by Guest » Fri Oct 13, 2006 08:24 am
hey guys, I'd just like to know how the insurance companies decide about the premium hikes.
Any piece of information would be helpful since I just smashed my car downtown and since then my rates went up !
Any piece of information would be helpful since I just smashed my car downtown and since then my rates went up !
Posted: Fri Oct 13, 2006 09:41 am Post Subject:
Hi,
This is a topic thats been discussed by the forum members over here from time to time. Believe me each company has its own procedures to set this rate hike. Its never possible for your company to charge you with a certain amount and then go on to charge another person with a different amount under the similar circumstances. Thus you can never be a customer to any company who'd be contributing more towards their profit !
But yes, you always have the right to enquire thoroughly.
Any thing else that we can discuss it over ??
Regards,
Tony
Posted: Fri Oct 13, 2006 10:32 am Post Subject:
hi, your company has clearly charged you with an additional premium which is allowable.
Discuss with the agents to find out your company's procedures. Sometimes it so happens that insurers do forward their customer's insurance to some affiliate company after such one at-fault accidents. Please check it out !
This could prove to be a very costly affair attracting a surcharge and consequent rate-hikes. I'm sure you'd agree with me. regards, Fatman
Posted: Fri Oct 13, 2006 11:35 am Post Subject:
Listen, actually none of us are certainly sure as to what all would be considered as serious traffic misconducts, nor what accidents are lying in store for us!
Hence it's all the more important to get a measure of the insurance premiums that we might need to pay under such conditions. Isn't it !
hybridKlose
Posted: Fri Feb 01, 2008 12:03 am Post Subject:
The typical surcharge for the first chargeable (at-fault) accident is 25%, and charged at renewal. The carrier cannot raise your rates mid-term in this type of situation.
Tony said:
Its never possible for your company to charge you with a certain amount and then go on to charge another person with a different amount under the similar circumstances.
Sorry...wrong. I think you may have the right idea, but may have stated it incorrectly. A carrier cannot surcharge at a different percentage level for a particular activity or event , but that surcharge could easily result in different dollar amounts associated with the surcharge. Here's an example:
A 40-year old man with a liability only coverage vehicle, for example, is paying $300 every six-months for his insurance. A chargeable accident will normally surcharge (at a 25% level) an additional $75.00 at renewal (25% of $300 = $75) for a renewal premium of $275.00
A 19 year old single male insuring for liability only, for example, might pay $800 for his coverage (yes...the differences CAN be that significant). The 19-year old gets into a chargeable accident, and sees the same 25% surcharge. While the percentage increase of 25% is applied to both drivers, the 19-year old will pay an additional $200 at his renewal (25% of $800 = $200). Make sense?
There are companies that will waive increased premium charges after the first accident ("forgiveness" scenarios), this normally occurs only after you have been insured with them for some time.
Good luck on this, and let us know if you have any other questions...
InsTeacher 8)
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