var json_comments = new Array("
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valleyval
June 29, 2009 6:02 PM
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My auto insurance recommended I get AAA to save money. I spend $72/year on AAA for my husband and myself and save about $250/year on the car insurance. And AAA is also saving me money on my eyeglasses so it's a win all around.

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Bobby Smith
June 29, 2009 6:07 PM
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@valleyval:
I have AAA, but I don't believe I'm getting a discount on my car insurance because of it? What insurance company do you have? I have State Farm. Should I call them and ask for a discount because I have AAA?

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justagigilo85
June 29, 2009 7:52 PM
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@Bobby Smith: My auto insurance is also through AAA. It's actually Travelers insurance and it saves me A LOT.

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valleyval
June 29, 2009 6:20 PM
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@Bobby Smith: I have Progressive. Some carriers do it, some don't. It never hurts to ask!

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jswilson64
June 29, 2009 6:08 PM
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And why should my credit score have any bearing on my car or homeowner's insurance? I've had exactly 1 property insurance claim, ever, and it was in 1988 from a wreck that the police report indicated 100% fault on the other guy. But, my credit has a couple of dings, so I get to pay a higher rate. Thanks, Insurance Industry.

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Powerlurker
June 29, 2009 8:01 PM
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@jswilson64:

Because people with their finances in better order (i.e. people with good credit) are more likely to pay for small at-fault damages out of pocket rather than take the hit to their insurance that filing a claim would involve. The insurer isn't measuring how good a driver you are or how likely you are to have an accident. They're measuring how likely you are to generate a claim that they'll have to pay for.

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econobiker
June 29, 2009 10:28 PM
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@Powerlurker: Actually Progressive (motorcycle insurance) wanted you to HAVE open credit lines and loans since their underwriters basically told me that people who have their fiances in order would be more apt to claim on insurance than people who have loans out.

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jessedybka
June 29, 2009 10:56 PM
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@econobiker: Good Freudian slip: Motorcyclists need their fiances in order. Usually their mothers too. Mine has asked me to wait until she dies before I buy a bike.

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econobiker
June 30, 2009 1:18 PM
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@jessedybka: Sorry about the spelling. You just have to have the motorcycle before you get married and have one (or two or three) that are each not worth more than a set of premium level new car tires so the bike won't get sold when the baby/2nd baby/house/boat/etc comes...


My 5'11\" tall ex-wife had her own motorcycle license and my 2nd spouse loves to ride as a passenger. At one time I had 4 motorcycles insured with the ex and I for about $250/yr. That stopped when we got divorced as I had to get the policy re-written giving the insurance company a reason to raise the rate

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Prole
June 29, 2009 6:46 PM
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@jswilson64: I couldn't agree more. Every facet of our lives seems to revolve around credit ratings. Its a system with many flaws so I resent it. Makes me want to live off the grid some days.

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TouchMyMonkey
June 29, 2009 7:40 PM
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@Prole: You mean those green slips of paper with dead Presidents on them? I'm with you.

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Prole
June 30, 2009 3:56 PM
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@HurtsSoGood: Not sure what your point is here. Mine is that FICO scores are entrenched in our lives in sometimes surprising and unwelcome ways. However, it seems that the only way to defy the system is to live in a remote area with no telephone or internet and similar services. Even then, it wouldn't remove credit scores from your life, but maybe you wouldn't have to think about it for a long time. It's an extreme measure so do you suppose I could be excercising some hyperbole here?

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tbax929
June 29, 2009 6:17 PM
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@jswilson64:
This discussion has been had many times on Consumerist. The actuaries' data suggest that people with lower credit scores tend to have more claims. Also, someone who isn't careful financially may be more tempted to commit insurance fraud.


I'm not saying I agree with this, but that's just the way it is.

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Framling
July 2, 2009 12:19 AM
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@tbax929: And what does the actuaries' data suggest about people who make donations to the DNC, or ACLU members, or subscribers to 2600, or gay people, or people who are into BDSM, or anything else that's not really any of the insurance company's business?


