Raises In Car Insurance Rate

[ravenwoodglass]

I recently had a renewel notice from my insurance company that raised my rates substantially for no reason. I live in NY and we already have some of the highest rates in the nation thanks to NYC. I decided to call and see if I raised my deductable if that would help lower the cost. Boy did I get a shock! They decided to see if rewritting my policy would help, I have been with this company for almost 10 years. The agent was stunned and I almost fainted. I have kept the same coverage and deductables and my policy went from $503 for 6 months to $270. I was so stunned I even called back today to see if there was some mistake and there wasn't. So long story short don't just think you have to live with the rate increases call and see if they can lower them. It never hurts to try.

[debmidge]

I recently had a renewel notice from my insurance company that raised my rates substantially for no reason. I live in NY and we already have some of the highest rates in the nation thanks to NYC. I decided to call and see if I raised my deductable if that would help lower the cost. Boy did I get a shock! They decided to see if rewritting my policy would help, I have been with this company for almost 10 years. The agent was stunned and I almost fainted. I have kept the same coverage and deductables and my policy went from $503 for 6 months to $270. I was so stunned I even called back today to see if there was some mistake and there wasn't. So long story short don't just think you have to live with the rate increases call and see if they can lower them. It never hurts to try.

Ravenwood: Make sure that you did not give up your right to sue for soft tissue injury - giving that right up will lower the premium, although I am not sure if you can reject that right in NY State as you can in NJ... and make sure that you have the Spousal supplemental coverage on the policy (a NY State Auto Insurance thing).

Next question, what is the AM Best Rating of your old company compared to your new company? Is the new coverage with a "B" rated insurance company?

I am in NJ and you know the story of our auto insurance premiums

[Jestgar]

dang. I guess it's worth checking into things every now and again.

[ravenwoodglass]

Ravenwood: Make sure that you did not give up your right to sue for soft tissue injury - giving that right up will lower the premium, although I am not sure if you can reject that right in NY State as you can in NJ... and make sure that you have the Spousal supplemental coverage on the policy (a NY State Auto Insurance thing).

Next question, what is the AM Best Rating of your old company compared to your new company? Is the new coverage with a "B" rated insurance company?

I am in NJ and you know the story of our auto insurance premiums

It is actually the same company and the second rep pulled up both policies and compared them side by side. I think the difference in the rates were because they reran a credit check and my credit rating has improved substantially. They don't run them routinely at each renewal so my old rate may have had a lot to do with my less than perfect credit rating when I first switched to the company.

[debmidge]

It is actually the same company and the second rep pulled up both policies and compared them side by side. I think the difference in the rates were because they reran a credit check and my credit rating has improved substantially. They don't run them routinely at each renewal so my old rate may have had a lot to do with my less than perfect credit rating when I first switched to the company.

That makes sense then. Although I do not see what a credit rating or finishing college has to

do with being a better driver (less risk). I think people with bad credit should get the benefit of the doubt and always have the same low rate as someone with good credit. I have been in insurance industry for almost 30 years and have seen very bad drivers with very low insurance rates....additionally they do not run credit checks nor ask about college degrees when your auto is rated for business use. So it's an unfair to assume someone without a college degree or a bad credit score is a driving risk . I have a hard time with this and my personal insurance is with an insurance company who does not use these two items as underwriting criteria. I know that the companies who advertise on TV heavily use these underwriting criteria and oftentimes you are better off with a local insurance company or a small mutual insurance company.