blktour

So I have insurance with USAA, and so did the person that I got into the accident with. we backed up into each other. we were considered 50% fault.

So at the end i guess they called it 50% fault. they said there is no such thing as NO FAULT.

so ok thats fine. I paid my deductible. ($500) for the total damage on mine to equal about $1400. the other person was about $1500.

so my insurance has been $140/mo and then with this accident after then, they are charging me about $383!!!

is this protocol? what are the steps to choosing how much i pay. now have you, this is my first accident ever!!!!
I am single male, 24yrs old, and first accident

I mean come on.

someone in insurance help me out here. how can i get them to lower it. i mean in 6 months, i almost pay for both accidents, and technically its not my fault. she ran me. they just chose %50 fault. I had pictures to show that I was out further than her.

im heated!

I am thinking about dumping them and going to state farm. I know I can get a better rate with ONE accident. Has this happened to anyone? one accident and they pay a bunch for it?

Plan9

Call them and explain.

I did it when I had my oh-no and they'll work with you if they think they're going to lose you.

__________________
Whatever you can carry.

"You should not drink... and bake."

Sensei

I work in the claims department for a Top 5 auto insurer and it's bullshit that no fault accidents don't exist. If you didn't have your key in the ignition and the other guy backed into you, no one would try to argue you even had partial liability.

That being said, in order to pay out of third party coverage (liability) a company will take the word of its policyholder unless there is a witness or overwhelming conflicting evidence. Think of how pissed you would have been if the other guy's car was fully covered under your 3rd party coverage. Also since the other policyholder was found 50 percent at fault, in most states you would only owe 50 percent of your deductible. Not sure if your deductible is $1000 but if you paid your full deductible you might be owed half of it back.

USAA actually has the highest customer satisfaction rates out of all the auto insurance companies so those who qualify for it usually stick with it. Of course paying 250%+ of your prior premium is outrageous so I'd consider shopping around (perhaps to my company ).

__________________
Slacking off with style since 1981.

blktour

WELL yes, I paid $500 deduct. my $deduct was $500. no half here for some reason.
good to hear that I get $250 hopefully.

well we backed into eachother, when i took pictures and sent them to them, u could clearly see that I had water marks from my exhaust further out than the other person was. had pictures to prove, but still got dealt 50%.

they are nice but thats about it. they dont ever try to save you money or offer you specials, or tell me ways how to save. its like they are only nice when i call them. they call Corporal H. instead of Mr.

well what is your company called? so I can look into it. do you have "tfp discount?" lol

Plan9

I don't like them calling me Sergeant Crompsin. Creeps me out.

USAA saved me a quite a bit of cash on my premium by dropping some "factors" earlier than normal after a phone call and a mention of dissatisfaction. They didn't have to do that but they did it on their own, it was a casual call regarding a quote for another vehicle. They're a business and it's good business to keep customers.

*shrug*

__________________
Whatever you can carry.

"You should not drink... and bake."

surferlove007

Hey man, welcome to the club on the outragous deductable.
My folks were officers in the Air Force and thus we have USAA for our banking and auto insurance.

Here's my dads advice...if you get into an accident DON'T CALL THE INSURANCE COMPANY UNLESS THE CAR IS TOTALED...OR you WILL be paying for a new car you don't get to drive due to your new higher insurance rate. Sorry man but since we're younger than 25 and you're a male your rates will suck. Just plain and simple. Also the higher your deductible the lower your rates. Fortunately females tend to be cheaper.

I wouldn't have even gotten them involved honestly and tried to get it fixed at a local place. My car got hit 3 times while I was living in Lubbock, probably several thousand dollars worth of cosmetic damage and my parents told me to deal with it. I'm 19 mind you. I'm driving a paid off VW Beetle also. Don't know if you're doing payments on your car...that could affect your decision get them involved too. I don't know if you're paying your own rates...but they will take forever to come down since you reported this probably.

