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Old Sep 8, 12, 10:03 pm   #1
 
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Progressive Auto Insurance raised my premium 40% since I opened too many credit cards

My policy is coming up for renewal. No changes to the policy, no tickets, no address changes, no accidents...nothing. However my premium went from $640 to $908 which is a 40% hike. I've had Progressive Insurance for 13 years now.

Confused I called up. After speaking to two reps I finally got my answer: your credit has changed. Which is ironic since my credit score has actually gone UP nearly 25 points (750 to 775). I've never had a single late payment in my life. My credit has never been better.

So I dig into the document. Progressive starts everyone with a score of 100, the lower the better. I had 20 points subtracted for various good things - no late payments, ect. However I had 15 points added due to opening new accounts. Good right?

Well not good enough. I was dinged since I've opened "4 or 5 loans or accounts opened in the last 12 months". I've opened four credit cards and done a refi on my place in the last 12 months. That's it. One credit card every three months. Opening those four cards was enough for me to drop out of that perfect tier and cause my premium to rise 40% a year.

I could have had two speeding tickets and my premium wouldn't have been raised this much.

Anyone else experience the same thing?

Last edited by Jesperss; Sep 8, 12 at 10:27 pm..
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Old Sep 8, 12, 10:31 pm   #2
 
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Mine went up by $150 despite not having any accidents . I did an online quote with geico and it was over $120 less so I switched . When I called they said they were raising everyone's policy in Florida due to the fact that the company lost too much money this year due to fraudulent claims and others
I told progressive geico had given me a much lower quote and they said they couldn't price match . Oh well I am happier with geico
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Old Sep 8, 12, 10:33 pm   #3
 
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Yes. Geico has better customer service
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Old Sep 8, 12, 10:48 pm   #4
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Quote:
Originally Posted by Jesperss View Post
Opening those four cards was enough for me to drop out of that perfect tier and cause my premium to rise 40% a year.
You don't have to put up with that. If you decide to switch, it would be nice if you could send a concisely worded letter to that effect. If only for the catharsis of it.
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Old Sep 8, 12, 11:59 pm   #5
 
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One thing about USAA is that they tend not to play this game-- but they outsource their motorcycle insurance to Progressive.

So for laughs about five years ago, I inquired about liability only coverage on a Suzuki SV650-- Progressive wanted $5K a year. On a bike that costs $6-7K new.

A local broker gave me the same coverage for $600.

Ever since then, I've had no interest in Progressive as a company...
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Old Sep 9, 12, 1:07 am   #6
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Glad that in California (where I live) that the insurance companies can not use credit scores to determine insurance rates. I have one homeowner's insurance outside of Calif (TX) and they use credit as one factor to determine rates. My rates for the TX homeowner's policy is pretty decent in spite of having only a "fair" insurance credit score. (my FICO's are excellent: well above 750, over 800 this past June)

My FICO's in mid June (when I started my 3 refi's on my rentals) were 804 for the mid bureau score. (Experian). My insurance credit score was only in the fair category and got even lower with all the refi's and CC's recently showing in my account.

The insurance credit score in my case is not relevant. In 37 yrs of driving, I only had 2 accidents (no claim paid out in 1977 due to being very minor--$20 of damage! and in 2006, there was $2700 damage to my car that the other party paid for since I was not at fault). No moving violations ever in 37yrs of driving.

I only had one minor homeowner's claim in 1988 when I bought my first house. (claim was <$1000). I presently own 4 rental houses and bought/sold several other houses over the years.

Bottom line: My low insurance credit score is not relevant because I had very few claims. I'm glad that California doesn't allow insurance companies to use credit scores to determine insurance rates. California passed a proposition that where a person lives can not determine auto insurance rates. Mine auto/homeowners rates stayed low throughout the years because of other factors that seem more relevant than using credit score, etc.
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Old Sep 9, 12, 5:54 am   #7
 
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Quote:
Originally Posted by chemist661 View Post
Bottom line: My low insurance credit score is not relevant because I had very few claims. I'm glad that California doesn't allow insurance companies to use credit scores to determine insurance rates. California passed a proposition that where a person lives can not determine auto insurance rates. Mine auto/homeowners rates stayed low throughout the years because of other factors that seem more relevant than using credit score, etc.
Not to be an apologist for the insurance companies, but they do not set rates on anecdotal stories of good drivers.

Younger drivers pay more. I never had a speeding ticket / claim in my first 10 years of driving. Does this mean the data showing young drivers are a bigger risk is wrong? Of course not.

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.
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Old Sep 9, 12, 12:29 pm   #8
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I am in Florida and they told me the same thing about fraud and increase in premiums. But the premium was still less than the other companies. two tips:

1) Instead of renewing your policy, just get another quote and they will give you $50 off for online quote

2) I opted in for Snapshot and they give me 27% off after 1 month!
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Old Sep 9, 12, 3:41 pm   #9
 
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Quote:
Originally Posted by Jesperss View Post
My policy is coming up for renewal. No changes to the policy, no tickets, no address changes, no accidents...nothing. However my premium went from $640 to $908 which is a 40% hike. I've had Progressive Insurance for 13 years now.

