OT Car Insurance Question

[adallak]

Is that just me or others have a hard time with insurance companies as well? Some examples. A couple of years ago Progressive gave me a quote and after I paid I received a policy which was some $200 more then we agreed on. I called them and did not get any intelligible explanation from them. When I asked to cancel, they said "okay" but we will charge you $50 for termination!

So I switched to Liberty Mutual. They were nice in the beginning, but when it was time to renew I received a very funny letter indicating "if they do not hear from me by some date , they will automatically switch to more expensive policy"! It was so stupid that I even reread that statement. It's like if you do not tell us by Nov 01, 2006 you are a man we will consider you a woman.

So, I called them and asked to cancel. They "apologized" and asked to stay with them. It was the "other" clerk who made a "mistake". Good cop bad cop, I guess. Well, now it is time to renew again. They increased the premium again. I did not have any accident or ticket for six years, and the car is barely driven! I spent for insurance more than for fuel! Please advise what should I do. I am usually very nice to people, but God forbid someone takes advantage I become really nasty.

Is the car insurance mandatory?

[JimD]

Is the car insurance mandatory?

Varies from state to state; but I certainly hope liability coverage is mandatory and enforced.

[PAUL T]

It depends on what state you are from. In West Virginia we have to have at least liability insurance. We also have to pay for uninsured motorists. Insurance is a racket, you never know what coverage you have until you need it. My wife works for a State Farm agent and is licensed in West Virginia, there are a lot of programs and discounts they don't always tell you about to make your insurance cheaper. I complained about a vehicle I had owned for 8 years and had full coverage on. The premium was more for full coverage at 8 years old than when it was new. I would try to find a good independant agent to take care of you and your concerns.

[adallak]

It depends on what state you are from. In West Virginia we have to have at least liability insurance. We also have to pay for uninsured motorists. Insurance is a racket, you never know what coverage you have until you need it. My wife works for a State Farm agent and is licensed in West Virginia, there are a lot of programs and discounts they don't always tell you about to make your insurance cheaper. I complained about a vehicle I had owned for 8 years and had full coverage on. The premium was more for full coverage at 8 years old than when it was new. I would try to find a good independant agent to take care of you and your concerns.

Thanks Paul,

I just cannot take these scamers anymore, had to vent... Is not it illegal increasing the premium despite I have had clean record all the time?

[Cadillac Jim]

There are many industries where there are no rules beyond fraud law, or breach of contract and other tort laws. These include the insurance industry, real estate brokerage and sales, used car sales, etc. My rules in these industries are basically caveat emptor and common sense, i.e. read the fine print, run the numbers before you sign up, etc. Once upon a time it was a lot worse -- if you needed insurance to buy a new (or used) car, the insurance was a lot more expensive than the same coverage if bought without a leinholder, for example.

An independent agent that handles all your needs through different companies was once the only solution and is still a good solution, so I agree with Paul T. These agents deal with a selection of companies and choose the one within that selection that is best for your particuar policy. They also are generally knowledgeable about how do deal with special situations like yours -- an older car that is rarely driven, and an excellent record.

When I was (much) younger, at one time I had two cars and three motorcycles. My insurance agent was an independent, and he had one main policy on the car that I drove every day. He had a rider on the Corvette that I drove occasionally, a main coverage on the motorcycle that I rode a lot, and riders on the other two. A rider is a line item addendum that adds coverage at nominal cost. The rationale is simple -- you have one driver, and any difference in premiums due to the particular vehicle are pro-rated by miles driven per year. The first year that I had the motorcycle, I didn't ride it much and it was covered on a rider. Once I started riding it every weekend, it got its own policy. The Corvette had comprehsive coverage, but I carried only liability on the other vehicles. I carried minimum liabilty on the motorcyles and a prudent amount on the cars that significantly exceeded legal requirements.

If your situation is simpler -- only one or two cars, and only one driver in the household, say, then a first-line company like State Farm or Allstate may be able to suit your needs. One of the companies that has a lot of ads on TV advertising for rates, like Geico, may or may not play shell-and-pea games with the rates like you describe. Others may have a different personality when you start to do business with them. Geico is known to filter out anyone who has had a ticket or accident in the household in their application, for example, and I doubt that they have "accident forgiveness" like Allstate, State Farm, and other companies that compete on the basis of service, not up-front rates.

[Ed Hall]

You might try Nationwide insurance. I've have had very good luck with them and haven't found any other company very much cheaper.

[PAUL T]

Thanks Paul,

I just cannot take these scamers anymore, had to vent... Is not it illegal increasing the premium despite I have had clean record all the time?

They justify it by raising everyones rates or by saying your area has had more claims than other areas and they need to raise the rates in your area.

[steve6]

I honestly hate insurance companies, you are at their mercy... because you have to have it.