USAA is a great bank, I wouldn't switch, a lot of people would kill to have them. Not to mention it's a true privilege and honor to have them. I think auto insurance is a necessary evil. If you total your car then it's good but if it's something minor your rates shoot through the roof and take forever to come down. I advise leaving the insurance folks out if at all possible next time (hopefully there won't be a next time), they never really help at this time in our lives. Wait till you're 40, then you might have a decent rate where they can offer help worth having.

I agree with Crompsin about the customer service. They are the best. I've never had bad customer service with them. I over drafted by a few cents one time and they refunded it and told me not to worry, of course it was my firs time. Really these guys are top of the line, don't listen to the other guy telling you to switch. You won't find better rates with another company.

Cynthetiq

That's the problem right there.

Male, Under 25 and not married, what a wonderful high isurance risk demographic!

__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

Sensei

With some companies (but not mine), your rates will increase if your car was moving and a claim is filed regardless of fault. If the repairs are only a few dollars above your deductible, it might be a good idea to leave your company out. I say might because initial estimates are not always accurate because additional hidden damage is found all the time.

Also, take body shop estimates with a grain of salt. When you get an estimate, one of the first questions they ask is "Will this be Insurance Pay or Out of Pocket?" The estimate you get will vary widely depending to the answer to this question. If you say OOP, the shop will do put only the necessary items on the estimate to get your car safe again and looking decent (but not necessarily to pre-loss condition). If you reply insurance, they quote will likely be for the worst-case high point of the cost range. If there's a chance the molding trim will break when they paint your door, then it'll probably be on the estimate. So what if the trim doesn't break and the shop doesn't need to buy the part? Well, let's just say I don't think the shop will rush to look up an address to send a refund. What if there isn't extra damage behind that bumper? Well, they still get paid for labor to replace an undamaged piece with another undamaged piece.

If you do file a claim and you own your car outright (do not have a lien on it), you do not have to have all of the damages repaired. Consider if your car is damaged across the fender, two doors, and quarter panel but only cosmetically. You could choose to only replace the side mirror and then pocket the rest.

Below is also a good article. One situation that annoys me is when policyholders think their iPod and Gucci suitcase is covered when it's stolen out their cars. Sorry but read your policy. Would it be fair for someone doesn't own an iPod (or keeps it at home) to pay the same rates as some genius who keeps his iPod in his car? Hmmm.

__________________
Slacking off with style since 1981.

TotalMILF

OH MY GOD don't even get me started on USAA!

Well, now I'm started. Damnit.

When we moved from Arizona to Michigan I called USAA and had them change our limits to the Michigan minimums. They were super nice, as always, and promptly raised our monthly payment from $190 to $440.

We had NEVER had an accident, never been issued a speeding ticket, NEVER even been late on a payment. The only claim we have EVER made was a comprehensive claim on his eclipse after someone took a baseball bat to the side window when it was parked on the street (several other cars on the street had the same misfortune, and it was an upscale Scottsdale neighborhood).

Guess what? I just saved a bunch of money on car insurance by switching to Geico. About $140/month, to be exact. When I called USAA and said I had found a much better rate (with a lower deductible and better coverage) with another company USAA didn't even try to offer me a more competitive rate. They just said "sorry you feel that you have to leave us." Like, whatever. Assholes.

As you mentioned, they're totally nice and sweet but they're definitely not out to save you any money. I say fuck 'em, go shopping for new car insurance. Worked for me!

__________________
"I'm sorry, all I heard was blah blah blah, I'm a dirty tramp."

surferlove007

That's unfortunate
Although I can see why the rates went up with the move. Michigan has a lot more factors for possibilities than Arizona. Poor thing.
Meh I still love em.

ThatJohnGuy

You will get a nice break once you hit 25. Its all I looked forward to when I hit that age.

thingstodo

MI is a no fault state so rates are higher. I moved here from FL with GIECO and my rates sored so I switched. Progressive has been unbeatable.