Confused I called up. After speaking to two reps I finally got my answer: your credit has changed. Which is ironic since my credit score has actually gone UP nearly 25 points (750 to 775). I've never had a single late payment in my life. My credit has never been better.

So I dig into the document. Progressive starts everyone with a score of 100, the lower the better. I had 20 points subtracted for various good things - no late payments, ect. However I had 15 points added due to opening new accounts. Good right?

Well not good enough. I was dinged since I've opened "4 or 5 loans or accounts opened in the last 12 months". I've opened four credit cards and done a refi on my place in the last 12 months. That's it. One credit card every three months. Opening those four cards was enough for me to drop out of that perfect tier and cause my premium to rise 40% a year.

I could have had two speeding tickets and my premium wouldn't have been raised this much.

Anyone else experience the same thing?
Quote:
Originally Posted by Sorthum View Post
One thing about USAA is that they tend not to play this game-- but they outsource their motorcycle insurance to Progressive.
Actually USAA has done exactly the same thing to me as the OP. I opened four new CCs in a year and have a FICO around 810. No refi here though, and no claims ever on any policy. They jacked up my car and home insurance dramatically and I'm shopping for a new insurer.
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Old Sep 9, 12, 4:19 pm   #10
 
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Progressive once decided my fiance was my 16 year old daughter, raised my rates and withdrew the next quarter's premium.

"Do you not have the money to pay the new premium?"
"Uh - that's not the point. She's not 16. She's not my daughter. I did not authorize this withdrawal."
"What would you like for me to do?"
"Cancel this coverage."


Switched to State Farm, never looked back.
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Old Sep 9, 12, 4:21 pm   #11
 
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The other thing that annoys me is that all three companies--State Farm, Progressive, and Geico--litter the airwaves with commercials 24/7. Television advertising isn't cheap so this is where a lot of your premiums go.

And then USAA, which doesn't advertise (much), hardly beats them on price.
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Old Sep 9, 12, 7:40 pm   #12
 
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Quote:
Originally Posted by China Clipper View Post
The other thing that annoys me is that all three companies--State Farm, Progressive, and Geico--litter the airwaves with commercials 24/7. Television advertising isn't cheap so this is where a lot of your premiums go.

And then USAA, which doesn't advertise (much), hardly beats them on price.
Usaa also pays their employees more and issues a yearly dividend to their insurance holders
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Old Sep 9, 12, 7:42 pm   #13
 
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USAA is probably the only company mentioned here that's actually responsive in a meaningful way to customer feedback. The few issues I've had with them over the years have always been addressed in a very human way.
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Old Sep 9, 12, 8:03 pm   #14
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Quote:
Originally Posted by Jesperss View Post
My policy is coming up for renewal. No changes to the policy, no tickets, no address changes, no accidents...nothing. However my premium went from $640 to $908 which is a 40% hike. I've had Progressive Insurance for 13 years now.

Confused I called up. After speaking to two reps I finally got my answer: your credit has changed. Which is ironic since my credit score has actually gone UP nearly 25 points (750 to 775). I've never had a single late payment in my life. My credit has never been better.

So I dig into the document. Progressive starts everyone with a score of 100, the lower the better. I had 20 points subtracted for various good things - no late payments, ect. However I had 15 points added due to opening new accounts. Good right?

Well not good enough. I was dinged since I've opened "4 or 5 loans or accounts opened in the last 12 months". I've opened four credit cards and done a refi on my place in the last 12 months. That's it. One credit card every three months. Opening those four cards was enough for me to drop out of that perfect tier and cause my premium to rise 40% a year.

I could have had two speeding tickets and my premium wouldn't have been raised this much.

Anyone else experience the same thing?
you shouldn't have given your SS number to them in first place!

They say it is optional but will help you get better deal if your score is good but it is all bul****!
I have never entered my SS number on auto insurance purchase!
I pay $307 for 6 month with geico, 20$to $40k bodily injury, uninsured coverage, property damage 20k, got road hazard included, $250 comprehensive deductible, $1k collision deductible !


switch to another like geico or national wide or etc!
Choose PLEASURE when it asks what you use it for
enter 0-5K annually mileage driven

YOUR RATE WILL BE bit lower
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Old Sep 9, 12, 8:50 pm   #15
 
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Quote:
Originally Posted by Sorthum View Post
USAA is probably the only company mentioned here that's actually responsive in a meaningful way to customer feedback. The few issues I've had with them over the years have always been addressed in a very human way.
USAA was far better (and cheaper) before they expanded eligibility. Now they're the same as any other company imho.

Quote:
Originally Posted by emptiness View Post
I pay $307 for 6 month with geico, 20$to $40k bodily injury, uninsured coverage, property damage 20k, got road hazard included, $250 comprehensive deductible, $1k collision deductible !


switch to another like geico or national wide or etc!
Choose PLEASURE when it asks what you use it for
enter 0-5K annually mileage driven

YOUR RATE WILL BE bit lower
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.
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