I have never had Collision coverage... and when I got in my accident(someone rear ended me), I though it would be a huge pain in the *smurf*, but since it wasnt my fault, my insurance company was very cool about it, they orginized everything and rental car etc, they gave me a fair value for the car, and it was very quick.

One thing that I found totaly rediculas was, they give you a rental car (I did not have coverage for it, but since it was not my fault, they othr insurance paid), as soon as they gave me settlement, I was told to take the rental car back. And I asked the lady how I was suppose to find a car the same as mine, as I had looked for months for a certain color pattern and options, and she said we understand, but its policy.

-steve

[Ranger]

I had Farmers for years, then they started raising my rates. After filing an $800 home owners claim (1st time in 20 years) they doubled my home owners premium. Car rates were going up as well. I dumped them and went with Erie Ins. I got the same coverage on the house and 2 cars (1 yr. policy) for what Farmers was charging me for 6 months. Farmers not only lost me, but both of my daughters as well.

[Marika]

Is that just me or others have a hard time with insurance companies as well? Some examples. A couple of years ago Progressive gave me a quote and after I paid I received a policy which was some $200 more then we agreed on. I called them and did not get any intelligible explanation from them. When I asked to cancel, they said "okay" but we will charge you $50 for termination!

So I switched to Liberty Mutual. They were nice in the beginning, but when it was time to renew I received a very funny letter indicating "if they do not hear from me by some date , they will automatically switch to more expensive policy"! It was so stupid that I even reread that statement. It's like if you do not tell us by Nov 01, 2006 you are a man we will consider you a woman.

So, I called them and asked to cancel. They "apologized" and asked to stay with them. It was the "other" clerk who made a "mistake". Good cop bad cop, I guess. Well, now it is time to renew again. They increased the premium again. I did not have any accident or ticket for six years, and the car is barely driven! I spent for insurance more than for fuel! Please advise what should I do. I am usually very nice to people, but God forbid someone takes advantage I become really nasty.

Is the car insurance mandatory?

With the exception of one for two states, car insurance is pretty much mandatory throughout the USA and what a lovely way it is for the insurance companies to make money so easily.

[johnnydone]

for what its worth ive had state farm for many years becaus of no accidents my ins has been going down my last premium was 258 for full coverage on my cadillac thats for 6months

[JohnnyG]

To answer your original question, most states require liability insurance, as others have stated. Some states permit you to be "self insured" whereas, you prove that you are willing and able to cover any and all costs to cover an accident, you become bonded, and set aside a certain amount of money for that specific occasion. I'm sure that its a lot of money, but hey, it's all a gamble right?

I had Farmers for years, then they started raising my rates. After filing an $800 home owners claim (1st time in 20 years) they doubled my home owners premium. Car rates were going up as well. I dumped them and went with Erie Ins. I got the same coverage on the house and 2 cars (1 yr. policy) for what Farmers was charging me for 6 months. Farmers not only lost me, but both of my daughters as well.

I had a similar expierience with Farmers, and no longer have them. I have also heard that Erie is very good, but never used them. I currently have AIG, and find it reasonable at just under $600.00 for one year on the Caddy, one driver, over 50 but under 65. They also threw in "Roadside Assistance" for free....24 hrs a day, like AAA!

As for homeowners insurance, I currently carry Westfield Insurance out of Ohio. Just remember, if you have a claim of any kind, it stays on your record for 5 years. Your premium will be increased accordingly. I've been paying about $700/ per year, give or take, for homeowners insurance since 1975 (about 31 years) I had one claim which I got a check for about $250.00, and they wanted to raise my rates! Not only that, the NEXT company wanted to charge me higher rates as well! Westfield did not...but once again it was through an independent agent.

[Ranger]

I have also heard that Erie is very good

Well I have not had them that long, but I can tell you this much. I don't think it was a month or two after we switched that my daughter took her '99 SLS (pre Ruby) into the city. Spent the night at some friends and parked the car on the street. When she came out in the morning, she found the drivers side mirror hanging and a very small crease in the front fender flare. It was obviously side swiped by some drunk. She was lucky to get off that easy. Erie never baulked, fixed it quick and even got her a loaner. The only penelty was that she would loose the 8% reduction the next year for not having a claim. I think the bill was about $1200 if I recall.

