Insurance advice?

charley95

I've been with SF for decades and can't even remember the last time I've made a claim. I have home and auto with them. Backing into my garage, sure enough I hit my motorized folding mirror. Long story short, 1400 damage with a 500 deductible. My agents gal tells me I'll lose my accident free discount for 3 yrs. therefore costing an extra 220 a year. In all it will cost me 1160 out of pocket.

Do I call agent herself and threaten I'll be shopping for another company? I'm guessing I could find another company cheaper only to see my rates increase later?! It ticks me off that I'm not one who chronically makes claims only to feel penalized for a somewhat minor claim.

Thoughts?

cfrizz

I found out the hard way that once you file a claim, (mine was for home) another company won't want to touch you for that same three years.

Emlyn

May be a good time to change to a $1K deductible and reduce your premium. Shop around for the mirror repair and pay out of pocket. Insurance companies don’t like to pay out on that sort of thing.

txcoastal1

I agree pay out of pocket as this claim is going to cost you $1100 over the next 3 yrs

tonyb

txcoastal1 wrote: »

I agree pay out of pocket as this claim is going to cost you $1100 over the next 3 yrs

This ^^^

After you pay out of pocket, shop around for better insurance. You'll still have a clean claim free record so other companies may give you a better rate. Recoup the out of pocket expense by switching companies.

monepolk

I found out the hard way that even if you file a claim and they don't pay anything they will still ding you. I had an issue with my waste stack so I asked my insurance company if it was covered. I explained that wasn't filing a claim I just wanted to know if it was covered. The agent said the only way that they could answer that question was to file a claim. I filed a the claim a day or so later they said it was covered, I said thanks but I decide to pay for it myself. The next time I applied for coverage with a new company this was listed when they did the check to see if you've had any claims in the last few years. When I explained to the prospective co. that it was filed for informational purposes only and that no payout was made. They said it didn't matter they just check on claims filed.

txcoastal1

Same happened to me when a Lowes truck lost a bundle of roof shingles and it dented and scratched the hood and windshield

Lowe’s is self insured so they told me to get an estimate through my insurance company and they cut me a check

When my premium renewed I asked why they hiked up my premium...the Lowe’s estimate grrrrr

joecoulson

Absolutely pay out of pocket. Here is the other thing. Let’s say you do claim it. They will pay it. But then let’s say you get in a real accident soon after, most likely you will get dropped from coverage and have to go with high risk insurance. Which is VERY expensive. That is what happened to me with my home. Made a small but valid claim on my home about 10 years ago. Then had a true big water leak a few months later. I got dropped after that second claim was paid. Had to go with high risk which costed me over $500 a month for the next three years.
Use insurance very wisely.

mdaudioguy

Agree with Joe above. I've always considered my insurance to be for catastrophic events (and I hope to never need it for that). The real problem here is how freaking expensive a mirror replacement is. Of course, there's probably more tech in these now than was in the moon lander...

mhardy6647

Yup.

charley95

Thanks for tips guys! Think I'll just eat this one and replace it myself. Of course the mirror is heated,blind spot monitor and auto folding. I love new tech. except when ya have to fix it. I might just raise deductible to a 1000 and call it a day. Not sure if it's worth the hassle of changing insurance.

mhardy6647

I think insurance is pretty much a zero sum game.

Think of insurance as gambling -- you're betting a certain amount of money (per year) that you won't have to spend a larger amount of money that year. But if you win, you still lose (as the OP's learned already from his financial analysis of his current imbroglio); the insurance company basically recoups their expense over time.
... and I suspect it all nets out about the same, no matter who the insurer is. The insurance payout is more like a loan than a payout.

High deductibles, unfortunately, make sense given the high cost of modern vehicles, not to mention repair costs.

Don't even get me started on body shops.

PS I don't like the modern auto "technology", for the simple fact of the cost to purchase and the cost to repair. I mean, who decided it was in the end user's best interest for the car's HVAC to be integrated with the infotainment system?



[/Andy Rooney]

charley95

I'm just gonna order a new assembly for 750 unfortunately. I have a nephew who is an ace mechanic who will help me install. He's just an awesome kid who's always willing to help ya out whenever your in a bind.

mdaudioguy

charley95 wrote: »

I'm just gonna order a new assembly for 750 unfortunately. I have a nephew who is an ace mechanic who will help me install. He's just an awesome kid who's always willing to help ya out whenever your in a bind.

BINGO!

rooftop59

Yea, pretty much agree with the general consensus. Auto and Home insurance is best utilized as catastrophic. Get the highest deductible they will allow and put the monthly savings into a savings account. Since I also have a savings account for emergencies, there will be no smaller thing that I can't just pay for. I'll still be pissed at myself or whoever caused it, but that will pass and I'll pay and live on.

The larger problem is that for many (most actually) people they can barely afford the insurance and have little to no savings so they get a lower deductible plan and if something like the OP's situation happens it really puts them in a bind, which is why in a city like mine you see SO many cars missing windshields, mirrors, with small to medium dents etc.

Emlyn

One of the growing hidden costs for car ownership these days is all the sensors and monitoring gear around the vehicles. On some with the forward collision radar stuff in the windshield that means recalibration at the dealership if the windshield is replaced. I think on most vehicles those sensor systems are now being moved to the front grille. 360 degree parking cameras operate from small cameras in the mirrors and elsewhere. Parking sensors in the front and rear bumpers can add expenses to fender bender repairs that did not exist a few years ago.

