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ins.co. increasing my rates

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RCALL

Junior Member
What is the name of your state? Delaware
I was rear ended 1 year ago. Have police report and have settled claim, other person's fault. My auto insurance has steadily increased. They have cancelled and re-instated the policy, twice, required me to prove that other adults living in the same house have their own vehicles and their own insurance, and I have now had to provide them proof that the accident was not my fault for the third time. This last increase was 1. due to the accident (not my fault) 2. due to my credit history(general credit, not payments to them), according to the secretary at the insurance company. Over the past 10 months my monthly rate has steadily increased to now $85 per month more than what I was paying. Is it legal for them to raise my rates due to an accident that wasn't my fault or due to my general credit rating?
 


S

stephenk

Senior Member
yes it is.

If you are not happy with their prices, look for another carrier.

Why was the policy cancelled on two occasions?
 
R

RCALL

Junior Member
Cancelled once due to "other drivers residing at the same address", even though they have their own insurance. Cancelled the other time stating I had not provided proof of their own insurance and the accident. They had actually lost the paperwork that my roomates had to personally go to my insurance company and sign forms and provide proof of their own insurance! Now how can they claim they "lost" the paperwork which had to be completed right in their office? I'm currently shopping around for other insurance but this accident keeps popping up. It's not on my driving record (I have a copy), so it's coming from someone. I'm guessing they contact my current company. MVA has told me to contact the insurance commissioner. If I do this, will they let my current company know that I'm the one filing the complaint? Can they drop me for this? Is there a limit as to how high and how often they can increase my rate? I thought there had to be a legitimate reason. I know they will increase periodically due to your basic kind of cost of living and everything goes up, but what's the limit?
 
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InsuranceLadyAZ

Member
RCALL said:
Cancelled once due to "other drivers residing at the same address", even though they have their own insurance. Cancelled the other time stating I had not provided proof of their own insurance and the accident. They had actually lost the paperwork that my roomates had to personally go to my insurance company and sign forms and provide proof of their own insurance! Now how can they claim they "lost" the paperwork which had to be completed right in their office? I'm currently shopping around for other insurance but this accident keeps popping up. It's not on my driving record (I have a copy), so it's coming from someone. I'm guessing they contact my current company. MVA has told me to contact the insurance commissioner. If I do this, will they let my current company know that I'm the one filing the complaint? Can they drop me for this? Is there a limit as to how high and how often they can increase my rate? I thought there had to be a legitimate reason. I know they will increase periodically due to your basic kind of cost of living and everything goes up, but what's the limit?
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It's a shame you have such a crappy carrier. Find another agent. Whatever you do, stay away from direct-writing companies (i.e. Progressive, Geico, etc). There are times when you will actually need your agent instead of some recent college grad in a call center.
 
R

RCALL

Junior Member
I've talked to a few. They all keep telling me that the accident "pops up". This is when I just walk in off the street and tell them I'm looking for a better company with competitive rates. Give them my driving record and that's it. They in turn give me a quote and say it's high because of the accident. I can't find where this is coming "up" at. It's not on MVA computer I've been there. I have a copy of my record. Do insurance companies talk to each other? Phone or computer? If so, isn't slander or something for my current ins. co. to state I have an at fault accident? Also, isn't there some sort of confidentiality policy or something?
 
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InsuranceLadyAZ

Member
RCALL said:
I've talked to a few. They all keep telling me that the accident "pops up". This is when I just walk in off the street and tell them I'm looking for a better company with competitive rates. Give them my driving record and that's it. They in turn give me a quote and say it's high because of the accident. I can't find where this is coming "up" at. It's not on MVA computer I've been there. I have a copy of my record. Do insurance companies talk to each other? Phone or computer? If so, isn't slander or something for my current ins. co. to state I have an at fault accident? Also, isn't there some sort of confidentiality policy or something?
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One accident should not increase your premium by that much. Some companies even forgive the first accident.

It is "popping up" because they are running your CLUE report, and your MVR is just a portion of that. Your CLUE report will follow you from state to state. It lists all accidents, violations, etc. you've had. As I said, based on what you've explained, there has to be more than 1 thing showing up on your CLUE report.

Also, your insurability is affected by your credit rating. Many people think this isn't fair, but it's the way it is. If you have bad credit, it will be difficult for you to get a really good carrier to write your policy. I don't know if that's your situation, but if you only have 1 accident and no one's willing to insure you, it may have to do with your credit and what's on your CLUE report.

Good luck to you.
 
R

RCALL

Junior Member
Just wanted to thank you and the report was free. Site was easy to work in. Got it all today!
 
A

ablessin

Member
My agent (state farm) told me there was a proven study that shows that people with poor credit are in more accidents.