Just because they can identify a correlation doesn't mean it's reasonable for them to factor in whatever they can get their hands on.

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spankyshay
June 29, 2009 6:15 PM
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@jswilson64: Good, bad or indifferent: insurers look at risk. There is a corollary between credit risk and general risk. Very similar to the practice used by employers to determine who they want to employ.

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Galactica
June 29, 2009 6:31 PM
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@spankyshay: There is? Cool, please let me know of those corollaries.

*waiting...waiting*

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Karita
June 29, 2009 8:56 PM
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@Galactica: I believe the formulas used by underwriters are proprietary, and I doubt you'll get the actual statistics used by the insurance companies.

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spankyshay
June 29, 2009 6:47 PM
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@Galactica: Looks like NeverLetMeDown did my work for me.

Waiting... waiting for a emotional response that is simply wrong or OT.

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jswilson64
June 30, 2009 2:32 AM
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@Powerlurker: If I were a first-time applicant, I might understand. But my wife and I have over 25 years insured history in the CLUE databases. One claim between the two of us. Premiums paid on time for our policies, never been dropped, etc. etc.

But because we took on too much student loan debt (which we ARE repaying) none of that matters to the insurance companies.

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NeverLetMeDown
June 30, 2009 10:21 AM
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@jswilson64:

Sure it matters - if your driving record were poor, you'd pay even more.

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pr0kz
June 30, 2009 4:40 AM
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@jswilson64: Actually, being an insurance agent for a larger insurance company, I can tell you that they DO care. Credit is only one part of the formula for deciding your rate, and if everything else is rock solid, credit usually becomes a non factor. (At least for us anyway.)

If you are getting terrible insurance rates, and the company is simply blaming it on credit score, you are not being told the whole truth.

It does come back to statistics though, being that people with debt are larger risks. (My credit sucks, so I feel your pain.)

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NeverLetMeDown
June 29, 2009 6:36 PM
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@Galactica:


Well, frankly, the industry says there is, and why would they lie? If they're using a metric that doesn't help assess risk, they're only hurting themselves because they're mispricing insurance.

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ssaoi
June 29, 2009 6:15 PM
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@jswilson64:


Why should I pay more as a single person?


Why should I pay more as a male?


Why should I pay more as a urban dweller?


Why should I pay more since i use it everyday?


It sucks but it's the percentages

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TCama
June 29, 2009 6:18 PM
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On a completely unrelated note, the thing on the site that counts how many views a post has gotten isn't working. All of the posts say \"0 views.\"

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squinko
June 29, 2009 6:34 PM
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@TCama: You should e-mail the editors instead of post a comment. They'll get it faster.

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tbax929
June 29, 2009 6:18 PM
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Another way to lower your premium is to report to your agent (or direct-writing company) if your commute is shorter than it used to be or you're car-pooling or you have lost a job and therefore don't commute at all. The rates are different for cars that are driven every day to work than they are for cars just used for \"pleasure\".

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Radi0logy
June 29, 2009 6:37 PM
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@tbax929: I assume you put quotes around pleasure to let us know that the cars are used in those sleazy Internet pornography videos?

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econobiker
June 29, 2009 10:38 PM
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@Radi0logy: Don't rent multi-passenger vans and if you do only sit in the middle seats not the very back seat...

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unpolloloco
June 29, 2009 11:25 PM
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@econobiker: What does this have to do with anything???

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econobiker
June 30, 2009 1:23 PM
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@unpolloloco: radi0olgy mentioned it and I took it and ran...


(Feferences a series of adult videos called bang bus - not safe for work or meaningfull relationships with spouses. In essence the x vid guys don't even have the overhead of hotel rooms anymore- just the van they pick everyone up in.)

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realserendipity
June 29, 2009 9:02 PM
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@Radi0logy:
The commenter possibly posted it that way because its the actual insurance companies use to indicate a vehicle not used to commute to work.