On the % of fault thing - I disagree and have a police report to prove it. I was hit from the side and the officer said the other driver was obviously 100% at fault. That's how insurance took it and here we are.

24, single...you are screwed for now. I would, however, check around for better rates. You usually get huge discounts for paying in advance - sometime as much as 20%. Bite the bullit, save up for the next 6 months and pay in advance!

__________________
If you're wringing your hands you can't roll up your shirt sleeves.

Stangers have the best candy.

blktour

Well tomorrow is my first day off in a month! and I will be shopping around.

i will shop at :

progressive

statefarm

allstate

geico


there were about two more that I saw on tv that i forgot the name of: it was NOT esurance. it was something else.

also, thanks for the insight and i knew the whole "you are 24 and single " was going to come up. but this was the first accident so that is why i was shocked.

TotalMILF

Yeah, I was torn between Progressive and Geico. Their rates and coverage were almost identical. I ended up choosing Geico because their rates will be even better than USAA's ever were once we get back to Arizona. And I love the gecko.

Good luck!

__________________
"I'm sorry, all I heard was blah blah blah, I'm a dirty tramp."

Fotzlid

all of you are lucky. you live in states that allow competitive auto insurance practices. the state sets the rates here. doesnt matter which company you use they all charge the same.

Sensei

Those are four of the top six. The other two are Farmers & Allied/Nationwide.

I'm also pretty sure at least half of the aforementioned Top 6 sell in 49 states and the District of Columbia. That will remain for the foreseeable future as long as the MA department of insurance insists can burying their heads in the sand. Sorry dude.

__________________
Slacking off with style since 1981.

Painted

Could this be considered good news to those of us with multiple accidents and moving violations?

__________________
I came across a nice rack at the department store

host

I have a considerable amount of experience in the area of auto accident claims and in judging the "quality" of the competing, major insurance carriers.

"No fault" is a term reserved for bodily injury claims, not property damage. Some states have laws, where, below a certain monetary threshhold, for the purpose of avoiding lawsuits and protracted negotiations over small dollar amount medical expenses, they are considered "no fault"....your own carrier pays the medical bills, without consideration of who is "at fault".

In the area of first and third party auto collision damage claims, it is my experience that attorneys lack knowledge, or much interest in representing you in the process of getting paid by the driver who has caused the accident.
The reason is because attorneys charge so much, most cases are about small enough amounts, that legal expenses suck the money out of the settlement that you would depend on to repair or replace your vehicle. Lawyers end up having very little experience in this area, they don't like to bother with it, and if a lawyer agrees to help, he has to charge you his standard hourly rate. Even if he got you a $10,000 damage settlement, you cannot afford to give him a third of it, and $3300 won't be enough for his time spent, if your case ends up in court, and it takes too long.

If you are male, especially a single one, and under 25, or up to 30 in some places and circumstances (unmarried, recent traffic offenses, prior collision or claims against your policy by other drivers or their carriers, NO INSURER WANTS YOUR BUSINESS. WAIT UNTIL YOU'VE TURNED 25 to shop for another company.

The best companies, if you're cost conscious, are ones without agents. You're paying foir you agent's business expenses and livelihood. Where else would the money come from? the best company....great service and customer satisfaction....I've been a customer, per Consumer Reports readers survey, is AMICA. They will have a couple of regional offices in your state, you have to be referred by one of their current customers, live in a zip code that they do business in, and they are not cheap upfront, after the year ends, they refund a 20 or 25 percent diviidend.

Obtain the Consumer Reports, annual readers survey of auto insurers, check at your library, or join online at their website. Ratinfs drop off, after AMICA at the top of their survey.

Here is one 2007 survey:
http://www.jdpower.com/finance/ratin...ance/index.asp

The business of insurance and baseball are the only ones in the US exempt from anit-trust regs. Competitors compare notes, all do credit checks, collaborate to set prices of premiums, and, for them, it is not illegal, There is no federal regulation, and state laws vary.