That is why they are not only allowed to run your credit report, they can deny you coverage if you have poor scores. You're a high risk to them.

Now, I don't think is fair, because I have poor credit, but I am a pretty good driver. Just one accident -well 2 if you count the deer that I hit and it totalled my car. But that is it for the past like 7 years. I have a decent driving record and I pay over $100 a month for my insurance!!!
 
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InsuranceLadyAZ

Member
ablessin said:
My agent (state farm) told me there was a proven study that shows that people with poor credit are in more accidents.

That is why they are not only allowed to run your credit report, they can deny you coverage if you have poor scores. You're a high risk to them.

Now, I don't think is fair, because I have poor credit, but I am a pretty good driver. Just one accident -well 2 if you count the deer that I hit and it totalled my car. But that is it for the past like 7 years. I have a decent driving record and I pay over $100 a month for my insurance!!!
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I agree with you, bad credit isn't necessarily an indication of driving ability. I think insurers use whatever excuse they can to surcharge. They are businesses, in business to make money.

If their actuaries could prove long hair caused people to have accidents, those of us with long hair would pay more. It's ridiculous.
 
R

RCALL

Junior Member
Well, let me top it all. I do not have bad credit and I did obtain the report. Because I used my mother's address in the past five years, my accident (no fault of mine) shows AND the two claims she had against her insurance are on my CLUE report. Due to us having the same last name and the same address at some point over the past 5 yrs. And.... I pay $200 per month. Thanks for the help though. I have obtained a PO Box. That way another ins co says they would have to prove I have someone else at the same address as mine instead of me proving they have their own insurance. Supposedly I can get a better rate. We'll see!
 
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ablessin

Member
My ex husband and I lived with his mom and step father once while we were "in between" apartments (on a waiting list of 3 months).
Anyway- - we were wanting to change from Allstate to Progressive.
I went to progressive and paid the deposit, got our new cards, etc.

A few days later, they called me (at work) and asked me why my home phone number was listed under someone else ....

I was like WHAT?? WHO freaking cares??? Does it matter - - so I explained the apartment thing - that the stay there was temporary,etc.

The continued to give me grief over it, so guess what - I got a policy elsewhere and cancelled with them - - -

Why do they care who else lives in the house and whose phone it is???
All that should matter is WHO is driving the car, who is insured, etc.

These companies nit-pick over stupid details
 
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InsuranceLadyAZ

Member
ablessin said:
My ex husband and I lived with his mom and step father once while we were "in between" apartments (on a waiting list of 3 months).
Anyway- - we were wanting to change from Allstate to Progressive.
I went to progressive and paid the deposit, got our new cards, etc.

A few days later, they called me (at work) and asked me why my home phone number was listed under someone else ....

I was like WHAT?? WHO freaking cares??? Does it matter - - so I explained the apartment thing - that the stay there was temporary,etc.

The continued to give me grief over it, so guess what - I got a policy elsewhere and cancelled with them - - -

Why do they care who else lives in the house and whose phone it is???
All that should matter is WHO is driving the car, who is insured, etc.

These companies nit-pick over stupid details
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While I agree with you that insurers tend to be picky, you have to realize why. Insurance fraud is rampant. There are a lot of people who'd rather sit at home and fraudulently collect a check than get of their duffs and go to work every day.

Why do they care who else lives in the house? They care because if there are three drivers in one house and only one car, guess who's probably going to be driving that car - everyone in the house, particularly if they're related.

CLUE reports are notoriously inaccurate, but they do serve some purpose. For example, when I moved across the country from PA to AZ I knew nothing about the complex into which I moved other than it was in a nice neighborhood. When I pulled the CLUE report for my address, I found out that the apartment into which I'd just moved had been burglarized twice in the past year. If I'd known that up-front, I wouldn't have moved into this complex.

Just like it's important to pull your credit report once a year, you should also pull your CLUE report. Inaccuracies can cost you a lot of money in premiums.
 
A

ablessin

Member
well, thanks.

I am going to look into pulling my clue report today.

I see your point... but if you've explained the scenerio to them (temporary living while on a waiting list to move) - what gives them the right to harrass you about that? It happens all the time!

I know insurance fraud is on the rise. . . I work with insurance as my full time job - have for all of my working career. It's a costly mess - but on the other hand .. you do have to take a person's personal situation into account.

I did not appreciate being put through the ringer over my address. I could have easily proved to them that everyone one in the household not only had their own car, but insurance as well. That was not asked of me, and at the time I was only about 20 so I did not know now what I know then. All I knew then was a was a high school graduate, working full time, planning a wedding, and I didn't appreciate the doubt over my stinking address. Phew.
Ancient history at this point in time, but I will never forget it and I will never consider using that company for my insurance needs again.
 
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