Car insurance after a claim

[alec.mc 180]

Any insurance savvy members out there?

 

Last september i've made my first car insurance claim in my 10 years of driving. I was tired after working a double and hit a pole in my parking garage at work, dented my door up and ripped my mirror off. Total insurance payout was about 1400 bucks. ( not something i could of fixed myself )

 

Fast foward to this month- ( renewal ). Suprise suprise, my policy went up. From about 160 a month to 260 a month. Not happy.(2010 dodge ram 1500 )

 

When I called my insurance company ( allstate ) they gave me the stanard insurance mumbo jumbo. I then went to shop around with other companies, they all want between 300-400 $ for one vehicle because of my one claim.

 

The way it was explained to me was - A claim is a claim, anything over 1000 dollars in insurance payout with affect you.....

 

... So you mean to tell me your lumping me ripping my mirror off in a parking deck is in the same claim catogory as mowing down a 4 year old crossing the street and then flipping my car off a bridge? Come on now.

 

So! it looks like I'll have to stay with my current insurance company, since they are now the cheapest ( WTF ! ) But how long is this likely to affect me? I've gotten various replies from a year to 5 years.

 

Thanks.

 

-alec

[Jon 264]

Not sure about the length of time it will affect you, but how hard did you shop? I can't believe every company out there would write you off just for one relatively small claim. Absurd.

[BRaptor 68]

Doesn't Allstate have "accident forgiveness?"

 

Otherwise, my suggestion is to sign up with Nationwide and enroll in their "Snap-Shot" program. You drive around with a OBD-reader that detects your driving style (time of driving, speed, acceleration and braking--NOT location). If you drive carefully and for fewer than average miles for the 90 days that they have you plug it in, they'll reduce your premium by up to 20%. They took 18% off mine, they actually refunded me about $100, because I paid my 6 month premium in full ahead of time!! And the discount remains on your policy for as long as you have it

[Dan 177]

I've always operated under the assumption that anything under $2K is not worth putting in a claim for when it comes to self-inflicted damage just for this very reason.

[alec.mc 180]

I've always operated under the assumption that anything under $2K is not worth putting in a claim for when it comes to self-inflicted damage just for this very reason.

 

Live and learn I guess, I honestly didnt think it'd screw me THIS much.

 

As far as accident forgiveness, i think thats an extra premium you pay every month.

[Malsua 1,422]

I've always operated under the assumption that anything under $2K is not worth putting in a claim for when it comes to self-inflicted damage just for this very reason.

 

Yup. 1k deductible and at least 1k more than that before I'll even think about making a claim. I would probably even go to 3k.

 

Insurance is not your friend, or there to help you out. It's there to prevent a catastrophic loss.

[Dr.Jimmy Rustler 23]

car insurance, biggest scam ever.

[Wikkie2204 0]

I'm going to try to shed some light on this at least in terms of time frames. In a past life I was an underwriter and had to deal with this stuff on a daily basis. That accident, being an at fault loss, (You were the only person involved so it's at fault), at the $1001 mark and up will impact you. This typically gives you 5 insurance surcharge points, not to be confused with MVC points. Most companies will use this loss against you for your direct rate for a period of 36 months, and can impact your tiering for a period of 5 years. There's a multitude of factors associated with tiering such as homeownership, credit score, losses over a span of time etc. So hopefully that makes a bit more sense.

car insurance, biggest scam ever.

Completely agree with this statement. Having worked on the inside of one, and my wife currently works for another, this is the biggest racket ever.

[raz-0 1,259]

Hmm, you must have more going against you than just that. I have had one claim in the late 90s and it didn't affect my premiums. It happened in an at fault state and wasn't. My wife recently totaled her car, and it was only about $70 a month on the premium.

 

We've both had our policies forever and are net profitable though.

[alec.mc 180]

Hmm, you must have more going against you than just that. I have had one claim in the late 90s and it didn't affect my premiums. It happened in an at fault state and wasn't. My wife recently totaled her car, and it was only about $70 a month on the premium.