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TouchMyMonkey
June 29, 2009 6:19 PM
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Why would your credit score indicate anything about your driving habits? You know, it should be illegal to pull credit scores for anything other than actually extending credit. That includes employment.

This is very quickly becoming a means of establishing totalitarian control over people, and we all should be quite alarmed about it.

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madanthony
June 29, 2009 7:04 PM
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@HurtsSoGood:

As someone with a high credit score, I for one welcome our new totalitarian credit-score checking overlords.

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NeverLetMeDown
June 29, 2009 6:40 PM
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@HurtsSoGood:


Well, the fact is, there _is_ a correlation between insurance losses and credit scores (see the study I referenced above).

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Elcheecho
June 29, 2009 6:36 PM
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@HurtsSoGood: sorry, you don't own your credit score/report. You don't solely own the history of you transactions that it's based on either. That said, you are definitely entitled to have errors corrected.

Not allowing insurance companies to check credit reports will probably increase your insurance rates since won't be able to discriminate as well.

There's nothing wrong with using credit report/score for anything it legitimately correlates to so long as (1) it's not the only criteria and
(2) the rules for improving your credit report/score are clear.

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TouchMyMonkey
June 29, 2009 7:44 PM
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@Elcheecho: You mean people of various colors are better/worse drivers and should pay more? Well, everybody knows Asians can't drive but has anyone actually proven this to be true?

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bonzombiekitty
June 30, 2009 11:25 AM
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@HurtsSoGood: It comes down to statistics, and trust me, insurance companies have mountains of statistics to look at. They can look at all your various attributes and assign a risk to you based on them depending on what the correlation is. If there's a significant correlation between credit score and the amount of claims submitted to an insurance company, then you bet they're going to take that into account.

I pay more because I'm male. The fact that I'm male says nothing about my personal driving ability, however it's not possible for the insurance company to get a 100% clear view of my personal driving ability. So they look at statistics. All other things being equal statistically, males are more likely to get into an accident than women. So all other things being equal I'm going to pay more, even if it's just slightly more, than a woman.

There's probably some things they legally cannot take into account, like race, but if they could, they would.

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Powerlurker
June 29, 2009 8:04 PM
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@HurtsSoGood:

They don't care about your driving habits. They only care that they don't have to pay out claims. People who are in good financial shape will be more likely to pay for small accidents out of pocket rather than file claims for them and take the subsequent hit to their insurance rates.

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pr0kz
June 30, 2009 4:43 AM
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@Powerlurker: This is complete nonsense. People in good financial standing tend to file less claims, because they HAVE LESS claims. The statistics are there for that.

Being an insurance agent, I can tell you from personal experience, this is the truth.

Honestly, with the company I work for, you can reject to have credit run anyway. Why would a company give you the option to reject it if it were some magic way to avoid paying claims?

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Cant_stop_the_rock
June 29, 2009 6:25 PM
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@HurtsSoGood:

Your credit score doesn't tell them anything about your driving habits. Neither does your sex, your age, what kind of car you drive, or your grades in school. None of them tell an insurer anything about your driving habits. But thanks to the magic of statistics, they can combine all of those things to estimate how much you're going to cost them. Apparently there is a statistically significant correlation between credit score and your risk to an insurer.

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Ihaveasmartpuppy
June 29, 2009 6:19 PM
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I'd love to know when it makes sense to drop comprehensive/physical damage/collision on a not new paid off car.

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4 replies
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Chmeeee
June 29, 2009 6:34 PM
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@Ihaveasmartpuppy: I would say when you get to the point where the value of the car is equal to about 2 to 3 years of insurance premiums.

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sponica
June 30, 2009 3:11 AM
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@Chmeeee: I'd also add in if you can afford to get a new old jalopy when your old old jalopy dies. My sister's fiance only carries liability....so when the big old tree branch came a crashing down....He was SOL.

