Progressive Auto Insurance raised my premium 40% since I opened too many credit cards
Sep 9, 2012, 9:11 pm
#16
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Sep 9, 2012, 9:12 pm
#17
Join Date: Sep 2012
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Sure, but it depends upon what his or her needs are, too. If I have a car I never drive (as I do) because I spend all of my time out of town, the legal minimums are fine for me.
Sep 9, 2012, 9:41 pm
#18
Join Date: Aug 2012
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It only takes one accident to lose everything you've worked hard to earn over the years. I would really reconsider your coverage if i were you regardless if you dont drive the care that much. A better metric would be how much do you have to lose, example if your a college student with no wealth or assets than the state minimum might be okay for you to get by but if you have assets and some wealth accumulated then you definitely want to increase coverage.
Sep 9, 2012, 11:10 pm
#20
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Wirelessly posted (BlackBerry8530/5.0.0.1030 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/417)
But when you go out of town, do you rent cars? And if so, are you relying on your personal auto insurance for third-party liability coverage?
Originally Posted by Sorthum
I assure you, I'm not exaggerating. This car hasn't moved in 18 months. 
Sep 9, 2012, 11:12 pm
#21
Join Date: Sep 2012
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In order, "not usually," "no, I have primary rental coverage via my Amex Platinum," and "the vehicle I actually use primarily is a motorcycle, and that's got much better liability insurance on it."
Sep 9, 2012, 11:13 pm
#22
Suspended
Join Date: May 2012
Posts: 613
what i need the most was comprehensive coverage , car can be broken into, rain, hail, tree, drop on windshield etc!
other than that, since i am defensive and safe driver, I don't get into any accidents and never had any accidents for the past 9 yrs or so
Sep 9, 2012, 11:17 pm
#23
Suspended
Join Date: May 2012
Posts: 613
USAA was far better (and cheaper) before they expanded eligibility. Now they're the same as any other company imho.
People think they're clever by cheating their insurance company. It works until it doesn't. And it doesn't when there's substantial claim, e.g. personal injury. Their experts will investigate, and determine that you lied on your application and your coverage will suddenly be zip, zilch, nada. And you'll deserve every bit of it.
People think they're clever by cheating their insurance company. It works until it doesn't. And it doesn't when there's substantial claim, e.g. personal injury. Their experts will investigate, and determine that you lied on your application and your coverage will suddenly be zip, zilch, nada. And you'll deserve every bit of it.
Sep 10, 2012, 12:02 am
#24
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AFAIK, your Amex Platinum only provides coverage for loss or damage to the rental vehicle, not for damage to other vehicles or for injuries to third parties. (I think that the UK-issued USD Amex Platinum is an exception, and does provide liability coverage also.)
Does the liability coverage on your motorcycle extend to other vehicles rented by you? If not, you'll be stuck with the (usually) paltry minimum liability coverage that the rental company provides, unless you: 1) purchase SLI from the rental company; or 2) have a separate, non-owned auto liability policy.
Originally Posted by Sorthum
In order, "not usually," "no, I have primary rental coverage via my Amex Platinum," and "the vehicle I actually use primarily is a motorcycle, and that's got much better liability insurance on it."
Does the liability coverage on your motorcycle extend to other vehicles rented by you? If not, you'll be stuck with the (usually) paltry minimum liability coverage that the rental company provides, unless you: 1) purchase SLI from the rental company; or 2) have a separate, non-owned auto liability policy.
Sep 10, 2012, 2:22 am
#25
Moderator: Manufactured Spending
Join Date: Jul 2011
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Insurance companies rate people with what they measure as bad credit because that group of people has shown to be more expensive to insure, just like young men.
California passing legislation to limit what can be measured in determining insurance rates means one group will pay less at the expense of the other group that will pay more , the second group being less likely to make claims.
California passing legislation to limit what can be measured in determining insurance rates means one group will pay less at the expense of the other group that will pay more , the second group being less likely to make claims.
I have a good credit score, but I don't think it should affect insurance coverage, even if there is some statistical correlation.
Sep 10, 2012, 5:11 am
#26
Join Date: Dec 2009
Location: NB, Canada
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But is it fair to make someone pay more because they are part of some arbitrary "group" that is more expensive to insure? Especially when their membership in that group is not within their control? If they can charge more to young men, then why can't they charge more to blacks, for example?
I have a good credit score, but I don't think it should affect insurance coverage, even if there is some statistical correlation.
I have a good credit score, but I don't think it should affect insurance coverage, even if there is some statistical correlation.
If insurance companies are unable to charge more to people more likely to have more/more expensive claims, then everybody else will pay more for the high risk people.
Insurance companies do not really care why the correlation is there, they just want to identify them to be able to manage them.
Sep 10, 2012, 9:11 am
#27
Join Date: Aug 2012
Programs: SPG Platinum, AA Ex Plat
Posts: 262
Wrong, what you need most is liability coverage. Regardless if you are a safe driver or not accidents happen. Just because you have not had an accident in the past 9 years that does not exempt you from the possibility of having one in the future. It always amazes me how misinformed people are about simple finance and risk management concepts. Call you insurance agent and ask him/her what it would cost to increase your liability coverage, in most cases it is very inexpensive and worth every single penny.
Sep 10, 2012, 9:59 am
#28
Join Date: Feb 2003
Location: Reston, Virginia, USA
Posts: 653
Apologist for insurance companies? Nah!
My degree is in mathematics. I started out to be an actuary. (An actuary is the bookie for an insurance company.) The first two actuarial exams are really just the GRE for undergraduate math. Easy.
Subsequent exams are in insurance law. Suddenly I realized I would have to face my then newborn son telling him, "What your daddy does for a living is cheat widows and orphans."
Building chemical weapons would be a more ethical career.
My degree is in mathematics. I started out to be an actuary. (An actuary is the bookie for an insurance company.) The first two actuarial exams are really just the GRE for undergraduate math. Easy.
Subsequent exams are in insurance law. Suddenly I realized I would have to face my then newborn son telling him, "What your daddy does for a living is cheat widows and orphans."
Building chemical weapons would be a more ethical career.
Sep 10, 2012, 12:34 pm
#29
Original Poster
Join Date: Dec 2010
Posts: 1,310
An update:
I called today. No luck getting the premium back down to $640. They run credit every 36 months.
One thing that did change was they updated was the age I opened my first account. It went from a credit card loan at 21 to an auto loan at 18. That was enough to lower the premium from $908 to $750.
I'm 35 now and by lowering the age at which I got my first loan by three years was able to reduce my premium 18%. Insanity.
The rep I spoke with said that the more accounts one opens the more likelihood one would file a claim.
Basically if you open four or more accounts in 12 months you get dinged. Three or less is considered average and you don't get penalized for it.
I called today. No luck getting the premium back down to $640. They run credit every 36 months.
One thing that did change was they updated was the age I opened my first account. It went from a credit card loan at 21 to an auto loan at 18. That was enough to lower the premium from $908 to $750.
I'm 35 now and by lowering the age at which I got my first loan by three years was able to reduce my premium 18%. Insanity.
The rep I spoke with said that the more accounts one opens the more likelihood one would file a claim.
Basically if you open four or more accounts in 12 months you get dinged. Three or less is considered average and you don't get penalized for it.
Sep 10, 2012, 1:09 pm
#30
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