 

We've both had our policies forever and are net profitable though.

 

Nothing else against me. No tickets, No other accidents, No young drivers in the house, Im the only one on this vehicle.

 

I know people who have recent DUIs that pay less than I do now.

 

Insurance = Legal Robbery... and mortgages too!

[Maksim 1,504]

Will reply to this more from the other insurance perspective.

 

It matters as payout versus total value, and if above that ratio, you get penalized.

 

That is how it worked at the insurance company I dealt with.

 

For that reason, and others, deductible for collission is 1000, and 200 for comp.

[Maksim 1,504]

 

Nothing else against me. No tickets, No other accidents, No young drivers in the house, Im the only one on this vehicle.

 

I know people who have recent DUIs that pay less than I do now.

 

Insurance = Legal Robbery... and mortgages too!

 

No one ever complains when they get a check back from insurance company.

[Springfield1911 22]

Not sure about the length of time it will affect you, but how hard did you shop? I can't believe every company out there would write you off just for one relatively small claim. Absurd.

 

You my friend, must have never dealt with insurance claims before. Every insurance company out there will hold a claim against you no matter how big or small for a minimum of 3 years. Insurance companies are the biggest scam going. They never lose. When there is an uptick in claims ..they raise everyone for the next year. That Allstate accident forgiveness...big scam. YOU pay for it in price of the policy.

[Zerosignal 1]

Insurance companies all suck... Allstate dropped me years ago for a minor claim. F them. It's all take take take and hate to give with them. Have New Jersey Manufacturers now. Happy with them I guess.

[JLHockeyKnight 0]

Insurance companies all suck... Allstate dropped me years ago for a minor claim. F them. It's all take take take and hate to give with them. Have New Jersey Manufacturers now. Happy with them I guess.

 

I've had Allstate for 9 years and never had a problem, even after a fairly major claim ($3000 worth of damage).

 

I found a specific Allstate agent that is No BS and has always been a good guy to me and does his best to help me out. If I call and he isn't in I hang up the phone. Maybe it was just the location/agency?

 

Either way, my fiancee has NJ Manufacturers through her father, and I really want to look into it. If it's cheaper than Allstate I would high tail it out of Allstate, even after the 9 years of loyalty.

[tony357 386]

The insurance companies are ripping us off.. What we need is for them to fail and something else take over...You are going to see more and more people driving with out insurance because it is not affordable anymore..

[Springfield1911 22]

I've had Allstate for 9 years and never had a problem, even after a fairly major claim ($3000 worth of damage).

 

I found a specific Allstate agent that is No BS and has always been a good guy to me and does his best to help me out. If I call and he isn't in I hang up the phone. Maybe it was just the location/agency?

 

Either way, my fiancee has NJ Manufacturers through her father, and I really want to look into it. If it's cheaper than Allstate I would high tail it out of Allstate, even after the 9 years of loyalty.

 

I have NJ manufacturers. If your employer belongs to the New Jersey Business and Industry Association you can get the NJ manufactuers. NJM will not raise your rates when you put in a claim. That is a good thing BUT they can kick you out at any time. I had a friend that was with them for 20 years..his daughter had 3 accidents in less than 2 years. NJM told him that if he had 1 more claim he would be dropped. I have heard that if you shop around you can get insurance for about the same price as NJM nowadays.

[JLHockeyKnight 0]

I have NJ manufacturers. If your employer belongs to the New Jersey Business and Industry Association you can get the NJ manufactuers. NJM will not raise your rates when you put in a claim. That is a good thing BUT they can kick you out at any time. I had a friend that was with them for 20 years..his daughter had 3 accidents in less than 2 years. NJM told him that if he had 1 more claim he would be dropped. I have heard that if you shop around you can get insurance for about the same price as NJM nowadays.

 

Yeah my employer doesn't belong to that so I can't get NJ Manufacturers through work, but my fiancee is now on her own policy after being on under her father's policy with NJ Manufacturers for enough years. So we could just tack my car onto her policy.

