Tier rating is not new and has been around a long while. Most large companies or insurance groups have several companies within their group umbrella that facilitate the different tier (preferred, standard, non-standard). For example Farmers Insurance Exchange is a preferred company but within its group they have sister companies to handle the standard biz (Mid Century Ins). This way they don't have to turn away business. A couple of tickets and an accident isn't going to get you into the preferred company but if you clean up your act they will move you to the preferred company or not.
Jumping to other companies doesn't create preferred business as most claims come from business that's been enforce for less than six months. So be careful in jumping ship as you could be headed for a big increase in 6 months.
Not saying you shouldn't shop as companies go through peaks and valleys. If a new CEO comes in from sales and he wants to put business on the books they usually relaxes underwriting rules and drop premiums to boost revenue. If the CEO comes from underwriting also know as the sales prevention department he maybe there to clean up poor profitability. Underwriters hate fast cars, hot chicks and martinis.
Jimmy aka sled driver