The two largest insurers, State Farm and Allstate, both have agents to sell and service their policies. I would stay away from both of them. GEICO is fine for older drivers, and they just screwed my 24 yr old son, jacked up his premium after he made a relatively small, vandalism damgage, compensation calim....remember FILE NO CLAIMS, except the BIG ONE, maybe once in your life....

USAA does have many satisfied customers, but, at your age, eveyone is treated similarly by every company, especially if you've made a claim. Progressive has a rep of writing policies for people who cannot get insurance from other companies, and they charge accordingly.

If you're over 25, and you are a AAA motor club member, check their website or a local office for rates. If you work for a large employer, ask at your human resources office for afiliated insurers. Search for insurance at www.costco.com if you are a member.

If you want a second opinion, call the largest independent property damage appraisal service, and ask the owner or a key person in the office who they are insured with. If you can get them to admit it, ask who the worst companies that they deal with are.

ALL OF THEM ARE GREAT IF YOU HAVE A CLEAN RECORD AND NEVER MAKE A CLAIM. THEY ALL HATE TO PROCESS AND PAY CLAIMS, and they hate customers who become claimants, and then they want to get rid of you or charge you enough to make back what they paid and future profits.

If you must use an agent, pick multiline, indpendent agent who sells policies for ten or twenty companies. If he's interested in bothering spending the time to find insurance for one, young driver with a blemsihed record, he can offer you a comparison of rates and features of several policies from several companies. Rates are generally lower when stock or bond markets are doing well, because they are influenced by investment returns, as well as by your age, marital status and driving record. Investment return is in a slump for the forseeable future, so there won't be any help, in that regard.

My best advice....DO NOT MAKE ANY CLAIMS for damages to your own vehicle that are less than $5,000.00 if you have any other alternative. If damage is cosmetic and does not involve functionality, and you are partially or fully at fault....do NOT make a collision claim. The money you receive for your claim, is more of a high interest loan, than a payout....you are living the consequences. I am sure that, in hindsight, you would have tried harder to work out privately, who would pay what for your respective damage, if neither of you was ticketed by an investigating officer.

AVOID, when you have a choice...driving in parking lots or on other private property. Do not take that elective, "cut through". Rules of the road and traffic laws, except enforcement of fire lanes and handicapped parking signs,
do not apply, in many places, on non-public roads and lots. This means, in the event of an accident in a parking lot, it is difficult to get blame assigned to the other driver, even if a police person is willing to investigate and write a report. You will most likely have to pay your own damages or file a claim with your own insurer, no matter who is actually to blame.

If you are involved in an accident and you have the good fortune where the other party is found at fault, and is ticketed, or if you confirm that the accident report of the investigating officer determines that the other driver is at fault, make only a third party claim on the other driver's policy. Do not even tell your company, or agent, if there are no injuries involved, you are not at fault, and were not ticketed, that you have been in an accident. Obtain a cooy of the accident report from the police agency, by first asking the investigating officer at the scene, where to obtain it, when, and how much the fee for it will be charged.

When you request a copy of an accident report, request the overlay or code reference sheet, so that you can understand every code/abbrev.on the report

You will not be getting any refund of all or part of your deductible, in my experience, if the accident was partially your fault.

Once you are satisfied that the other driver was ticketed or named as at fault on the accident report....be sure....and there are no injuries to anyone in either car that could turn into a potential claim on your policy, call the other drivers company, ask for auto damage claims and state that you are making a third party damage claim agains their policyholder. Volunteer to hand carry the accident report to their office, if it is feasible and you want to expedite your claim. If the other driver is at fault, and his company is not a "fly by night" insurer, ask on the initial call for rental car coverage, immediately if your vehicle is inoperable or unsafe, billed to them, or, commencing at the time repairs begin.

You will pay no deductible, because you would prevail in a small claims court or a higher civil court suit. The other company, if it cannot defend against your claim because their driver was ticketed or named as responsible in the accident report, wants to settle at minimum expense.

