Insurance... not at fault claim raises rates ?

[Neilk]

I decided it was time to do some insurance shopping so I went to Progressive.com and entered all my info, minus an accident in which SOMEONE ELSE backed into me resulting in a claim. Why TF, does adding a Not at fault accident to my quote increase my rates $100/year? That's BS.

Just venting. I guess insurance companies could argue that "good" drivers don't have claims. But it still seems like BS to me.

[bryanthompson]

It's a total scam. I switched to geico though, and comp & collission on the stratus plus liabililty on the 944 comes just under $1k every 6 months. A lot better than allied, which went up to $1700 / 6 months.

Geico looked farther into my driving history and found an accident 4 years ago that hurt me a lot. Of course, my age doesn't help at all. I can't wait to turn 25...

[legion]

Gawd, I pay $60/month ($360/6 months) on my 951. Of course, I cancel liability and collision in the winter when I store the car. I basically end up paying $400 a year.

Every insurance company has very secret, closely-held underwriting rules. Most of them are based on statistical analysis, and therefore don't necessarily make sense and can't be explained.

Another example is credit scores. It turns out that there is a very high correlation between credit scores and the likelihood of filing a claim. Why? Who knows, but the numbers don't lie.

Keep in mind, with insurance, you get what you pay for. I insure my house, cars, and some other valuables with a big insurer. They were a little more expensive, but I've never had a problem. I've had several claims--just this year my basement flooded and my 944S caught on fire--and neither resulted in premium increases. When I had my Grand Am though, every claim came with a steep premium increase...

[Jeff Higgins]

The super cheap insurance companies can only charge their low rates because of a couple of factors. One, instant increases for any claim or citation, regardless of fault on the claim or seriousness of the citation. Two, terrible service. File a claim with one and see what happens. Talk to people who have; ask around next time you are at any car event. I stick with the bigger companies with good reputations. I have never had a rate increase due to a claim. I get prompt service on claims. I have met too many people that have had to go to court just to get their insurer to pay a claim, even when it was quite obvious they were liable to pay. Agents that won't answer phones, won't return calls, won't acknowledge a letter, etc. All tactics used by the cut-rate companies. Just stay away from them.