i don't complain much but i recently got into a bit of a fender bender and my insurance is charging me more in premiums than what i was already paying before.it seems illogical to charge alot for a little accident.
2006-09-19 08:55:00 · 18 answers · asked by ? 2 in Cars & Transportation ➔ Insurance & Registration
Because they can. They know that people have no option but to carry insurance. Insurance companies are some of the biggest money makers on the planet. Their fees have almost doubled in parts of Canada over the past few years and that isn't just for auto. For homeowners etc too.
People who have fender benders often pay out of pcket if they can because they know in the long run they will get screwed by the insurance company.
In Alberta the government put a cap on insurance and actually forced 'rollback' for a while. Sound exciting? Well they also capped the amount of personal injury claim you could make. And the people who got rebates in the mail saw chequs for something like $4.
It is a scam. And some companies will dump you even after one accident saying you are too high risk. Definitely after two.
2006-09-20 19:40:00 · answer #1 · answered by Justme 4 · 11⤊ 1⤋
That's how they make money. They lure you in with low rates and then after your first claim/accident the rates go up quickly.
Also while the damage to the cars are minimal, a quick trip to the ER can cost well over the total value of the car involved.
If the other party went to the ER and had a few test run that can quickly add up.
I agree with others to not report a claim if there is minor damage to the car. As others suggest, it might not hurt to shop around just be warned that the others will ask about your accident.
2006-09-19 09:50:44 · answer #2 · answered by KrautRocket 4 · 1⤊ 0⤋
Because they also ensure the people who get into a lot of damage. The point of any insurance is spreading out the risk. You plan is a great deal for someone who totals their car every year. It just stinks for you and me, who have monior crashes every 5 years. On the other hand, who would be silly enough not to pay for insurance. If I totalled a 60,000 SUV and had only paid 400/month x 2 years, I win! It's all a legalized form of lottery. My dad siad it best, "Only insure those things you can't afford to lose."
2006-09-19 09:06:09 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Insurance companies rely on claim records, license rating and previous accident record when they underwrite risks. It might be that you were rated with a high risk group, or your vehicle has as per their record reported more claims during the year ( grouped as for example Honda Civics had more theft claims, or Nissan Sentras have more accidents this year). Rates are based on group contributions because this is what insurance is all about, a group contribution to help the one with a loss. I hope this answers your question....
2006-09-20 17:33:03 · answer #4 · answered by Jay M 1 · 0⤊ 0⤋
No one "lures" prospective buyers of insurance with low rates, you simply qualify or you don't. When you say the claim was minor, minor is relative. The payout includes what they paid for your car, the other car, and any rental car coverage involved. Sounds like all the factors aren't properly represented in your question...so the answer isn't able to be more specific. Insurance isn't the "evil empire," they're to protect you from things like LAWSUITS when you hit another car. I'd rather have a premium increase than another insurance or private party asking to meet me in court. After about three years it will fall away from your record, so just drive safely. It's been known to happen to the best of us, wink-wink.
2006-09-19 15:36:37 · answer #5 · answered by Pieandchips 3 · 1⤊ 1⤋
Well, when you have an accident your risk changes in the eyes of the insurance company. So you will be surcharged because of it. Your good driving record is essentially gone when you have that accident.
2006-09-19 10:06:27 · answer #6 · answered by Chris 5 · 0⤊ 0⤋
Start shopping around. Sometimes, it has little to do with your driving record, and more to do with your age, credit history, and the type of car you are driving. If you are driving a vehicle that has an average age driver of 18, but you are older than that, you are going to pay more for insurance.
2006-09-19 09:08:12 · answer #7 · answered by indigonipple 3 · 1⤊ 1⤋
Sometimes it's better just to pay the repair yourself than declaring it to your insurance company .I know it seems useless to do so but if it's a small repair by paying it yourself your premiums wont go up and most importantly , your record will remain perfect .It's a sad world we live in lol
2006-09-19 08:58:32 · answer #8 · answered by ground_control_to_reality_check 4 · 1⤊ 1⤋
Your driving record is only one of the factors looked at to set charges. They also look at where you live, what you drive, how many miles you drive in a year, usage of the vehicle, where it's garaged, and your credit record.
2006-09-19 09:15:52 · answer #9 · answered by oklatom 7 · 0⤊ 0⤋
Read the law of large numbers in any higher math text. This is the basis of all underwriting parameters used in almost all companies.
2006-09-19 11:23:20 · answer #10 · answered by Anonymous · 0⤊ 0⤋