If your car is newer and of high enough value, and you intend to have full repairs made to it, do not accept a "final offer" payment. Choes a repair shop, if it is a larger one, they can even guide you in the thurd party claims process. They prefer third party claims, because there are no deductibles to be harangued over, by claimants wishing to avoid paying them. If your goal is a full repair, it does not matter what the initial damage apparaisal amount is. Simply get a commitment from your repair shop to do the work as described on the appraisers damage report, at no out of pocket cost to you. Hidden, addtional damage, cost of additional parts and labor, and other items missed by the appraiser representing the other driver's insurer, will be paid for in a supplemental billing by that insurer.

Make sure your repaier repairer agrees, before repairs commence, to release your vehicle to you when you are satisfied that repairs are complete, for only the amount you have initially been paid by the insurere, Sign an authorization for the insurere to pay the repairer directly for any addtional amounts, or for the entire cost of repair, for that matter. The repairer will call the appraiser for any addtional inspection of your vehicle during repairs.

If someone else damged your car, this is the best way to deal with it. If you file any claim with your own company, expect to pay your deductible, at least initially, a portion of your rental car expense, and risk having a claim on your "record". Refrain from making any small auto or homeowner claim. Insureres even track addresses for claims experience ratings. Check the claims activity on an address before you buy the property, it could affect your policy rate.

....and get yourself married and over age 30, with no claims or traffic tickets, ASAP. Otherwise, no matter how indignant you may feel, you have little or no bargaining power.

Shauk

http://www.amfam.com/ if you're looking to switch.

Unbelievable rates. I get full coverage on a newer 2d coupe for what my old insurance company (Progressive) charged for liability only on a 10 year old car.

thingstodo

I am no expert but I beg to differ unless I misunderstood you. I define bodily injury as happening to a person as in medical, property to something outside the car and comprehensive/collision as the actual car.

No Fault in MI means your insurance company pays for damage to your car (as in collision), regardless of who is at fault. If you are sitting on the side of the road and someone slams into you, your insurance pays for your car. You pay a deductable unless you purchase the broad form coverage which then takes car of your deductable AS LONG AS you are less than 50% at fault.

Although I was never involved in an accident in FL, another no fault state, I'm, pretty sure the same thing applies there as well.

__________________
If you're wringing your hands you can't roll up your shirt sleeves.

Stangers have the best candy.

The_Jazz

host, thingstodo is right. "No Fault" is a specific term used in certain states. It's been misused a lot in this thread, but thingstodo has the right definition. host, you've described "Medical Payments" coverage on the GL form, and I know that there's a corresponding coverage on the Auto form, but I can't remember the name at the moment.

And "Bodily Injury" is "bodily injury, sickness or disease sustained by a person, including death resulting for any of these at any time" on the General Liability form. I don't have an Auto form handy, but I expect that the language is going to be very similar if not identical.

As for the rest of this thread, there's a lot of misinformation floating through it. I don't have the time or inclination to disprove all the errors, but suffice it to say that any insurance buyer needs to read their policy and understand their duties in claim reporting. Failure to report claims in a timely manner can leave you with no coverage since the insurer will have no duty to defend you. You can notify any insurance company for "record only" and let them know you will fix the car yourself. Every state gives you that right, and by notifying them you've protected yourself against what the other driver is going to do.

__________________
"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin
"There ought to be limits to freedom." - George W. Bush
"We have met the enemy and he is us." - Pogo

blktour

So update:

I called USAA and they said that they are rating me correctly. The rep over the phone said that she sent it to two different under writers ( or whatever you call them.) and they said that they charged me correctly.

So I went shopping around to ALLSTATE, STATE FARM, GEICO, PROGRESSIVE, and ALL of them and i mean ALL of them offered me $150 cheaper than USAA. I asked how much with my driving record without the accident, and i got about $140, but with the backing up incident, it shot up to $230 ( that being the highest through progressive.)

these were all with my driving record pulled. not just an estimate.

so in the end I called them back and told them that I would be going to Geico, that is going to charge me $204 with my accident.
Same coverage.

