keep in mind that 21st Century Insurance is already aware of all of my previous accidents and moving violations, and I am already being surcharged for them. This rate increase has nothing to do with me or my driving history... It has everything to do with greed!

Would any of you who are criticizing me for being upset at 21st Century Insurance for raising my auto insurance premium by 38% be as understanding if you were hit with such an increase in your property taxes, utilities, cable television, or credit card rates? I don't think so!

Since there are dozens of insurance companies writing automobile insurance policies in my state, If I am unhappy with the excessive rate increase of 21st Century Insurance, I am free to look for a cheaper rate with another company. I have already begun that process, and I have received quotes that are in the $550 to $600 range. It's a no-brainer that come January 1st, I will be doing business with another auto insurance company.

Some of you may think that 21st Century Insurance is completely justified in their practice of luring in new customers with a cheap initial rate and then raising their rates by an obscene amount upon renewal, but I do not.

The purpose of my complaint was not to incite naysayers, but simply to warn others that the cheap auto insurance quote which they received for from 21st Century Insurance may skyrocket after six months.

So no I don't work for 21st Century but I am confused. You payed a premium with 21st Century that you liked. At the renewal they raised your rate and gave you notification of the increase before you were to pay for it.......where is the ripoff? They increased there price in which you shopped around and switched to a different insurance company. So lets run through this one more time, you now pay the same or less and 21st Century did not get the money from you for the increase. Hmmmmm no, still don't see a ripoff. Listen, I know increases suck. We all hate them. They happen with any product you buy. Some how consumers think differently when it comes to insurance. Example, you drive therefore your required in order to drive to buy gas. You go to fill up the tank and realize the price for gas has increase...do you run into the station and start complaining that you didn't directly affect the gas companie so why the increase? No, you don't. Other factors besides YOU go into pricing insurance. If you was just based on your driving and you cause a claim and the insurance company pays out lets say something small, 2000 dollars. In your logic, the insurance company than should turn around a raise your premium 2000 dollars right. Give it up buddy

Don't get your cone in such a knot.  Perhaps on Remulak this is "bait on switch", but here on earth it is not.

They offered a specific rate for a specific period.  The OP accepted that rate and that is what they were charged.   So there is NO BAIT.  Unless they can show that there was a guarantee that 21st Century would cap any increase with the next renewal they can raise the rates.

Now I can understand a reasonable rate increase, but a 47% increase is an absolute rip off!
- So shop around to find another insurance company with cheaper rates.  By the way you should be doing this every renewal period anyways so you don't fall into the "trap" of just staying where you are when you may be able to get cheaper rates somewhere else.

Don't you think that if the customer knew that "Company B'' would jack up his/her rates after the "promotional period" was over, he/she would have never switched from "Company A" to "Company B"?
- If that person wants to spend the extra $250(or what ever) just because they MIGHT have to switch again in 6 months/year then that is their choice.  But I think most people would not have a problem with it...because they are saving $250.

I have a sneaking suspiction that the people who are posting nasty and insulting comments directed toward me and the OP are employees of 21st Century Insurance or some other insurance company.
- This is generally the "last stand" of people who don't have a leg to stand on.  The fact is if you actually read other reports on this site you would realize how silly that makes you sound.  But to put your pointed head at ease, I am not now or have ever been an employee of an Insurance Company.

You people are really something. I make one little typographical error and you jump all over me.

According to the OP, 21st Century Insurance promised her lower insurance premiums in order to get her to switch her auto insurance from her old company (the "bait"), but after the promotional period was over, they raised her premiums by 47% (the "switch"). Now I can understand a reasonable rate increase, but a 47% increase is an absolute rip off!

Let's say you are paying $1500 a year for insurance with "Company A". You feel that you are paying too much, so you shop around for a cheaper rate. "Company B" offers you an annual premium of $1250, so you switch companies. When your policy comes up for renewal, "Company B" jacks up your premium by 50% to $1875. Your premium is being raised, not because of tickets or accidents, but because "Company B" offered you a promotional rate in order to get your business.

Now I can understand if this cheaper "promotional rate" was disclosed beforehand, but unfortunately, it's not. Why in the world would a customer switch from "Company A" to "Company B" just to save a couple of dollars for only a year? Don't you think that if the customer knew that "Company B'' would jack up his/her rates after the "promotional period" was over, he/she would have never switched from "Company A" to "Company B"?

I have a sneaking suspiction that the people who are posting nasty and insulting comments directed toward me and the OP are employees of 21st Century Insurance or some other insurance company. Creeps like these think that there is absolutely nothing wrong with using deceptive techniques in order to reel in new customers with the promises of cheaper premiums, only to jack them up after a couple of months.