[franey]

yes, we all have to have insurance but you do not need to like it. First , the ads they run and what happens when you have an accident are two totally different things. One only has to look at the mess on the GULF COAST after KATRINA, Independent agents are good , but remember they do not settle the claims. If you happen to know a claims rep , or a friend that runs a iindependent claim company, on the QT. they will tell you that if the claims do not come back low then you WILL NOT RECIEVE future work from that company. THis IS THE FACT OF LIFE REGARDING INS. they have all the high cards , and it does not matter wheirher they are right are wroung, they HAVE DEEP POCKETS, and they will tell you in a heart beat ,if you do not like it TAKE US TO COURT . The reasons that they give for raising your rates are usually BULLSHIT, I am 56 and my 96SLS, was my wifes car and was driven about 5 to 6 thousand miles a year. SHE passed away in june from cancer and i advised my ins, comp of this in july, prior to my 6 month renewal date. They said how sorry they were , and then told me my rate would be going up , now bear in mind i can only driive one vehicle at a time and i am a truck man. The SLS, still resides in the garage, they said i was a risk because i was now single. Well it is obvious that they had never been married for 35 years, and did not realize at my age the only thing you do when it gets night is eat supper and go to bed. I do not feel like i am NIGHT CLUB PERSON, Not only that i advised them that i was now retired and was raising my 7 year old grandson, and spent my days as a volunter at his school for the PTA. Yes it was hard for me to see that i am now a greater risk. REMEMBER it is not a matter of IF YOU ARE GOING TO GET SCREWED BY THE INSURANCE COMPANY BUT A MATTER OF WHEN

SIGNED A GREATER RISK

[adallak]

yes, we all have to have insurance but you do not need to like it. First , the ads they run and what happens when you have an accident are two totally different things. One only has to look at the mess on the GULF COAST after KATRINA, Independent agents are good , but remember they do not settle the claims. If you happen to know a claims rep , or a friend that runs a iindependent claim company, on the QT. they will tell you that if the claims do not come back low then you WILL NOT RECIEVE future work from that company. THis IS THE FACT OF LIFE REGARDING INS. they have all the high cards , and it does not matter wheirher they are right are wroung, they HAVE DEEP POCKETS, and they will tell you in a heart beat ,if you do not like it TAKE US TO COURT . The reasons that they give for raising your rates are usually BULLSHIT, I am 56 and my 96SLS, was my wifes car and was driven about 5 to 6 thousand miles a year. SHE passed away in june from cancer and i advised my ins, comp of this in july, prior to my 6 month renewal date. They said how sorry they were , and then told me my rate would be going up , now bear in mind i can only driive one vehicle at a time and i am a truck man. The SLS, still resides in the garage, they said i was a risk because i was now single. Well it is obvious that they had never been married for 35 years, and did not realize at my age the only thing you do when it gets night is eat supper and go to bed. I do not feel like i am NIGHT CLUB PERSON, Not only that i advised them that i was now retired and was raising my 7 year old grandson, and spent my days as a volunter at his school for the PTA. Yes it was hard for me to see that i am now a greater risk. REMEMBER it is not a matter of IF YOU ARE GOING TO GET SCREWED BY THE INSURANCE COMPANY BUT A MATTER OF WHEN

SIGNED A GREATER RISK

Franey, sorry to hear about your wife. As for my insurance company, they are just paying back. This time they offer the current policy but with a premium, which is exactly one they wanted last time for a better coverage. What a coincidence! Oh well...screw them. I probably should not have posted this topic here. Thank everybody for replies.

[Ranger]

They simply use averages. Singles are a higher risk and when you suddenly fall into that catagory, you pay their price. They do not look at you as an individual. Unfortunate, but true. I also found out that they are using your credit rating as a risk assesment. Apparently if you pay your bills on time, you are more responsible and thus a lower risk.

[The Fred]

Insurance companies are a big crooked pile of scum.

That said,

If you hit my car and you don't have insurance..

It would be a great idea to have plenty of cash

[adallak]

Anybody with Geico? Their rates seem to be reasonable, and it is easy to apply on-line. I would buy if there are no known gimmicks.

[terrylange]

I did some research a couple of years ago when my rates kept going up in spite of no accidents and no tickets. The usual excuse is that parts are getting more expensive, and many of the body parts on Cadillacs aren't available from the aftermarket suppliers that make the cheap doors and fenders that don't fit quite right. I did notice while shopping around that many of these "no middle man" insurance companies like Geiko only offer 6 month policies. I assume the reason for this is so they can raise your premiums twice a year once they have you hooked.

I had my own experience with the Auto Club of Southern California last year. An older gentleman rear ended me in his Lincoln Mark VIII, causing a typical whiplash injury. I had varying degrees of discomfort and limited motion for about 10 weeks after the accident. I was seen by two doctors, who both confirmed the diagnosis, and received 11 chiropractic treatments. My medical bills totaled $1800.00, and my time missed at work had to be made up after hours. The other guy's insurance company paid to repair my car, but arbitrarily decided I couldn't have been injured, and closed the case. I had to take the poor old man to small claims court and get a judgement against him before the Auto Club would pay. If I was him, I would be pretty pissed at the Auto Club, since he now has a judgement on his record due to his insurance company's unwillingness to provide the coverage he has paid them for. This whole claim took 14 months to settle. I had been with the Auto Club myself for about seven years, many years ago, but am sure glad that I dropped them if this is how they treat their clients.

Terry