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unpolloloco
June 29, 2009 11:31 PM
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@dfwguy: Statistics - people with bad credit are more likely to be in an accident. Also, less likely to pay their premiums.

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spankyshay
June 29, 2009 6:28 PM
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@Ihaveasmartpuppy:
When (premium $ + deductible $) * time > Car's value.

The \"Time\" part of the equation is the only variable each individual needs to consider. Insurance = Risk... so how much risk, as an individual, are you willing to take?

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cmdrsass
June 29, 2009 6:23 PM
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You could also move to a state that does not require its citizens to purchase auto insurance.

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jswilson64
June 30, 2009 2:35 AM
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@cmdrsass: I live in such a state now. All Texas requires is \"proof of financial responsibility.\" There's some gigantic financial hoop that you can jump through to say, basically, \"I'm so rich, I don't have to have insurance,\" and you don't have to get car insurance.

But nobody that wealthy would even THINK about going without an umbrella policy, so they don't lose everything in a lawsuit over a fender-bender that results in \"whiplash\".

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sponica
June 30, 2009 3:13 AM
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@Coles_Law: I believe NH does not require auto insurance...along with those belty thingies you wear to keep your torso in the car. And those buckety helmet things on your head to keep your brains from splattering when you fall off your motorcycle.

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econobiker
June 29, 2009 10:40 PM
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@Coles_Law: Most states require auto insurance but some do not require proof of insurance for registration.


You can also become an illegal immigrant since they often don't carry auto insurance and just give fake names when involved in an accident...

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cuchanu
June 29, 2009 6:27 PM
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Tip #6: Don't get insurance with Allstate. Unless you like paying a lot of money and when the time comes to make a claim you like to get lied to and screwed.

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narf
June 29, 2009 7:03 PM
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@cuchanu: My issue was a couple years ago when I was rear ended. Allstate just wanted to total my car instead of repairing it. They didn't want to even consider that I had zero qualms whatsoever going with good used parts instead of $$$ for new, just to keep [u]their[/u] costs down.

The other party, State Farm, did listen, and the repair bill was over $600 lower. Indeed, the only part that was brand new was the bumper cover, which I did insist that it had to be OEM (CR did a test a while back, and the aftermarkets failed horribly). That was $20 more than the knockoff, and $30 cheaper than a repaired one.

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full.tang.halo
June 29, 2009 6:29 PM
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With regards to the credit score, watch out for Progressive, Esurance, Geico, and any other online insurance quotes. The quotes they issue in via their step by step process are for some people with 900+, I know you cant have a 900 credit score, but still, Mine was in the mid-upper 700's and when it came back from underwriting the cost was more because of my \"credit score\" I was 22, they knew I was 22 from the information provided, how can they think I'd have an 800+ score. I called and asked about it and their bs is they cant know what a persons credit score is when they are quoting so they use a really high one and up the premium if the persons score is lower, not true bait and switch but annoying all to hell.

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pr0kz
June 30, 2009 4:47 AM
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@full.tang.halo:

I am an agent for Geico currently, and I can tell you right now that is wrong. If an agent told you that your score was higher because of credit, they either lied, or misinformed you.

First off, credit is typically ran earlier then when it gets to underwriting. Not to mention, if you're even in a decent standing in credit, it wouldn't affect the rate that much.

It's much more likely that either something came back on reports for tickets or occurrences, or simply the issued date of your license was updated and you were given a more accurate quote.

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Coles_Law
June 29, 2009 9:32 PM
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@full.tang.halo: That's odd-when did you get a quote? I had about a 640 when I applied w/ Geico, and my online quote matched my premiums exactly.

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Karita
June 29, 2009 9:02 PM
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@full.tang.halo: Geico must not always do that. My credit score is TERRIBLE, but they were the lowest quote by about $70 a month, for slightly better coverage than I got anywhere else. (Same limits, but including a loan payoff if the car is totaled.) But I do have a graduate education, I'm in my 30s and have never had a claim or speeding ticket, and I live in an area where I can park off street. Different companies put more weight on different parts of your profile, so it really does pay to shop around.