They are good, and nice, and the insurance, i have read it all since I came from them to USAA in the first place.

MY main thing that I pointed out the the rep over the phone was that I had been paying for some time now every month of about $180/mo and then one accident it shot up to $2377 for 6 months. the accident alone total with both parties was about $2400 so in 6 months I will pay for both accidents in full, and then they wont even count the other payments every month that I was paying them?

That just got me.

Now I am not up on the insurance stuff and i know that it is a business but come on. you are taking money from me every month and when I do get in an accident, I STILL GET charged more?

so knowing and understanding this is a business, I just packed up all my money of car insurance, and all my savings and checkings money and went to Bank of America.

I just think that if they werent so "greedy" ( in my eyes is how i see it. ) that they could keep my money in their bank and make money off of it, and still charged me at least on insurance $250 every 6 months. they were still getting paid. but no. they wont get a thing from me.

they didnt give me the "pickle."

at my job, ( work in customer service. ) I have rules. but to satisfy a customer I will break the rules to make them happy. especially an escalated customer.

I gave her a chance. and she didnt bite. oh well. Now I feel better about myself and how I treat my customers, and try to help them out, and save them money.

Cynthetiq

interesting....

I just did a look up on progressive.com just to see if I'd get a better rate than Geico. not really, but I did learn something I didn't realize is that credit scores affect insurance rates. I guess those people who live on credit are also considered higher risks for accidents. I don't understand the correllation but whatever, I don't have bad credit.

Good for you on saving some money... no reason to just give it away without a fight.

__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

The_Jazz

Cyn - part of the reason they look at credit (and only a part, mind you) is that poor credit can be an indicator for insurance fraud. That's not to say that everyone with bad credit is a fraudster, just that fraudsters tend to have bad credit.

Interestingly enough, this holds true for commercial insurance as well as personal.

__________________
"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin
"There ought to be limits to freedom." - George W. Bush
"We have met the enemy and he is us." - Pogo

TotalMILF

Copycat.

__________________
"I'm sorry, all I heard was blah blah blah, I'm a dirty tramp."

thingstodo

Even more than that, how you handle credit demonstrates how you handle things in general. It is used in all insurance coverage - life, medical and home owners.

__________________
If you're wringing your hands you can't roll up your shirt sleeves.

Stangers have the best candy.

Cynthetiq

true.

even landlords and employers run credit checks.

__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

blktour

new UPDATE:

So I just got an email from the lady that I was working with at USAA and she had some new rates that she said that just came around for thier fiscal year, and she re-ran my information to give me a quote and the quote is $838 for 6 months.

So would it be bad to change back or is that just greedy or wrong?

what would you all do?

i know I have to read the fine prints and all but if all comes out good and clean, do you all think i should do it?

I just feel somewhat bad for jumping back and forth. ( I know I am odd like that. )

thingstodo

Business is business. However, sometimes the more you switch things like this the more it impacts your credit rating because every time someone checks your credit it has an impact on your score for a period of time.

I can't really say since I don't know how much you're saving. If their rates are still good a year from now perhaps it would be worth changing.

Another way to save a lot of cash is to save up and pay the entire 6-month premium at one time. You'll usually save 25% of the premium by doing that. It might hurt for six months but once you've saved up you'll always be paying in full and then saving much less each month instead of giving a lot to the insurance company as virtual interest.

