by Guest » Fri Feb 06, 2009 01:29 pm
Hello,
Please kindly help me my concern.
I had a minor auto accident last year, I was at fault, so my auto premium went up at renewal last year, but my auto premium went up again at renewal this year as well, will I get a rate increase at every renewal? or should the rate only be raised once and continue for 3 years as I have heard from my friends?
Since I have an accident on my record now, in your opinion, if I try to switch and get quotes from some other auto insurance carrier, in general, will I usually get an even higher rate then my current already increased rate? or the other carriers might quote me a lower premium even though I had an accident last year, but because the other carrier did not pay out liability coverage for me, so they might quote me a lower rate?
Any information will be greatly appreciated.
Please kindly help me my concern.
I had a minor auto accident last year, I was at fault, so my auto premium went up at renewal last year, but my auto premium went up again at renewal this year as well, will I get a rate increase at every renewal? or should the rate only be raised once and continue for 3 years as I have heard from my friends?
Since I have an accident on my record now, in your opinion, if I try to switch and get quotes from some other auto insurance carrier, in general, will I usually get an even higher rate then my current already increased rate? or the other carriers might quote me a lower premium even though I had an accident last year, but because the other carrier did not pay out liability coverage for me, so they might quote me a lower rate?
Any information will be greatly appreciated.
Posted: Fri Feb 06, 2009 03:05 pm Post Subject:
You would need to call your agent to find out why the rate increase this year. It may very well be an across the board increase. An accident usually puts people in a different tier (group of people with the same type of risk). The carrier might be increasing rates for everyone in that tier.
Insurance companies report accident history information to a system named CLUE. All insurance companies will pull a CLUE report and will see your accident. Also, on the application it will ask if you've had any accidents. Most carriers will write a higher premium for a recent accident such as yours. But some might write a lower premium.
Posted: Sat Feb 07, 2009 02:27 pm Post Subject:
It may very well be an across the board increase.
I'm pretty confident that this is the reason for the increases after the first renewal after the accident...OP they can't rate you up every renewal for one accident, however after the inital increase for your chargeable accident, an across the board increase 'could' happen every renewal, but to everyone not just you...do as tcope advised double check with your agent or the companys policy services though to make sure a mistake hasn 't occured.Posted: Tue Feb 10, 2009 11:03 am Post Subject:
Dear tcope and Lori,
Greatly appreciate your input.
I checked with my agent and the response was it was not an across the board increase and my agent could do nothing about it unless I want to lower my coverage which will then bring down my premium, but I have no intention to lower my coverage, and I asked my agent to check again, my agent said that I had 5 different discounts added to my premium before the one accident, at the first renewal, my carrier took off 1 discount and caused the rate increase, and this time at the second renewal term, my carrier took off another discount and therefore the rate increased again, and my agent said that this is up to my carrier and agents can do nothing about it. Are insurance carriers allowed to do this? I understand I was at fault for the accident, but will the carrier increase my rate at every renewal? if my agent cannot help, who should I talk to? also, according to tcope
Insurance companies report accident history information to a system named CLUE. All insurance companies will pull a CLUE report and will see your accident.
does insurance carriers write rate increase based on the system calculation or is it done by someone manually?could you please help me with these questions, thank you very much.
Posted: Tue Feb 10, 2009 11:48 am Post Subject:
Are insurance carriers allowed to do this?
yes and no...I understand I was at fault for the accident, but will the carrier increase my rate at every renewal?
no I don't understand that one either...if my agent cannot help, who should I talk to
Contact the policy services dept for the company then ask to speak to someone who can explain to you how you lost another discount a year after the accident...does insurance carriers write rate increase based on the system calculation or is it done by someone maually?
i would say 99.9% of the time its system generated...you can manually request that an insured's rates be looked into (ie underwriting report sent in etc)....Please let us know what the underwriting dept or policy services dept says...i think too it might be a good idea for you to contact the consumer help line with your states dept of insurance...first though get the acruate reason behind these two increases..what were the discounts that you lost?
Posted: Wed Feb 11, 2009 12:51 pm Post Subject:
Thank you Lori.