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Eyebrows McGee (now with more baby!)
June 29, 2009 6:32 PM
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If you don't drive very much, some insurers offer a discount for cars driven under particular threshholds. For a couple years I was hardly ever driving except to the supermarket, and for driving less than 8,000 miles a year, I got a substantial discount. My insurer had another threshhold at 12,000, IIRC. (The rationale, of course, is that the less you drive, the less likely you are to be in an accident.) My agent just had to look at my odometer once a year to extend me the lower rate for the next year.

Doesn't hurt to ask.

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theblackdog
June 30, 2009 8:40 PM
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@Eyebrows McGee (now with more baby!): They probably also classified your car as \"pleasure\" driving rather than \"commuter\" driving to make the discount more substantial. I cut my insurance by nearly half when I was 20 because my insurance company asked me one time during a renewal if I was driving my car to classes at college. I explained that I wasn't because I used my bike, they changed the classification of my car usage.

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jp
June 29, 2009 6:39 PM
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#5 Keep your credit score high. Ya know, everyone talks about getting a free copy of your credit report. Thats all you get. The credit report. If you want your credit SCORE they charge you. So yes, copy of credit report shows everything is fine, but get out your credit card if you want that all famous score everything is based upon. Hence, the most important part is not free.

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Elcheecho
June 29, 2009 6:58 PM
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@jp: I don't think that's the point. Getting a free credit report is about correcting errors. If the score is low because of an error, you could have figured that out with just the report. If there's nothing to correct, you pretty much only need the credit report. If you need the score because you're getting a loan, suck it up.

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jp
June 29, 2009 7:19 PM
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@Elcheecho:


You missed my point. #5 of this article said to \"keep your credit score high\". You have to buy the credit score to find out what it is in oder to \"keep it high\". I ordered a copy of my credit report and every thing looks good but I have no idea what the score is. 710? 720? 780? How are we supposed to \"keep credit score high\" if we don't know what it is unless we pay for it. Furthermore, how high is high? 720 can be 'high' for a loan but low for auto insurance discounts. So just because my credit report \"looks good' and has no errors doesn't mean I have a high enough score for a auto dsocount. I have to purchase that score to find out. Everyone say get a free copy of your credit reprt. What they don't say is, the score will cost you. That is my point.

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Anonymous
June 29, 2009 6:44 PM
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I have AAA for my home and auto insurance. I got quotes from 3 other insurance companies, and AAA cost at least half of all 3 for the home and auto insurance. You have to get a AAA membership which adds $50 (I think) a year, but you get all the benefits of a AAA membership, travel discounts, roadside assistance, etc. I swear I don't work for them, I was just really surprised when we got home insurance from them this February, that is was half as much for the exact same amount of coverage. Anyway, they are awesome.

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Etoiles
June 29, 2009 6:52 PM
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Car insurance has proven, for me, to be one of those areas where it really has paid to talk to a real person on the phone.

I was shopping around for quotes on a new-to-me (a 1996 Camry that had been registered to my father in between my grandfather's willing it to me and my taking it, because I lived in NYC when he died and no way was I having a car there) car just this past February. I received WILDLY different quotes from about 8 different companies, and picked the lowest, Geico. They quoted me one price throughout the whole process, and as soon as I had entered my credit card information, the price I was quoted became 40% higher.

I screamed and yelled at my fiancé for a few minutes but then calmed down and called Geico and spoke (politely) with a human on the phone. She had it all sorted out in under three minutes and I pay the original, absurdly low rate.

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Jakuub
June 29, 2009 6:58 PM
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I disagree with some of this - I own a car that's made the top ten of 5 or 6 years worth of most stolen car lists, and my insurance isn't overly expensive, even with full theft/glass and high limits.

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Karita
June 29, 2009 9:05 PM
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@Jakuub: Yes, but you are probably a good risk for them. If you had claims, or bad credit, or you were young, etc, you'd probably pay more. And if you had a less desirable-to-thieves, you'd probably pay even less. Rates are never based on just one aspect.