__________________
If you're wringing your hands you can't roll up your shirt sleeves.

Stangers have the best candy.

blktour

about the credit issue. well my credit is really high, so I wonder how much it would hurt it by.

well i would be moving from $204 to $139/mo and I asked about paying the full 6 month term and both insurance companies that I asked do not give you a discount for that.

host

My advice:

If your new insurer does not levy a large cancellation fee, switch back to USAA ASAP, but "pay" the money you save in cost of premiums into an account intended to cushion you against any future, unplanned mishaps, i.e., the potential of making another auto insurance claim. Consider using the money you accumulate to mitigate the risk of changing your collision/comprehensive deductible amount, say, from $500 to $1,000; a change that should lower your premium further.

blktour

So what you're saying is if Geico doesnt charge any cancellation fees then go back to USAA, and then if i am going from $204 to $139, i should pay the $204 x6 to USAA to cover me?

that sounds like a good idea.

any other advice before I do the "leap" again?

The_Jazz

It is illegal for an admitted insurance company (and all states require that personal auto be written by admitted carriers) to have any sort of minimum earned premium. That means that you can cancel the coverage the day after binding coverage and not have to pay an exorbitant fee.

That does not mean that you will necessarily get a prorated return premium. You could get a "short rate" return, which means that it is the prorated premium minus a percentage (typically 10% but possibly as much as 20%). It may not be spelled out in the policy wording, but they have to disclose it if you ask.

So ask Geico and see what they say.

__________________
"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin
"There ought to be limits to freedom." - George W. Bush
"We have met the enemy and he is us." - Pogo

Cynthetiq

I believe host is suggesting that YOU save the difference in a bank account, coffee can, or mattress whichever you feel most comfortable with.


If you take the $65 and save it, after 1 year you should have $780, after 2 ears $1596, etc. If you have to make another claim in 3 years, you are better off paying it with those funds.

As far as impact to your credit, if you are buying a house in the near future, it may make a difference since it will immediately impact your FICO in some fashion.

__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

thingstodo

First, your credit can never be "really high" unless you've had GREAT credit for many years along with a good income, stable employment and managable debt. Your credit score is reduced a little every time your credit is checked. You just switched companies which means it has been checked at least twice.

On another note, it is difficult to believe that any company would charge you the same whether you paid the premium monthly or on a periodic basis. Financing is going on in some fashion. Progressive does it that way, GIECO did when I had them as well as Allstate. But perhaps I'm wrong.

__________________
If you're wringing your hands you can't roll up your shirt sleeves.

Stangers have the best candy.

blktour

well my credit score is Really high for my age. I wanted to get a home last year and it came out at 793. I dont know how but it did.

So I can't really complain with that.

how much is it reduced by?

So I have a score of 793 and then I have someone check my credit and then it goes to what? given that nothing else changes on my credit?

As far as USAA and GEICO; they do NOT give me a discount for paying early. I asked two different reps at both places.

So are they lying to me?

Cynthetiq

I dunno how many points it goes down for the inquiry. 2 inquiries are the cost.

No discount for paying early? Interesting, Allstate and Geico both have printed information on my bill at the beginning of the year that tell me how much I save if I pre-pay for the year. Maybe I'm confusing something on the geico bill. I'll have to look again.

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Rekna

I think you guys are wrong about credit checks hurting your score.

Yes credit checks followed by denials hurt your scores but these companies do a different type of credit check which doesn't hurt your score.

I found some info on the credit scores

http://www.myfico.com/CreditEducatio...Inquiries.aspx

thingstodo

Rekna...your note clearly states that:

* Inquiries that count toward your FICO score.
There is only one type of credit inquiry that counts toward your FICO score. When you apply for a mortgage, auto loan or other credit, you authorize the lender to request a copy of your credit report. These types of inquiries, prompted by your own actions, appear on your credit report and are included in your FICO score.

Insurance companies are giving you credit when they give you insurance. That's how the industry works. The inquiries that don't count are all passive and you can even stop most of them with a fraud alert which also cuts down on the credit offers you receive in the mail.

A credit check with a denial is still just a check. If they deny you've already got problems!

__________________
If you're wringing your hands you can't roll up your shirt sleeves.

Stangers have the best candy.

Rekna

They are not giving you credit. In fact most insurance agencies just started doing credit checks. I have looked at my credit report recently and the insurance credit checks were under the section of checks that do not affect credit.