Cost U-Less Insurance

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Never Use Cost U Less Insurance (You Must Read)
Posted by on
REDDING, CA, ALASKA -- Recently, my driving record took a hard hit forcing me to look for a new Auto Insurance Company.

I too was offered a reasonable telephone rate by Cost U Less Insurance. I was asked to come to their office to sign papers. I sat in their office sooo long, I was tired and just wanted to get this over with. The rate kept going up and up. (The Broker told me that there was a small problem that she could clear up later and my rate would then go down (IT DIDN'T). I was asked to write two checks, 1) a DEPOSIT, 2) the FIRST MONTHS PREMIUM.

Two weeks later I found a Broker who got me a rate LESS THAN HALF THE PRICE OF COST U LESS. Cost U Less 6 mo. Premium was over a thousand dollars, Schraeder Insurance found a 6 mos. premium for $449 with NO FEE. Cost U Less charged me a $220 broker fee for this expensive policy and did not even mention it to me. What they called a "deposit" turned out to be a non-refundable brokers fee (by the way, the insurance company pays that fee, talk about a double wammy).

I spoke to customer service at COST U LESS. They couldn't care less that I found a rate less than half of what they found. And, they refused to give me a refund.

I am very happy with Schrader Insurance Agency in Redding. I got the best rate ever and no Brokers Fee. Cost U Less Sucks!!!
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Cost U Less Suckss on 03/21/2010:
Just to let you know, I can understand your pain you went through there. They do this to everybody!! They are trained to bait and switch like that.
1) You didn't pay the down payment and the 1st month when you gave them 2 checks. What you did is paid their Broker Fee with that 1st and 2nd check. All they did was get more money out of you by collecting that 2nd check. That 2nd check went straight to their Broker Fee and nothing other than that.
2) The insurance companies don't pay any broker fees, they only pay them a commission based on the premium only. They negotiate a percentage to pay a Broker and Cost U Less gets high commissions if they place a certain number of apps through particular carriers. Usually anywhere from 15-20% is what they get paid from the Insurance company. So if your straight Premium was $1000(not including broker fees) then they would get $150-200 from that Insurance COmpany.
So now they charge you a $200(like your situation) or a $300 broker fee and they just made $350-$500 off of just that 1 client.

This company is a major scam artist and they have it where the consumer is just paying them high broker fees so that way the Rich Get Rich and the Poor get Poorer. If you only knew what their wages were there. From the President, to the Vice Presidents down to the Managers..Its ridiculous!!! All because they do the Bait & Switch on consumers. You should see these peoples houses and the cars they drive. Un-Real!!! I'm sure it would be nice to own multiple homes and vehicles all by ripping people off and they sure act that way too. They act like they are much better than everyone else with their noses high in the air.
Just remember they are 2 faced. If you walk in the door there, you will get good treatment. Once you pay them Their HIGH BROKER FEE then you are nothing to them except another victim of the BAIT AND SWITCH.
STAY AWY FROM THEM. Don't pay the High Broker Fees and reward the greedy rich people who sleep well at nigh robbing the people who are working and living pay check to pay check. Spare yourself!!!
Anonymous on 03/21/2010:
If they are breaking the law that is one thing. Their salaries and what they drive and where they live is no one's business and not relevant.
Furious on 03/17/2012:
I called for a quote which was great,went to the office, only took money for the amount that was given to me over the phone and told them that,they said fine-they asked if I had a visa just to have on record until I can pay the balance in 2 wks. At home I checked my acct and they pulled $1 out ( yeah it maybe only a dollar) but they had no permission to take anything out, it was only to hold. I then found out thx to my mom that until I pay $150.00 balance that I'm not covered until its all paid first !!! I got burned!!! And now I'm going in tomorrow to cancel this insurance. I'm a young women , thought I was getting a good deal and sad to say they screwed me over!!! And the guy didn't tell me that he was charging me $193.00 broker fee he had me thinking it was for my insurance.
princess elbert on 03/22/2014:
I canceled My Insurance with them they made me pay $ 420.00 down payment I thought it was because I had a Benz Jeep.. Came home called Allstate they told me $157.00 no broker fee I called cost u less and canceled within 24 hours went in and signed papers the Abraham from Cost U less is a Scam artist soon as I came he ask me was,u saved,and started talking about church Very UnProfessional I'm still waiting on my Refund $420 its been almost a month..(do not do Business with
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Scam from Cost U-Less Insurance
Posted by on
CHICO, CALIFORNIA -- For anyone who is considering to get car insurance from this company. I want to make the consumer aware that this company is a car insurance broker, who have access to many different companies just like Eastwood Insurance does. When I called Cost U-less insurance from the Chico, CA. brach office they gave me a quote through the phone that I thought was a good deal. I showed up to their office and the quote change to a much higher insurance quote. They also charge me $250.00 for their broker fee. My brother also went through this company and got charge the same price, when he cancelled his insurance a month later from Cost U-less Insurance they refused to give him a refund. I also run into one of their agents at a night club and I told her about my experience about her company. I told her that Cost U-Less Insurance was a rip-off company and she agreed to my story. I highly recommend not to get insurance from this company because their services and prices are bogus and extremely poor.
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glc on 10/14/2006:
You should always be wary about dealing with a company named "cost u less".
sevenwords on 11/21/2006:
Well if you had a problem with the price you were charged then why did you pay? Usually with insurance if there were certain things not disclosed over the phone which are then discovered once youre there, the quote can change. Are you sure you didn't mislead the agent on the phone? I have had insurance with the same company for 6 Years and have received nothing but excellent customer service and always encountered friendly staff in the office.
xlurker on 09/20/2009:
Cost U Less Insurance,, promises a $25 check to people for whom costuless cannot find car insurance cheaper than current coverage in print ads costuless has been running in Metro, the San Jose/Silicon Valley alternative weekly tabloid newspaper. costuless refused that promised $25 check to me, even though I satisfied every particular of that costuless offer.