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Karita
June 29, 2009 9:05 PM
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@Karita: less desirable-to-thieves vehicle, that is

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valleyval
June 29, 2009 8:56 PM
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@Jakuub: I am going to venture a guess that you don't live in a metro area.

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joshua70448
June 29, 2009 7:06 PM
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I think it's kind of odd that they left out defensive driving courses. Most insurance companies have a discount for up to three years per course certificate, and while the course itself costs $25 online in my state (TX), I'm getting almost $35 in discounts per policy term on two cars; that adds up to $210 in savings for a $25 class over three years (even with one car, it's $120, which is still WAY more than $25).

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Josh_G
June 29, 2009 7:07 PM
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Geico actually was the cheapest insurance for me and my wife. We were with Allstate, but the last bill for $1100 for 6 months made me shop around. Geico was by far the cheapest of the big insurance companies. Ended up saving close to $600, so I was super happy about that.

I've got a '98 Outback and got them to give me a discount because I didn't want comprehensive insurance on it. I mean on top of the lower rate you normally would get. I just mentioned that assuming I wrecked my car wouldn't I be saving them money by not asking them to reimburse me for it and the lady knocked off $30.

Then I told them my wife was a school teacher and they knocked off $30 more.

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jryan
June 29, 2009 7:43 PM
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Hey, folks, don't worry in a year or so 300 will be a GOOD credit score... (Thank you Mortgage Industry)

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tekkierich
June 29, 2009 9:36 PM
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@jryan

?

What did the mortgage industry do to you to make it so you can't pay your bills? I attempt to understand the obligations I get into before I do. I will be able to pay my bills regardless of what the rest of you do.

Now moving on the other hand... Probably not. I can't sell my house for what I owe. This does not mean I will stop paying my mortgage however.

It is called manning up.

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jswilson64
June 30, 2009 2:37 AM
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@tekkierich: Well, scoreboard you! Seriously, I hope you never have to decide whether to pay the electric bill, or mortgage, or whatever, or put some food on the table for your kids.

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Powerlurker
June 29, 2009 8:07 PM
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If you live in an apartment, definitely try to get your renter's insurance and auto insurance through the same company. My multiple policy discount on my auto insurance is greater than the premiums for the renter's policy that gets me said discount. A $100/yr renter's policy saves me about $170 on my auto policy.

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Snarkysnake
June 29, 2009 8:17 PM
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Be very careful of Geico and other big insurance providers that advertise discounts aggressively. They will be happy to sign you up,but when you have an accident ,you're toast.You could find yourself being dropped while dealing with other side issues related to your accident (injuries ,death , loss of transportation). These companies business model is based on risk management ,not poilcyholder service. No insurance company wants to pay a claim - Thats just common sense. But these kinds of companies will go to just about any length to avoid having you around for a second claim.

One more note- If you have kid that are 11-15 years old ,their driving days will be here sooner than you think. It is much easier at that age to get an umbrella liability policy that will give you a lot of peace of mind for their driving years. If they hit someone and the bills are really high (or ,God forbid ,they are drunk) that extra liability coverage can sure come in handy. You will generally have to carry higher liability coverage than you are used to , but peace of mind is never free. Get it now and the premiums will be about the cost of a really good dinner. Insurance carriers are skittish about issuing them once your kid starts driving.

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bonzombiekitty
June 30, 2009 11:38 AM
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@Snarkysnake: I have Travelers, they gave me the lowest quote by about $100. Which is really nice since I have to pay a lot for insurance due to where I live, how far I have to drive for work, and the fact I have a new car so collision is a lot. Unfortunately, within the first 6 months of having them, I had two accidents. One was entirely not my fault -- I got hit while parked by a drunk driver, damage wasn't too bad and Allstate ended up paying for everything so even though I filed a claim with traveler, they weren't out anything.