I don't know if you've heard the news, but people all over the country are starting to wake up to the fact that they are being ripped off by companies such as 21st Century Insurance (formerly known as AIG Auto Insurance) who took billions of dollars in bailouts from the United States Government (who got the money from the taxpayers). ENOUGH IS ENOUGH!

Now let the nasty and insulting comments from insurance company shills and other malcontents roll on...

A price increase is not a rip off. As pointed out by other replies, this is not Bait and Switch because the insurance company honored their advertised price for the agreed term of the policy.

"You don't know what you're talking about, Ken!"

You don't know what you're writing about Beldar!

"file a complaint against 21st Century Insurance"

A premium increase is not a valid complaint.

  I think it's ironic that your post title should accuse Ken of not knowing what he is talking about.    The fact that you called it "bail and switch" twice would lead me to believe that you actually think that means something.     Assuming you were referring to "bait and switch" , you then go on to show us that you don't have a clue about what it's supposed to mean.     Bait and switch has a very specific meaning and your definition did not even come close.   Here's a clue.  The OP was quoted a rate for a 6 month policy and received that rate.  There was no switch.

  To the OP :   There is nothing that prevents an insurance company raising it's quote on a renewal.  In fact, it's quite common with companies that use promotional rates.  Credit cards do the same thing.  

". Since there is no reasonable excuse for a 38% increase in my insurance premium, I want an explanation as to why you feel that you have the right to raise my premium so dramatically.  "

   You are not entitled to an explanation.   You are entitled to accept the new premium or go elsewhere.   

"Since we live in a free market and I am not obligated to remain a customer of a company which is trying to rip me off, I reserve the right to find a cheaper insurance premium with another insurance company. " 

  Why are you wasting your and the company's time by stating the obvious?  This is not a "right" that you have to reserve.   It's just common sense.

" I was warned by a friend (and former customer of 21st Century Insurance) that your company is unethical and you would dramatically raise my premiums after the first six months.  " 

   So now we know that both you and the people you hang around with are dumbfounded by the concept of a promotional rate.    That's very impressive.  Your parents must be so proud.

Ba#2 Consumer CommentYou don't know what you're talking about, Ken!AUTHOR: Beldar - Paramus (USA)SUBMITTED: Monday, November 07, 2011POSTED: Monday, November 07, 2011

Sorry Ken, but this sort of thing is called "bail and switch" advertising, and it's both deceptive and illegal!



Companies such as 21st Century (formerly known as AIG Auto Insurance) are notorious for these types of "bail and switch" practices. They never disclose the fact on their applications that their low rate is only a promotional rate, and upon renewal, the customer's new rate will be much, much, higher!

Since you don't even know what a "bait and switch" is called, I doubt you know it's true meaning.

It means an item or service is listed at a low price and that item/service turns out to be not available and the customer is then switched to a higher priced item/service.



Did that occur here or was the policy issued at the rate quoted?  It has NOTHING to do with subsequent renewals at the NON-promotional rate.



My suggestion to the OP would be to file a complaint against 21st Century Insurance with their state's Insurance Department

This is pure nonsense and bad advice, no "bail and switch" or any other laws are broken with a promotional rate....you really should check the legitimacy of your legal advice.

IF 21st Century is guilty of this "bail and switch" as you allege, almost all the other insurance companies offering the same type promotional deals are also guilty........NOT!



Go ahead and accuse me of working for them or the insurance industry, That would make about 20 companies I've been accused of working for by ROR posters.

Pays to shop around every time renewal time comes.  I do it every year and you would be surprised how premiums change from company to company each time.  No logic to how and why the changes happen.  But,  that's the insurance industry and their lack of logic (except to make humungous profits).

Sorry Ken, but this sort of thing is called "bail and switch" advertising, and it's both deceptive and illegal!

Companies such as 21st Century (formerly known as AIG Auto Insurance) are notorious for these types of "bail and switch" practices. They never disclose the fact on their applications that their low rate is only a promotional rate, and upon renewal, the customer's new rate will be much, much, higher!

I don't care how long it's been going on. It's still a deceitful practice which is designed to lure in customers with a low initial rate, and then zing them upon renewal! Since most customers won't want to begin serching for a lower rate after they have only been with their current company for six months, they will most likely just pay the outrageous increase in their insurance premium.

My suggestion to the OP would be to file a complaint against 21st Century Insurance with their state's Insurance Department.

and the insurance companies are doing it to get your business

Most of the advertising states "you can save up to $xx.xx when you sign up".  That means you'll go to their regular rate at your policy renewal.

Nothing deceptive. 

This same advertising gambit was used back in the sixties, so it's nothing new.

I guess one way of looking at it is you got a pretty good rate for awhile.

No...I don't work for ANY insurance company.