Two Questions

[Indagate]

North Carolina

1. I was recently (last 15 days) quoted a rate of $536 for my niece's car insurance. This is like 200 less than everyone else. Basically, the agent stated that since I have my house and all cars with them, that she would receive the additional discounted rate. Thus, being 200 or so less than everyone else. Three days ago, the bill came in and it is only a couple of dollars less than everyone else (736 every six months). I inquired about the charge and was told it is a rate increase for the new year. Is this a load of bull or can I demand an itemized reason for this?

2. My mother is very ill with cancer and has maybe 2 months to live. She was involved in an accident where she was a passenger and hit in a car like 9 months to a year ago. The "package" is being reviewed by the other insurance that my sister's attorney sent to the insurance company. If my mother passes away before the settlement, does the insurance company drop the package too?

 

[tammy8]

Rate changes were effective Jan 27, 2003. If the policy was effective after that rate, then the new rate will apply.

Liability prices are regulated by the state therefore they are basically the same with each company.

 

[Indagate]

Do you know what the rate increase was? It looks like it is around a 33% increase. That does not seem feasible.

 

[tammy8]

It was different from territory to territory. It sounds like your neice is an inexperienced driver, right? Those kids were hit the worst but that is for the simple fact that inexperienced drivers cause more accidents with much bigger payouts espcecially bodily injury payouts.

You might want to look up the NC Dept of Insurance site and look around. Even if you don't find the exact answer you are looking for, some very interesting stuff.

 

[JETX]

1) Rate increase:
In addition to any rate hike difference from the time that you got your quote to the time you actually applied, there is likely another thing that affected the rate.
When you first contacted them for a quote, they gave you the 'standard' rate. This is because they have not run the drivers history. When you actually APPLY for insurance, they then run the history and have the right to adjust the quote to compensate for that drivers accident and tickets.

2) Insurance claim:
If the claimant deceases before settlement of the lawsuit, the decedants estate then acts on his/her behalf...... and payment (if any) is made to her estate.

It is likely that the rate difference is a combination of both the above. Really very simple.... and they probably would have explained that if you had contacted them.

 

[Indagate]

Great information! Thanks for the prompt replies. I tried to contact the agent yesterday, but just missed him. I will try again today.