The second one, I accidentally tapped the bumper of a person in front of me at a stop sign. There was no visible damage to either car (not even a scratch). Even though there was no visible damage, the other driver filed a claim against me. I guess there actually was no damage since Traveler's never asked me for any money.

Anyways, after all that, my rates only went up $30.

Traveler's was really easy to deal with and had great service.

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dfwguy
June 29, 2009 8:26 PM
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When I was young they said my high rate was due to my age. When I got older it was because I bought nice cars. Now they factor credit in. With a good record, good credit, no claims, no tickets, both cars and house with the same company (that took some doing for a gay couple in TX), I still get screwed.
When someone can tell me WHY there is a relationship between claims and credit score, then I will believe.

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j-o-h-n
June 29, 2009 8:56 PM
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6. Live in a \"flyover\" state - far, far cheaper here.

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econobiker
June 29, 2009 10:53 PM
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@j-o-h-n: I forgot to mention that even if you don't live in a \"fly-over\" state, often you can borrow the car from a relative who lives in one of those states and compensate them for the vehicle's insurance and registration, etc. It applies if you have vacation property in such a place also...


(wink, wink; nudge, nudge...)


When I lived in Alabama, my sister and father borrowed a car and two motorcycles which I had bought in the Northeast and was planning to bring back down South- eventually. The sister drove the car around Delaware and Pennsylvania during a period of time while she was in college. My father fixed up the motorcycles and rode them around New Jersey for about 5 years...

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econobiker
June 29, 2009 10:45 PM
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@j-o-h-n: @jstonemo:


Definitely recommend that. Back in the '90s,when I lived in Alabama, minimum insurance on a pos '85 Dodge Omni was about $200/yr. When I moved back to NJ minimum insurance was about $550 a year AFTER the insurance company that I had in Alabama dropped me as they said \"we do not service that market, please secure different insurance\". I asked \"How?\" and the csr literally said \"Check the yellow pages for insurance agents.\"


Then when the ex-wife and I moved to TN from NJ, we got a refund from our car insurance company...

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Ragman
June 30, 2009 12:35 AM
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@econobiker: I got a refund on insurance when I moved to Texas from Mississippi and had to increase my liability limits.

Did even better when I dumped Allstate for Progressive and got double the liability coverage for about 60% of the cost.

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jstonemo
June 29, 2009 10:02 PM
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@j-o-h-n: Boy, you're not kidding. The above post stating that Geico offered them a lower quote by $70 a month about floored me. I only pay $50 a month for me and my wife. Full coverage on newer cars with low deductibles, and no, we're not in our 60s. What a difference living in Missouri makes, I guess.

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llsee
June 29, 2009 10:23 PM
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True story... I've been a Progressive customer for 3+ years. I renew my insurance at 6 month intervals. This month, when I received a six month renewal notice, my premium had increased by $59 for the 6 month period ($49 if I paid all 6 months at once). There was a notice that said my premium change had been based on my Experian credit report. I pulled my Experian report, and there was nothing negative in it. So, I called the 800 number for Progressive's credit department.

The very pleasant lady I talked to explained that according to my report I had financed a new car in February of 2008. Their experience showed that people who purchased a new car had more claims in the first 3 years. Well, I explained, that seemed counter intuitive to me. The reason I purchased a new car was cuz my old car was rear-ended and totaled. Progressive new this , I had them handle the negotiations with the other parties insurance. The accident was not my fault, the police cited the other driver and his insurance company admitted liability. If I had not purchased a new car, I would have nothing to insure, and no need for Progressive. In a very pleasant manner, the lady explained that , well, that's policy and too bad.

Truth is the rate is still almost $200 cheaper than the closest estimate I received, but it is still irritating.

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biggeek4
June 30, 2009 12:39 AM
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7. Don't buy auto insurance. Hell, I was driving around without insurance for over fifteen years.

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pr0kz
June 30, 2009 4:56 AM
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As an insurance agent for Geico, I'd like to try to give a few tips as well that can help out.