Insurance companies don't want to pay for those repairs which can really add up over time so they rig their systems with body shops to make it so it's only going to make financial sense for someone to claim for catastrophic damages. That's how I see it, so I carry a $1K deductible which is the max I can with financing or leasing.

Jimbo18

I had SF, and three years ago, my premium went up for no reason. No accidents, no tickets, no claims. It wasn't too much, so I paid it. Then it went up again, 6 mos. later, and then again 6 mos. after that. I have home and life with them as well.

I went to an independent insurance agent that handles about a dozen different companies. I went with National General (used to be GMAC) and my rate went down almost $500 for the year. I suspect that somehow, SF knew I was looking at other insurance, because my former agent contacted me to say it might be time for me to go in to see if they could lower my rate.

motorstereo

I had a slight fender bender a couple months ago (a young driver backed into me) and I payed out of pocket rather than involve any insurance company. Like mdaudioguy I only use insurance for catastrophic events that I'm unable to pay for on home, auto and mc. Knock on wood I've been very fortunate over the years.

rooftop59

motorstereo wrote: »

I had a slight fender bender a couple months ago (a young driver backed into me) and I payed out of pocket rather than involve any insurance company. Like mdaudioguy I only use insurance for catastrophic events that I'm unable to pay for on home, auto and mc. Knock on wood I've been very fortunate over the years.

So it was the other driver's fault and you paid for the repairs? Quite generous of you!

motorstereo

$200 out of pocket. It was worth it to me rather than deal with filing a report.

jeremymarcinko

I’ve heard stories of insurance companies raising rates for those who haven’t had any accidents/claims in many years or ever. The reason I hear it is because statistically they were due for a claim. Makes no kind of sense to me.

DaveHo

Can't ever remember my insurance not increasing a little with each renewal. This is across several different companies. Not the norm?

rooftop59

DaveHo wrote: »

Can't ever remember my insurance not increasing a little with each renewal. This is across several different companies. Not the norm?

I don'w know about each renewal, but most do raise the price regularly. That's why most finance folks advise shopping around for a new company at least every 5 years, if not sooner...the problem is that if you look at customer reviews online, most of the smaller companies SUCK when it comes to actually paying out claims, which is why you have the dang insurance! I switched back to allstate because they actually get some of the higher average reviews...

pitdogg2

rooftop59 wrote: »

DaveHo wrote: »

Can't ever remember my insurance not increasing a little with each renewal. This is across several different companies. Not the norm?

I don'w know about each renewal, but most do raise the price regularly. That's why most finance folks advise shopping around for a new company at least every 5 years, if not sooner...the problem is that if you look at customer reviews online, most of the smaller companies SUCK when it comes to actually paying out claims, which is why you have the dang insurance! I switched back to allstate because they actually get some of the higher average reviews...

Allstate screwed me, they never even investigated the fraud being perpetrated against them. They then dropped me at the end of my term because of the amount they paid out. Then they turned me into the state and put me on a list. Thank god for the insurance company that looked at the paperwork the claimants left at my house that Allstate refused to even look at. I had all my insurance with Allstate Home, multiple auto's and life ins. I dropped all of it and took it to another company. They begged me to keep my insurance with them and still come back every few years and try to lure me back. One agent even remarked that they had seen no investigation into the claim and that seemed strange. I keep telling them it will be a cold day in He77 before I ever have any policies with them as they broke my trust for them protect my interest.

Up until that point where they dropped me and did shady stuff I had no complaints or claims with them. It boggled my mind that they would not investigate when I was telling them there was a fraud going on. they paid out 10's of thousands of dollars and did nothing to protect my behind. It took myself thousands of dollars to correct they stuff they did.

heiney9

Insurance rates have a lot to do with where you are located, age and to a lesser degree your credit worthiness.

I have had 2 claims, one auto which was a hit and run in parking lot. $4K worth of damage to a 6 month old car. The other was roof damage due to large hail. Paid my deductible in both cases and got a check for each incident.

New roof goes on this Summer, car was fixed about a year ago.

Neither were remotely my fault as I was parked in a proper parking spot, nor can I control the weather.

Rates stayed the same the past 2 years for both auto and homeowners other than the typical very small yearly increase of less than $3 a month.

H9

heiney9

They don't raise rates arbitrarily. There are many factors that go into it as well as how many claims for similar vehicles and homes are paid out each year in your area. I've actually had insurance go down in the past (because of above factors). Not so much anymore, but my rates have been fairly steady the past 5-6 years. I am also over 50 now, so I'm sure that statistic helps me. As well as not having any claims in the past 10 years or more except for the 2 I mentioned.

Don't get me wrong, I think insurance could be much better, but they don't raise rates to just raise rates as some of you seem to think. But. I've been treated fairly and it sounds like some of you have had some terrible issues, for whatever reason. So I can sympathize.

H9

heiney9

Actually after the hit and run in the parking lot. I lowered my deductible on collision from $1K to $500 since I was pissed that I had to pay it since the idiot just left the scene.

My 6 month premium went up like $25 w/the deductible decrease. I think I can handle $50/year for a lower deductible if this happens again.

Actually the worst thing that will come out of this is most likely a hit on the car fax when I go to sell the car. It will show it was in an accident and I will loose value, even though I have all the documentation as well as photos of the damage and step by step repair. That's going to sting more than anything else. It was just the passenger rear wheel arch that was wrinkled up.

H9

heiney9

tonyb

That dent is 4k worth of damage ? Is your car made out of MIT cables too ?

heiney9

tonyb wrote: »

That dent is 4k worth of damage ? Is your car made out of MIT cables too ?

Nope, just lots of labor involved.

heiney9