Okay, I'm ticked. I just received my new policy renewal for my auto insurance. My premiums have increased $200. This is the catch. My husband and I have two cars (we each purchased them before we were married - so only one name appears on each). We also have our own insurance policies (his State Farm, mine Erie). Last year I paid $580 for 12 months - full coverage. This year $780. Quite an increase. I was looking over the renewal information and I noticed that they have "owned and driven by married male age 23". Well, I am married female age 24. So I contacted the insurance company about this. They told me it was based on my husband since he is on my insurance policy as a driver. It's not his car or his insurance policy - so why does he influence my premiums? Here is the thing that really ticks me off. Erie will reduce rates when the policyholder becomes 24 (the industry average is 25 years of age). So my insurance policy should have gone down 15% from last year's policy, but because my husband is under 24 (although he doesn't own the car or policy) my premiums have gone up instead. It's a no win situation, unless I move his car to my policy - savings of 25% (insurance reps advice, not mine). Would it be cheaper for my husband and I to move both vehicles to the same policy? Yes. But, I don't think it's fair that they are basing his age, and gender on my insurance policy. Any ideas? Dani PS I know my insurance is cheap compared to others my age, but it's the whole principle of the matter. Thanks.
Dani, Some battles you just can't win and this is one of 'em. Discounts for multi-coverage is always cheaper. Just wait until you 2 have a 16 year old kid with an drivers liscense and you open up that letter from the insurance company!
Dani, I don't think most auto ins. companies do it the way yours is (using his age). I would get some quotes from other companies (watch out for the inquiries). Also, is there a reason you don't want a combined policy? you should be able to save money with a multi-car discount and one police compared to two separate policies.
since progressive is (progressive!) they will allow you to have two non-married people living together to be partnered to enjoy the multi car discount (AAA discount) But since both members are likely to drive both cars at some point in their life, they take the highest rated driver, and place it on the highest rated car. So i basically get screwed with my audi and my gf's younger age Oh well theres no way to win with insurance!!
Yes, all companies do this. He must be listed on your policy and you must be listed on his. Then the highest rated driver determines the premium, regardless of whether that driver is the primary driver of that vehicle. If you try to get a quote without him on your policy, your rate will go even higher, because married status with no spouse listed as driver means "separated or divorced," which is a different rating category (higher). I know, I know. Get both companies to give you a quote on a combined policy - multi vehicle discount is a nice discount. When it come to insurance, you can't have it your way. I've been an agent for a lonnnnnnnng time. They're not gonna change this, and nobody is going to make them, no matter what we think (I agree with you - I once had to have a roommate listed on my policy).
Thanks everyone for your responses. I have no problem with a multi car policy - it would be significantly cheaper. I just felt it was unfair that I was penalized because my husband (happens to be a male under 24). What I was going to do was wait until next month (when he turns 24) and have Erie renew the policy..making it even cheaper. Oh, well guess you can't win all the time. Dani PS I have compared prices - State Farm is significantly more compared to Erie. Allstate, Progressive, and Nationwide is not even close.
My fiance is listed on my policy as a licensed driver who resides in the same house, but I am the only one listed as a driver of my vehicle. I have obtained other quotes the same exact way as well as quotes without him listed at all, and the premium is identical. Just because he is listed as a licensed driver does not mean that he is factored into my premium.
That's different - to the insurance company. He is being treated like a roommate. A spouse is not treated the same way. If you live with someone - not married - and they have their own vehicle and insurance, they are not included in the rating procedure. If it is your spouse, they are included. If they don't have their own vehicle and insurance, they are included.
JOB OF INSURANCE COMPANIES... 1) COLLECT $$$$$$$$ 2) COLLECT $$$$$$$$ 3) COLLECT $$$$$$$$ 4) DON'T LIKE ANSWERS 1 & 2...SEE ANSWER # 3!!!
I have no specific advice on your situation.. but may I suggest Planet Feedback? Couldn't hurt.. threaten to switch to another insurance company if you aren't give better rates because you have been a customer for xx years.. and a good one if that (if its true of course)
Actually, this might work if you have been with them a long time and have a good record - GEICO has "retention" department. You get mad and say you are going to change companies - bingo!! call goes to "R."
I thought I remembered reading somewhere that Geico doesn't use your credit reports. Don't quote me on that but it might be an avenue to explore.
I saw a matrix of states where they do not pull credit a couple of days ago - I recall California is one - however, CA insurance is a mess right now because of Prop. 103. I will try to jot down which other states they do not pull credit at all. I was the one who said they will not pull credit if you say no. In a conversation about pulling credit a few days ago, some of the other agents there said they don't wait for you to answer "yes" or "no," they just do it. Most states only require verbal notification, they don't require permission. So, If you call for a quote make it clear before they ever get to that part (The best time is when they ask your SSN) that you do NOT want credit pulled. In that case, they are not allowed to pull it (company policy). Refusing to give your SSN will not prevent pulling credit. They can pull with name and DOB. But when they ask your SSN, it is a reminder to say "I do not want you to check my credit." The conversation came about because someone had had a customer get into a big argument about it. The agents were saying the best way to avoid that is not to wait - just click OK. It is true that people get very combatice sometimes, even when I tell the no problem, we won't do that. They still want to fight about it. That's how strong the feeling is about it. Interestingly enough, I have heard higher-ups comment that the company does not want to use it, but they are forced to because the competition is using it. Others have admantly defended credit as an accurate predictor of risk. After reading through some industry statistics re claims and losses (and I don't mean 9-11 claims) I have to suggest that there is another reason, LOL. Credit has not been that accurate.
If I all of a sudden decided to NEVER pay another bill, my score would be in the 500's or even 400's...BUT I WOULD STILL HAVE NO TICKETS SINCE 1983!!! AND STILL NO ACCIDENTS, EVER!!! BECAUSE I HAVE A SCORE OF SAY 432...DO I START DRIVING BAD???? DO I HAVE 4 OR 5 TICKETS AND 2 ACCIDENTS??? NO WAY!!!!!!!!!
