[Kolyan2k]

I received my Allstate policy bill this month and noticed a $700 increase. Called them up and they said the increase is due to a claim that I made and its over $500 even though was NOT my fault. So basically they paid out $1000 bucks on a claim and increased my policy by $700 per year. I have never heard about insurance premiums going up on claims that were not at fault. Is this some sort of Allstate scam?

[Biginboca]

It seems to me they can choose to raise your rate. Then you can choose to get some quotes and insure elsewhere.

You can cancel the policy, right? How is it a scam? You believe there is a law saying they can't raise your rate?

[Red Bread]

What was your $1,000 claim? Was it someone hit your parked car? Did their insurance cover it, or yours?

I tend to pay cash for anything under $2k just to keep it entirely off of insurance as they'll almost always find a way to get their money back. I had two no fault accidents on my insurance when I moved to TX from CA and they dropped my coverage because they were about $60k, even though I wasn't at fault for either.

[Kolyan2k]

Originally Posted by Biginboca

It seems to me they can choose to raise your rate. Then you can choose to get some quotes and insure elsewhere.

You can cancel the policy, right? How is it a scam? You believe there is a law saying they can't raise your rate?

Not a single insurance company raised my rates before for past 20 years. This is the first time I came across a company rasing rates for no fault accidents. In fact it was always the other way around, if yo don't have tickets or accidents at your fault, rates go down

Basically what they are saying is that hey we paid out, so give us our money back + huge interest. So what's the fcking point of insurance then? Yes, I am obviously switching now, you would have to be an idiot to stay with a company who does business this way

[Kolyan2k]

Originally Posted by Red Bread

What was your $1,000 claim? Was it someone hit your parked car? Did their insurance cover it, or yours?

I tend to pay cash for anything under $2k just to keep it entirely off of insurance as they'll almost always find a way to get their money back. I had two no fault accidents on my insurance when I moved to TX from CA and they dropped my coverage because they were about $60k, even though I wasn't at fault for either.

Pothole, wheels and tires damage. Around $2k claim, insurance paid out $1k

[Red Bread]

Originally Posted by Kolyan2k

Pothole, wheels and tires damage. Around $2k claim, insurance paid out $1k

My understanding of these is that they're paid out of your coverage, but free from a deductible, yet still give them the opportunity to raise your rates.

[Scout10]

Maybe its going up because you said it hasn't been raised in . . .20 yrs !!!

There were two NATION WIDE(to everyone) auto insurance medical coverage increases
the past 3 years which helped fund OBAMAs health care programs.
Did you get bypassed ?

[Kolyan2k]

Originally Posted by Scout10

Maybe its going up because you said it hasn't been raised in . . .20 yrs !!!

There were two NATION WIDE(to everyone) auto insurance medical coverage increases
the past 3 years which helped fund OBAMAs health care programs.
Did you get bypassed ?

I said above, it was raised due to claim not Obama

[Pacific Ride]

How about a simple call to Allstate and ask why they raised your rate. This will clarify the reason. Years ago I carried State Farm Insurance for my home owners policy and my yearly rate went up some $500.00. I called them and they told me it was because of the 500-year floods in the mid-west that occurred the prior year.

I cancelled them immediately and went to a local carrier in my state - Pemco Insurance.

Also, check your state laws concerning an insurance carrier drastically raising rates on a no-fault claim. In addition, research the "Insurance Fair Conduct Act" that might award triple damages for ripping you off.

[Kolyan2k]

Originally Posted by Pacific Ride

How about a simple call to Allstate and ask why they raised your rate. This will clarify the reason. Years ago I carried State Farm Insurance for my home owners policy and my yearly rate went up some $500.00. I called them and they told me it was because of the 500-year floods in the mid-west that occurred the prior year.

I cancelled them immediately and went to a local carrier in my state - Pemco Insurance.

Also, check your state laws concerning an insurance carrier drastically raising rates on a no-fault claim. In addition, research the "Insurance Fair Conduct Act" that might award triple damages for ripping you off.