...first though get the acruate reason behind these two increases..what were the discounts that you lost?
my agent said both discounts were related to good driving and safe driving discounts, can insurance carriers continue to cancel my discounts? my agent said that it is up to the carrier and we cannot do anything about it? :cry:
Posted: Wed Feb 11, 2009 12:56 pm Post Subject:
my agent said both discounts were related to good driving and safe driving discounts, can insurance carriers continue to cancel my discounts?
My guess is they missed taking one of them off at your first renewal...should've taken both of them at that time..i would expect you to lose those for an at fault/chargeable accident...my agent said that it is up to the carrier and we cannot do anything about it?
well that's probably right...if your next renewal shows another increase, definately look into it but I doubt there are any other discounts they could remove...frankly if I were you I'd start getting some other quotes just to see where your company is in relationship to their premiums...doesn't cost anything to find out...be sure and be honest for an honest quote about this accident.Posted: Wed Feb 11, 2009 01:31 pm Post Subject:
Thank you lori,
My guess is they missed taking one of them off at your first renewal...should've taken both of them at that time..i would expect you to lose those for an at fault/chargeable accident...
Thank you for letting me know, so is mine renewal calculated manually?
since
i would say 99.9% of the time its system generated...you can manually request that an insured's rates be looked into (ie underwriting report sent in etc)....
my accident was a really minor one, does insurace companies take out all of your good driving discounts with just one incident first time in my life?
and do you know if the insurance company cancel discounts based on minor or severe accident? say if you have a minor accident, they only take off 1 discount, and if you have a severe accident, they take off all of your discounts? or the severity of the accident simply makes no difference with the carrier in canceling discounts?
Posted: Wed Feb 11, 2009 01:54 pm Post Subject:
my accident was a really minor one, does insurace companies take out all of your good driving discounts with just one incident first time in my life?
If the payment eclipses their thresold for at fault loss payments usually $400-750 what was paid on your claim?say if you have a minor accident, they only take off 1 discount, and if you have a severe accident, they take off all of your discounts? or the severity of the accident simply makes no difference with the carrier in canceling discounts?
this is carrier dependent, maybe some state regulations as well...so i really can't answer that for you...sorryPosted: Thu Feb 12, 2009 10:03 am Post Subject:
Thank you lori,
If the payment eclipses their thresold for at fault loss payments usually $400-750 what was paid on your claim?
my carrier paid about $1300 for my car repair and $1100 for the other driver's car repair. seems like the payments did eclipse the $400-$750 threshold that you said. does this mean that every at fault driver whose payment eclipse the $400-$750 threshold will get the same increase? for example, my rate increase will be the same as another at fault person in which the carrier might have paid out $10,000 for liabiliy coverage, since we both have carrier payments for the other party over the $400-$750 threshold?
My guess is they missed taking one of them off at your first renewal...should've taken both of them at that time..i would expect you to lose those for an at fault/chargeable accident...
does insurance carrier check for missed cancellation of discount manually or the system will generate the renewal and find out that certain discounts was not removed at the first renewal? please let me know how it works.
Thank you.
Posted: Wed Feb 18, 2009 02:33 pm Post Subject:
does this mean that every at fault driver whose payment eclipse the $400-$750 threshold will get the same increase? for example, my rate increase will be the same as another at fault person in which the carrier might have paid out $10,000 for liabiliy coverage, since we both have carrier payments for the other party over the $400-$750 threshold?
The thresholds are carrier specific, some may have some state statute behind them as well..the amount of increase could be different as well...some will lose a discount, for the first one others will have a percentage increase etc...they would pay 100k but if not coded 'at fault' or chargeable no increase would be seen...as to the same increase for a 2k compared to a 20k claim, I can't tell you for sure again I think that is carrier specific with what the state law will allow...the company i'm insured with (everything)...first claim regardless of the amount i lose my safe drivers discount, then if i have another before i earn that back...i'm bumped to another tier (higher rate)...and so on..does insurance carrier check for missed cancellation of discount manually or the system will generate the renewal and find out that certain discounts was not removed at the first renewal? please let me know how it works.
My guess would be it's system generated, unless an agent to adjuster sends in an underwriting report...most likely at each renewal it searches for losses...that's why i call the policy services dept or underwriting dept to make sure this second one was correct.Add your comment