[Krdshrk 3,878]

Shop around some more, man. Check Traveler's.

[Smokin .50 1,907]

My 22 year old unmarried son is in Iowa, on his own policy that we had an independant agent in his home town shop around for us. He pays $472 every six months to cover a 2003 Grand Marquis with 100/300/100 liability, uninsured, under-insured, collision and comprehensive with only a $500 deductible! That's about $79.00 bucks per month!

 

NJ is crazy when it comes to car insurance, but then when's the last time that somebody drove right up yer butt and gave you the high beams and you're already doing 75 or 80 on the Parkway, and barely leaving enough room to slow down between your fender and the car in front of you? Last month? Last week? Yesterday? TODAY? My point is we do it to ourselves by driving like A-holes. Cause we're all important and all in a fricken hurry! It isn't the Indianapolis 500 out there folks--so lead by example and leave room to do an emegency stop if you god forbid have to! I'm tired of being "drafted" on my rear bumper while I'm already doing 75 or 80. And up in North Jersey it's worse than down South. Take a ride to Cape May. On the way home you don't hit any A-holes until Toms River, and even then not so often, but by the time you cross the Raritan river, you're being tail-gated at high speed!

 

O-K, off the Soap Box for now!

 

Alec, good luck finding a company with compassion. You may want to try an independant agent that can shop several companies for you--no strings attached!

 

Dave

[TheLugNutZ 21]

I am an insurance producer so i can speak from within the industry.

 

Like others have said, the threshold is $1000. So if it is an "at-fault" accident, and the total payout exceeds $1000, then you will be surcharged for the accident for 3 years.

 

Yes you are also correct in the fact that whether its a $150,000 claim or a $1200 claim you are pretty much surcharged the same amount.

 

Your situation it s*cks, you are prob going to end up being surcharged more than the ins co paid out on the claim, but had it been a more serious accident you would have ended up being surcharged much less than what they paid out. That’s why as an agent, if someone calls me up with a minor accident, i will run some numbers and tell my client to get an estimate prior to opening the claim to make sure its worth not just paying out of pocket for.

[Smokin .50 1,907]

So in Jersey, if a 20-something has an accident that HAS to be reported, and it's their fault, the insurance companies are allowed to charge more than the accident costs them? That shouldn't be right, but I guess it is? That's the same as me paying the same to insure my Mercury so the guy with the Lamborgini doesn't pay so much, which is just NUTZZZ!

 

The whole idea of paying a few grand a year for insurance is so if you have an accident, you're covered and your life isn't ruined. Once your car insurance reaches a payment for a new car, it really hurts!

 

If a bunch of drivers start driving around without any car insurance, everybody else's rates will go up to cover those who don't have insurance, just like a friend of mine found out when they moved to New Mexico. All of the illegals drive POS's and you're lucky if the plates come back to THAT vehicle, let alone if it's insured!

[raz-0 1,259]

That's the same as me paying the same to insure my Mercury so the guy with the Lamborgini doesn't pay so much, which is just NUTZZZ!

 

Per dollar value of the car, you probably do. However, that's because there's likely a lot less total dollar value of claims on the exotic than there is on the gajillion mercuries.

 

What IS insane is that should you get your license suspended for say not getting your car inspected and pissing off a judge and then not paying fines, and THEN discontinue your insurance because you have no car and won't be able to drive for a couple of years. When you get back on insurance, you will pay out the wazoo like you wouldn't believe. Failing to pay into the system carries a penalty greater than having a vehicular homicide on your record. It has it for less years but IMO that's just insane. watching one of my friends go through that after trying to get his act together was fairly Kafkaesque. To round it out, his employer's parking permit people kept on hassling his boss that he wasn't paying for a parking permit while he didn't have a car.

 

As for getting reemed when it seems like people who should be paying more aren't, check to see if you have the limitation of liability waiver or not. No limitation of liability = you pay almost double the rate of the same coverage options with the waiver.