Anyone have 'TruStage' auto / home insurance?

[asphaltgambler]

TruStage is apparently offered to many gov't credit union members through-out the US. I am a Local CU member and recently received an 'offer' that their 'suranze is better and cheaper. Problem is.......... it is underwritten by Liberty Mutual which seems to have a lot of bad press / reviews from the policy owners and the damaged property owners.

I do not know to what extent Liberty Mutual has their hands in this. I'm sure if I call my credit union that they will give nothing but glowing reviews of their service and claims payment.

Anyone know first hand???

[MRM]

I've never heard of TruStage before, but it appears to be offered through CUNA Mutual, which makes sense because CUNA is an affinity brand insurer that offers their product through credit unions.

http://prtlimages.cunamutual.com/imageserver/publishedimages/publish/cunamutual_com/catalogs/portlet_folder/public/web_content/resource_library/resource_centers/league/media_files/article_trustage_insurance_program_launched__media _file__da_1994334__2.pdf

The press release says that the life policies are underwritten by CMFG Life Insurance Company, but then it says that the P&C policies are underwritten by "leading insurance companies". That means that CUNA/TruStage is essentially subbing out the P&C policies. They probably adjust them themselves; they're just underwritten by someone else. I can't tell one way or the other for sure.

Liberty Mutual might have a hand in the business. It would make sense if they did. They market heavily in the affinity markets, like credit unions, college alumni associations, and other groups where they can find relatively low risk pools of insureds. I also think there is a business connection between CUNA Mutual and Liberty. I'm pretty sure that Liberty bought part of CUNA about 15 years ago.

Anyway, it's just a different way of marketing insurance to a group of people who their actuarial tables show have a good risk, so they're able to offer decent rates and save some marketing overhead by keeping it in the credit union family. At this level insurance is basically a fungible product. That's why you get companies like Progressive and GEICO that basically occupy the same space with the same business model. It's just a numbers game for the insurer - keeping their marketing costs and underwriting losses lower than the premiums they bring in and they are good to go.

As for Liberty, they are no worse and no better than any of the other large insurers in the country. If you search you can find the same reviews for every insurer. They don't compete on pure price like GEICO and Progressive, they don't compete on service like USAA, they're in the middle of the market trying to offer value in the form of a little higher service than Progressive for a little more money, but less service and less cost than Chubb or USAA.

[asphaltgambler]

WOW! thanks for the very detailed reply! I may think differently now and check into it.........

[MRM]

The fact that they identify the life insurance company but don't identify the P&C company probably means that they underwrite each policy with whatever company gives them the best rate. The only question I have is whether your claim is adjusted by TruStage or the company that underwrote the policy. If you get adjusted by whatever company holds your policy, it would seem to be a bad deal, since you're being adjusted with a company you don't have a direct relationship with. If "TruStage" adjusts its own claims, it's probably no different than any other insurance company.

[asphaltgambler]

THAT is what I need to know! I didn't think of the relationship that way. That is the 1 question I will ask the rep. Thanks!