This deceptive and unethical business practice lends no credit to Metro newspapers and is particularly reprehensible in an insurance enterprise upon which customers particularly depend to make payments as promised.
Cost U Less Suckss on 03/21/2010:
Cost U Less Insurance is a complete rip off of an Auto Insurance Brokerage. They train their Brokers to low ball every quote to just get them in the door and then from there they will try and charge you the maximum broker fee that they can which is $300. They are good at the bait and switch. If you ever go in to make a change on your policy they have to make the change for you and cannot deny the change, however they will LIE to you and tell you the current company that you have is way too much money and they have a better company for you. This is a LIE 99% of the time. They do this only to charge you another broker fee as this is how they are paid...Commission Only!!! Do not get a policy from this greedy company as you will only learn that they do not care about their customers at all. They only see you as a $$$ when you walk in the door and after they got your $$$ then they move you out like cattle and then treat you that way there on out. Don't learn the hard way and take advice from peoples bad experiences there. Every location is the same so don't let that fool you. Remember they train everyone that way, to BAIT & SWITCH and then charge you high Broker Fees. You can get way cheaper policies by going directly to the company rather than this brokerage. It's mandatory they quote you as low as possible. They won't ask you how long you have been driving, your driving record, the exacto coverage you want and they will always..ALWAYS, mind you, quote you the lowest rated vehicle as well as quote you driving 1 mile to work even if you drive 50 miles to work. This is another tactic to quote you the LOWEST Rate possible to get you in the door. Remember if you do go there and the price changes for whatever BS reason they give's all a scam and a part of their tactics of charging you that broker fee. Broker Fees are negotiable and you shouldn't have to pay them one at all. Just go somewhere else that doesn't charge Broker Fees and save that money in your pocket as they will NEVER Refund it back to you. NEVER!!! Good luck on your insurance shopping but save your self the time and energy.
lildiane on 06/18/2010:
cost u less is a fraud!!! Absolutely!!!I was quoted $30. on the phone-then the price quickly jumped up to $40. a mo pymts-then out of nowhere as I'm quickly rushed through the paper work-I was told my yearly amound would be $500. the broker clearly stated that "this amount is my yearly amount for my insurance coverage" I asked for itemized statements of all money I pay and for what it was received -the broker stated she would make sure to give them to me,after giving her the money when I confronted her with not giving me the papers that I had requested-she then assured me that she will-and did not!!about a week later I received a bill from the insurance saying that I still owe the total amount-I knew that the broker INTENTUALLY,WILLFULLY,LIED,DECEPTIVE THIEVES!!!! I since have contacted the local news- I WANT EVERYONE TO KNOW THEY ARE FRAUDS & THIEVES
OMG on 03/09/2012:
I actually work at cost u less, we work on hourly VS. commission, we have to sell more than 25 apps a week to get commission, and 90% of the time we don't meet our goal.. we get paid $8 a hour less than what mcdonalds employees make... yea we might charge high broker fee's but were here for them anytime they need us ... say we charge $250 as many of you say, were actually getting paid .68 cents a day to be here for any question you have for us at any time, when someone has a question there not going to call the company they call us, if u think u got charged a 'high' broker fee then do the calculation broker fee charged divided by 365 days out of the year, and that's how much the company gets paid, PLUS the only give us 10% of the broker fee... the good brokers actually explain everything thurouly, also when u get a quote tell us ur tickets and accidents also, how long u have had ur license, we don't ask because we rate everyone with a license from CA, if u don't disclose it were not going to ask, if ur driving then u should have a license in the first place...
OMGG. on 09/01/2012:
I also work for Cost U less insurance. Like stated above we get paid HOURLY vs COMMISSION. so before people try and make it seem as if we KEEP THE MONEY "THEY POCKET" the money. that is a complete and flat out LIE. we only get paid 10% of what we charge. if you're in sales then you understand what kind of business we do if not then keep comments to yourself. as you cannot speak on what you have never worked through before! we have sales goals and commitments to hit each month in order to get paid on "commission". We don't decided what to charge people. We are prompted with a price once spoken with higher management. if you don't like the reviews then don't call us!!
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