I hate insurance companies!!!

[frankietabs]

I just changed over to a new insurance company as I was under my dad's policy so now I am independent. I got a rate of about just under $1600 canadian a year.

I get a call today from my insurance stating that I had been in a accident in 2001 therefore my rate is going up about $600 for the year. Basically I touched this woman's car bumper at less then 20km/h. There was no visible damage but we couldnt see to well because it was raining and it was at night. We exchanged phone numbers and insurance.

I never knew that she filed a claim for about $300 and change but was informed of this by my new insurance company. God I hate insurance, it's just a big scam. If you ever are in an accident and file a claim you rates go up. It's bull****!!! BTW she said if the record stays clean that next year the rate will go down as after 6 years yor record is clean. Sorry just needed to vent.

[marleyfan]

Here in BC we get informed of the claim and the cost of the repairs. We are given the option of paying for the claim ourselves so our rates will not be affected. I would have thought that the insurance company would be required to inform you of a claim against you so that you have an opportunity to dispute it. If they are required to inform you and didn't do so there may be some legal remedies. The cost of those remedies may not be worth it tho.

[kc5f]

Last weekend I cancelled the insurance on my Ford Probe, which I sold to a neighbor for $500. When I got the confirmation email from them, the new rate for the remaining cars was $120/yr more than before I cancelled the Probe... They do live in their own world, don't they!

[XterraVersa]

Evaluate the cost savings and your ability to pay it, if you up your deductable to $1000. I save about $400 per year & keep $1000 in savings in case I need it. Also check to see if you get a discount for having multiple policies. I am assuming you live on your own now, see what a minimum renters insurance policy will cost. The multi policy discount on your car may be greater than the cost of the renters insurance. Plus you will some coverage for property loss.

[C-Kwik]

Insurance is one of those things you pay for that you don't see much benefit from on a regular basis. Particularly if you are a better driver. It only takes one mistake, even a simple one, to really show you the value of having insurance. I handled insurance claims for 10 years. Minor incidents usually get the most negative attention. In major accidents, insurance can be an absolute relief if your coverage is good.

As far as your rates, it's all based on risk. The more risk you are the higher rates are. To some extent law determines how insurance companies might have to evaluate and rate risk. I can speak to Canada, but in Cali, rate changes due to accidents can only occur if you are 51% or more at fault AND there is more than $750 in damage, an injury or fatality. And this is dictated by law. And at least a couple of insurance companies have a forgiveness program in effect, so there is some level of trying to keep rates down on the insurance company's part. Now I have heard of some shady things done by insurance companies, but no more than any other industry. It's a problem when that occurs, but certainly not a universal thing.