How your insurance company shafts you

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MemberSince99
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How your insurance company shafts you

Postby MemberSince99 » Thu Aug 21, 2014 7:53 pm

Ok there are probably a million ways, from using credit to jack your rate up, to giving you wholesale for a vehicle when paying it off, to you name it.


I happened to notice I got the "consumer report notice" in my home insurance information I received from my lovely insurance company. I thought what the hell, the dealer when I got the used vehicle 10 days ago gave my TU score as 778 so now you're a deadbeat with a 778?


But in thinking about it, and reading what they sent carefully, it may be something else. They pulled TU (soft) but also something called "A-Plus Consumer Inquiry Center". I had never heard of this so I Googled it. They are apparently a database of insurance information about both individuals and properties. Interesting I thought. Then I read further about how insurance companies often times take inquiries by consumers into possible claims, and put them in these databases as full blown claims even if a claim is never filed. In fact my very lovely company was listed as having done this to someone who called to ask about a possible claim but fixed the damage on her own then was unable to sell her home because of her "claim" they said she filed in this database.


Last winter a pipe burst in the apartment I live in now which is what spurred me to want to buy a home in the first place, and after it happened I of course called the renter's insurance (that lovely company again) to inquire about a claim and the process. In the end I did not file a claim as my damages with the deductible would not have made that pay, but, it got me to thinking given their history, I wonder if they reported to this database that I in fact filed a "claim" against them.


The notice said I had the right to request the reasons why they are jerking me around I mean charging me a higher rate so I did just that.


If they did this, I think it's outrageous they can get away with this kind of crooked stuff, but in the US environment (totally pro-corporate) we live in, who could be surprised. All these secret databases they don't want us to see about ourselves where they can put whatever lies they feel like with impunity and make you pay for the lies, but if you write a bad review of them online they want to sue you for libel.


Anyway I can tell you whatever they are doing is a crock given I know for a fact my credit is great and I haven't filed an insurance claim since the 80s. We'll see what these lying thieving criminals come up with I'm dying to know.


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Postby MemberSince99 » Tue Aug 26, 2014 12:59 pm

I found out what the issue is. According to the agent it IS my credit. Reasons cited were the following:


Score Reasons: Number of accounts that have been established; Number of
consumer initiated inquiries for credit seeking purposes in the last 24
months; Average number of months open for all accounts.


So you know all that jazz they tell you about how they don't know the contents of your credit? BS. They know. They use your score, and if that's low, then they jack your rate, but if you still have a high score as I do (778 according to the dealer when I bought the Durango 2 weeks ago) and they can't justify it based on that, then they turn to the contents of your credit and if they don't like all the inquiries in the last 2 years even though your score is only affected by the last year of inquiries, then they jack your rate up based on that.


Must be nice to be in a legalized crime enterprise I would guess.


So the bottom line is you can have a great score but if they think you have too many inquiries they'll still jack your rate up.

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Postby MemberSince99 » Tue Aug 26, 2014 4:42 pm

I almost forgot the most ironic part of all of it.


Yesterday in the mail I get a letter from them inviting me to take out a vehicle loan with their bank because of my great credit.


What a hoot. I told the agent that I work in corporate America and realize the left hand doesn't know what the right hand is doing, but they really ought to try to get their head and their @$$ wired together so they don't send me letters telling me what great credit I have the day before they explain that due to issues in my credit they don't like they gave me a higher rate.


True story.


I do plan to leave them though. My Challenger is due for insurance in October so that will be the first to go. I really don't care if the rate is higher at this point elsewhere, I have had enough of these buffoons.

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Postby djrez4 » Tue Aug 26, 2014 7:41 pm

You can switch whenever you want. They have to refund a pro-rated premium.
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MemberSince99
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Postby MemberSince99 » Tue Aug 26, 2014 9:02 pm

djrez4 wrote:You can switch whenever you want. They have to refund a pro-rated premium.



True. It's probably too close to closing to change the homeowners right now, but I did ask when it would be possible to do so via email. The LO was out today so hopefully I'll hear on that tomorrow. I just paid for the Durango for six months I'll let that ride but the Challenger will be with someone else and I want to switch my homeowner's insurance and then when the Durango is up add that to the mix. I'm done with this company I mean that is just to me at least a totally blatant screwing. I honestly don't believe they should be able to raise your insurance rate based on inquiries - if a bank is willing to give me the best mortgage rate they offer, why should these people be able to punish me?
It's funny they over look 100% perfect payments over many years now in my credit and instead focus on number of accounts, inquiries and AAoA which last I checked was about 5 years though I'm sure the new accounts have dropped that a bit.