It's in the 1st post......as well as in post right above yours

[zx10guy]

My understanding of insurance coverages is if the car is moving the claim would be filed under collision. If the car was not moving it would be filed under comprehensive. I've never seen insurance rates go up for claims under comprehensive; unless you have a few of them. At that point, the insurance company is probably going to assess that you're living in an area at higher risk of having random crap happening to your parked car.

With claims under collision, that's where your rates can go up regardless of who was at fault. I asked my insurance, State Farm, about a similar situation. I drove through a crap job patch in the road which you couldn't tell there was a distinct lip between the shitty patch and the rest of the asphalt road unless you were standing right above it. I drove through it at about 35-40 MPH and I thought I was going to have a bent wheel. My agent said because the car was moving it would be a collision claim and basically said it's not worth filing (depending on the amount of damage) in relation to the ding it would have on my insurance record. Fortunately, no damage.

[aozer]

get a better provider. im with amica and they have been nothing short of amazing.

i totalled my car (technically my fault), was given the sticker price back with new car replacement (~45k), purchased a faster car and my rate only went up 120 a year.

[JohnnyCanuck]

There is a reason that claims for accidents that are not your fault impact your rates in most jurisdictions in North America (the exceptions are the four government run auto regimes in Canada).

Simply put, even though you're not at fault, your insurance can only subrogate the actual loss to the at-fault driver's insurance. They do not recover their adjusting/estimating/processing costs. Therefore, even though you weren't at fault and your insurer has likely recovered the claims payout, there are still costs recorded against your policy that are then factored into the underwriting algorithm used for rate setting.

As above, don't put through any modest cost claims to your insurance even if there's another liable party. That applies to all insurance, including your home.

[Scout10]

Originally Posted by Kolyan2k

I said above, it was raised due to claim not Obama

You also said it hadn't been raised in twenty 20 years !
it usually will also follow the age of vehicle. A new vehicle its RAISED (higher value),
and as the vehicle depreciates the rate go down. Unless passed write off value on the
vehicle you drive, thus a +20 yr old car.
Wifes vehicle increased $20 per year for medical (obama)
Yet decreased $13 per year for age of vehicle.
You somehow missed out on many years of saying "~&#@'n car insurance went up AGAIN!"

?? what type vehicle is this on ??

[Kolyan2k]

Originally Posted by JohnnyCanuck

There is a reason that claims for accidents that are not your fault impact your rates in most jurisdictions in North America (the exceptions are the four government run auto regimes in Canada).

Simply put, even though you're not at fault, your insurance can only subrogate the actual loss to the at-fault driver's insurance. They do not recover their adjusting/estimating/processing costs. Therefore, even though you weren't at fault and your insurer has likely recovered the claims payout, there are still costs recorded against your policy that are then factored into the underwriting algorithm used for rate setting.

As above, don't put through any modest cost claims to your insurance even if there's another liable party. That applies to all insurance, including your home.

Never noticed before.....this is 1st time. I thought thats how insurance companies work, you dont have any claims they make money, you have a claim (where no other insurance is involved) they loose money. Didnt think they want to recover their $1000 loss by increasing my insurance $700 per year. Thats not exactly a recovery, they will be making money on me next year. Not a great way to reward a good driver

Originally Posted by aozer

get a better provider. im with amica and they have been nothing short of amazing.

i totalled my car (technically my fault), was given the sticker price back with new car replacement (~45k), purchased a faster car and my rate only went up 120 a year.

Shopping right now....

Originally Posted by Scout10

You also said it hadn't been raised in twenty 20 years !
it usually will also follow the age of vehicle. A new vehicle its RAISED (higher value),
and as the vehicle depreciates the rate go down. Unless passed write off value on the
vehicle you drive, thus a +20 yr old car.
Wifes vehicle increased $20 per year for medical (obama)
Yet decreased $13 per year for age of vehicle.
You somehow missed out on many years of saying "~&#@'n car insurance went up AGAIN!"

?? what type vehicle is this on ??