1) Mileage. Know how much you drive the vehicle in a year. The lower amount you drive, the better. But don't lie. If you say you drive 100 miles a year, and drive 20,000, it will just be a reason to not a claim.

2) Defensive driving courses. They help more than most people know. Check your state specifics though, because not all states support the discounts for them. Your insurance company can usually direct you to an affordable option if available.

3) Don't report occurrences by will. Let us run the reports to find your tickets, accidents, etc. This may seem shady, but it isn't. We are going to find them anyway. Just don't get angry if the price comes back different after we run reports.

4) If you have a bad credit score, refuse it. If you have a great one, ask it to be ran. If you are the middle, don't worry about it. Contrary to what people have told you, credit is not a large factor unless you are on one of the extreme sides of it. And to be honest, if your driving record is clean, you are probably set anyway.

5) Don't lie. If your son, who was driving your car 3 years ago hit a deer, and we ask you if he was on your policy at the time, say yes. If he isn't on the policy anymore,but was covered then, we won't even factor it in.

I have an entire list of underwriting loopholes I could say, but that may just get me in trouble if I post it publicly. :)

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Elvisisdead
June 30, 2009 1:08 PM
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People - nobody is opening an insurance savings account. It's all a very calculated gamble. You pay the insurance company a certain amount based on rating factors, and they agree to cover you against x amount of liability for y cost. It's in their best interest to use whatever available information that they have to try to estimate the probability that you will incur a loss that they have to cover.

It's math - nothing more.

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Amy Alkon
June 30, 2009 1:41 PM
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If your second/weekend car is a classic, look up Hagerty insurance in Michigan. I used to have a 60 Nash Metropolitan insured with them for maybe $60 a year. Can't be your primary car.

Oh, and they are the nicest people there -- it's actually a pleasure talking to them, dealing with them. They're up in Northern Michigan -- people up there tend to be really nice.

[www.hagerty.com]

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PageEris
June 30, 2009 1:42 PM
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This can be dangerous. Keep in mind you want to save money, but you HAVE to keep in mind what could happen to you if you hit someone and hurt them. The best thing to do is buy as much insurance as you can afford. Why? 1) If you hit somoene and hurt them, chances are likely they'll sue you.2) If you get sued, the insurance company is only on the hook for what your policy limit is. Beyond that, they can go after YOU. 3) Even if you have nothing, they CAN garnish your wages. I've done it to people in my line of work.4) If you're in a collision and your car is damaged, if you don't carry collision coverage, do you really have a couple grand laying around to fix your car?5) If your car is only worth $3,000....if you're in a collision, do you have $3,0000 laying around to replace it? If not, it's a good idea to pay the extra for collision coverage.

Insurance is there to protect you. In economic times like these, the more unsavory portion of society is out there looking for ways to profit off other people. They will not hesitate to find a sleazy attorney and sue you. Jurors don't make rational decisions, but decide on sympathy. The more coverage you have, the better protected you are, now and in the future.

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Amy Alkon
June 30, 2009 1:43 PM
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Also, if you want cheap eyeglasses (somebody said they got theirs through AAA), try services like eyeglassdirect.com -- got my prescrip glasses there for $35.00 plus $4.95 shipping (I bought frames at the beach for $9.00, so the total cost was a little higher). There are cheaper online services for glasses now, too -- but I was happy with these people -- bought from them twice.

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RvLeshrac
June 30, 2009 9:45 PM
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I pay $400/year for my insurance. My car is worth $450.


This is the *cheapest* insurance available, and I know - I've tried every single insurance company that does business in my state (GA), even down to the \"we pretty much only exist to insure illegals\" companies.


The people defending the insurance companies and their calculations need to wake up. They charge the rates they do because they know that you HAVE to have car insurance in most states.

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donjumpsuit
July 1, 2009 6:56 PM
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If your in California, its all about miles!

Dropping my mileage from 8000/yr to 4000/yr cut my insurance in half!

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