I'm still stewing I take screwings like this personally, I'm sure they aren't personal and they are an equal opportunity screwer they will bang whatever isn't nailed down, but I still take it personally.

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Postby Vattené » Fri Aug 29, 2014 9:21 am

I am by no means an expert in insurance, but I would certainly agree that this just looks like a thinly veiled excuse to screw you over. If a BANK offers a mortgage to you at their most favorable terms, then how could that many inquiries expose an insurance company to any more risk?!

I would be interested in hearing how the agent responded when you told them that.
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Postby MemberSince99 » Fri Aug 29, 2014 12:28 pm

Vattené wrote:I am by no means an expert in insurance, but I would certainly agree that this just looks like a thinly veiled excuse to screw you over. If a BANK offers a mortgage to you at their most favorable terms, then how could that many inquiries expose an insurance company to any more risk?!

I would be interested in hearing how the agent responded when you told them that.



Her response was to leave me a voice mail saying I know you're upset and I just wanted to give you a chance to talk things out.


I translated that as I want to give you a chance to bitch and moan so then you can get over it, pay us and go on with life.


Yeah the bank did not seem to mind the inquiries, number of accounts or average age of account (which at 5 years isn't shabby even if it isn't out of this world, it probably dropped a bit with the new accounts of course).


I took the most offense at the fact that they sent me a letter the day before they told me this saying that with my credit they wanted me to finance a vehicle through them. On the one hand they tell you give us your business we want a customer with your credit and on the other hand they say well your credit has issues so you have to pay us a higher premium. I realize it's two different departments doing this most likely - marketing on the one hand and underwriting on the other. But if they simply went by score which they are supposed to do rather than your inquiries, then I would have obviously gotten the best rate. Instead, they wanted a reason to get more money out of me so they found a reason to do it.


But you know, in the end, they lose, because I already got quotes from Geico and Progressive and I will be moving my business and that will be that. So, State Farm, rejoice in shafting me now, because it will be the LAST DAMN TIME you do. Enjoy it while it lasts.


Oh I almost forgot to mention - they had cancelled my renters insurance policy as I mentioned, then they turned around and sent me a new bill for it, even though they first cancelled it and know I won't be renewing it. It was at a higher rate than last time but I didn't get the "adverse action" notice. Could be just a routine "because the CEO needs a few million more in his bonus" increase I guess. They don't seem to know whether they are coming or going at that company.


I've pretty well made up my mind to go with Progressive though Geico is still an option. I like that Progressive allows you to build up your deductible over time by being acciident free which I've been since 1988, and that they offer vehicle payoff coverage as well. The Challenger comes up soon and it will be the first to go.

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Postby Vattené » Fri Aug 29, 2014 1:14 pm

Ha! The least she could do is just apologize and move on to the next (without the condescending tone). I guess it is good riddance to them.
-Vattené
FICO-8:
EX - 827 (4/17) | TU - 812 (4/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

MemberSince99
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Postby MemberSince99 » Fri Aug 29, 2014 2:37 pm

I look at it like this - there is plenty of competition. It's not like the cable company where there is one game in town. I've been curious about what the competition has to offer me. The last time I comparison shopped a couple of years ago, State Farm was the cheapest of the quotes I got. They still are, but it's much closer now, and I'm willing to pay more to leave them. The fact it's only a little more is a bonus. I think overall with the extra things Progressive offers it will be a dead heat as far as price and then it comes down to service. If they fail to measure up there is always Geico or others.

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Postby djrez4 » Fri Aug 29, 2014 3:03 pm

I suggest looking into mutual insurance companies instead of traditional.

Consider the difference parallel to credit union vs. bank. There are no shareholders itching for profits at a mutual insurance company.

We use Amica, but also look at Liberty Mutual, Wisconsin Mutual, Rural Mutual, and any other than may offer insurance in Wisconsin.

With Amica, our overall rate was comparable to other companies, but we receive an annual dividend (between 20-25%, depending on the type of insurance) that makes it significantly more cost effective.
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