I dont follow, but it doesnt matter. I've had many different cars through out many years, anything from old nissan maxima to bmw m3. Ive also had many claims before. My rates flexed maybe +/- $200-300 per year. I've been driving M235i for past few years with same rates. For 2 cars I am paying $2080. About 900 for Lexus and $1200 for BMW. Now they want $1900 for BMW and same $900 or less for Lexus

[JohnnyCanuck]

Originally Posted by Scout10

You also said it hadn't been raised in twenty 20 years !
it usually will also follow the age of vehicle. A new vehicle its RAISED (higher value),
and as the vehicle depreciates the rate go down. Unless passed write off value on the
vehicle you drive, thus a +20 yr old car.
Wifes vehicle increased $20 per year for medical (obama)
Yet decreased $13 per year for age of vehicle.
You somehow missed out on many years of saying "~&#@'n car insurance went up AGAIN!"

?? what type vehicle is this on ??

More complicated than that. The collision and comp on the same vehicle will drop over time (or increase more slowly) because the cost of repairs drop as more replacement parts become available (ie. non-OEM or salvage). But that has no impact on liability or accident benefits or hit/run or underinsured coverage.

[Ric in RVA]

Originally Posted by JohnnyCanuck

More complicated than that. The collision and comp on the same vehicle will drop over time (or increase more slowly) because the cost of repairs drop as more replacement parts become available (ie. non-OEM or salvage). But that has no impact on liability or accident benefits or hit/run or underinsured coverage.

Insurance companies price for the typical claim for most of the premium and for the max claim on a small part. This is why the rate doesn't drop as the car ages.

So the typical claim is left front fender, head light and hood. $3500 on a new car.

Guess what? same thing costs $3500 on a 10 year old car.



The newest cars are becoming a huge issue. The cost of the electronics stashed in the bumper and grill are astronomical and don't always prevent a claim. This is raising rates right now.

[JohnnyCanuck]

Originally Posted by Ric in RVA

Insurance companies price for the typical claim for most of the premium and for the max claim on a small part. This is why the rate doesn't drop as the car ages.

So the typical claim is left front fender, head light and hood. $3500 on a new car.

Guess what? same thing costs $3500 on a 10 year old car.



The newest cars are becoming a huge issue. The cost of the electronics stashed in the bumper and grill are astronomical and don't always prevent a claim. This is raising rates right now.

Not quite the case. Shop times don't change with the age of a car, but parts prices to drop (and often substantially) with an older car. That's why I said increase more slowly. If you price insurance with all the same variables (insurer, location, claims history, driver experience, driver demographics) and use a 2005 328i and a 2015 328i, you will get a lower quote on the older vehicle (although better anti-theft tech and horsepower differences muddy the waters a bit).

[TSM330i]

Go to another insurance company for a quote.

My wife and I have had Erie Insurance in PA for 20 years (me since I've been driving). I've NEVER had them raise any of my rates due to a claim.

As a matter of fact, when I met my wife, she had All State. Her parents did as well. I was a 25 year old kid with a newer car than her parents and I was paying LESS than they were. I told them to switch 20 years ago and they stuck with them and paid $1000 more per year, so $20K out the window.

They finally switched earlier this year and their premium went down $1200 since they added home owners as well.

To have your rate raised $700 for a $1000 claims is total BS. Go somewhere else.

[Kolyan2k]

Erie not available in Mass, I have my agent shop around for me, and will probably get a quote from Amica myself.

It's crazy....few years ago my long time insurance/agent said we are increasing rates for whatever reason (huge, like $1000 bucks on 1 car) so I went to this Allstate and now they are being a PITA. And when I needed business insurance, my long time agent couldn't even open a policy for me, I went to Allstate office and they've done it next day (not Allstate policy). But I am guessing since it's an official Allstate agent, then can't sell any other auto policies....

[Kolyan2k]

Amica comes out about $400 more then my last years policy, but thats if I do home policy with them as well. Will see what my agent comes up with.

[zx10guy]

This whole discussion about comparing insurance rates is useless unless people also divulge their coverage limits and deductibles. I can say my $500 collision and $250 comprehensive deductible with $250/500k liability limit coverage is going to be very different than someone doing the a $1000 deductible with the state minimums for liability coverage.