Why Car Insurance Is So Expensive...

[Geo]

OK, so I'm stopped at a light and this young lady bumps into me. The only "damage" are two barely noticible indentations from her license plates. I mean you can't see them.

I took the car into a insurance inspector at a body shop just to be sure that there was nothing else that I may have missed and to document the damage. The insurance person checked everything and said that to fix it it would be $400. But after she left the body shop guy told me that if I wanted I could get a new bumper and "stick it" to the other insurance company and the young lady.

Guys, there is nothing wrong with the bumper. Two little marks that almost can't be seen. I'm not the most honrable guy out there but I'm not going screw the other person over.

If you wonder why insurance rates are so high its partly because dishonest people and dishonest shops out there.

Geo

[lenore]

Hey Geo, I am with you, that was very commendable of you, Yes the bad claims hurt us all. Being a male and paying insurance for 37 years I hate the rates, and the really wonderful thing is it is hard to switch companies after you have been with one for years, No one seems to be competitive for that type insurer. I have tried and not once have been quoted a lower price with the same coverages. Interesting industry that is both abused and puts it to us honest people.

[sovietlexus]

u shoulda gotten the new bumper......i think its worth the 4000 a year for insurance in brooklyn anyway

[Toysrme]

You 'fed up. Get a new bumper.

Even at a young age, the first time isn't going to impact the insurance rate.

if it was her first time, no harm, no foul. if she does it all the time, they're going to teach her one way or another to pay attention.

[yes250]

Here's the problem: Get a new bumper and you are 'involved' in an accident. Your rates go up. You are the one getting it stuck to as well as the lady who bumped you. The body shop and 'inspector' make a small fortune off you.

I have people bump me all the time. Big deal. So there're a couple of little battle scars on your bumper.

It's a great way to pick up chicks too, if you are man enough to forgive them for a little tap. It's how I met my wife.

[steviej]

Here's the problem: Get a new bumper and you are 'involved' in an accident. Your rates go up. You are the one getting it stuck to as well as the lady who bumped you.

not true.

He was stopped at a light and the lady bumped into him. Talk to the insurance company. He was not even in motion, they will/should waive the deductible his rates will not go up.

been through this scenario.

steviej

[EdMcK515]

Glad to see there are some honest people out there. While your rates woiuldn't immediately go up, if people kept making claims like this everyone is going to have to pay. It's like how half my neighborhood got their siding replaced after a non-existent hail strom with the insurance company footing the bill to send to the same contractor.

[monarch]

I agree with yes250 that it's self defeating to file a claim for minor bumps or other minor issues regardless of who was at fault. The secret to obtain the lowest possible insurance rates is to not have ANY claims or accident history on your record for 5+ consecutive years or more. This can mean, in the case of minor collisions, working with the other party involved to pay for the damage out of pocket and thus avoid filing police accident reports and avoiding all contact with the insurance carriers altogether. I'd rather pay a body shop $400 out of pocket for a one time minor incident than risk soaring insurance rates and the associated risk of policy cancellation.

[LEXIRX330]

Here's the problem: Get a new bumper and you are 'involved' in an accident. Your rates go up. You are the one getting it stuck to as well as the lady who bumped you.

not true.

He was stopped at a light and the lady bumped into him. Talk to the insurance company. He was not even in motion, they will/should waive the deductible his rates will not go up.

been through this scenario.

steviej

Different states have different laws regarding this!

In MD if the same thing happened and you file that claim on your own policy...it is considered a not at fault accident. State law says that a insurance company can not surcharge you for a not at fault accident. But you can lose discounts (claim free discount) different companies work diffent ways too. There are quite a few insurance companies that if you are getting a quote from that actually charge more for a not at fault accident than a at fault accident. It doesn't seem right?

I can say this much for sure. I write insurance in MD, DE, and VA...and on my own policy there is no way that I would file a claim other than a comp claim for under $1,000.

[mburnickas]

I agree with yes250 that it's self defeating to file a claim for minor bumps or other minor issues regardless of who was at fault. The secret to obtain the lowest possible insurance rates is to not have ANY claims or accident history on your record for 5+ consecutive years or more. This can mean, in the case of minor collisions, working with the other party involved to pay for the damage out of pocket and thus avoid filing police accident reports and avoiding all contact with the insurance carriers altogether. I'd rather pay a body shop $400 out of pocket for a one time minor incident than risk soaring insurance rates and the associated risk of policy cancellation.

If someone hits me, I file a claim and it does not effect my rate at all. Their rate goes up, not mine.

[SW03ES]

I agree with yes250 that it's self defeating to file a claim for minor bumps or other minor issues regardless of who was at fault. The secret to obtain the lowest possible insurance rates is to not have ANY claims or accident history on your record for 5+ consecutive years or more. This can mean, in the case of minor collisions, working with the other party involved to pay for the damage out of pocket and thus avoid filing police accident reports and avoiding all contact with the insurance carriers altogether. I'd rather pay a body shop $400 out of pocket for a one time minor incident than risk soaring insurance rates and the associated risk of policy cancellation.

I agree, there's no way I'd file a claim for anything less than $1500 or so.

Thats probably true of most people actually, and most people are over-insured thats why their insurance rates are so damn high. If you KNOW that you would never file a claim for something over $1500...then why have a $500 deductible?

[LEXIRX330]

I agree with yes250 that it's self defeating to file a claim for minor bumps or other minor issues regardless of who was at fault. The secret to obtain the lowest possible insurance rates is to not have ANY claims or accident history on your record for 5+ consecutive years or more. This can mean, in the case of minor collisions, working with the other party involved to pay for the damage out of pocket and thus avoid filing police accident reports and avoiding all contact with the insurance carriers altogether. I'd rather pay a body shop $400 out of pocket for a one time minor incident than risk soaring insurance rates and the associated risk of policy cancellation.

If someone hits me, I file a claim and it does not effect my rate at all. Their rate goes up, not mine.

If you file it on their policy, that is true. If you file that claim on your own policy and your insurance company can not collect the money from the other insured's company (word vs word) then you may now have a not at fault accident on you and you can lose some of the current discounts that you have. Which will cause your rate to go up. It is not to your advantage to file any claim agianst your own policy if it can be helped...

[mburnickas]

If you file it on their policy, that is true. If you file that claim on your own policy and your insurance company can not collect the money from the other insured's company (word vs word) then you may now have a not at fault accident on you and you can lose some of the current discounts that you have. Which will cause your rate to go up. It is not to your advantage to file any claim agianst your own policy if it can be helped...

You pay for insurance for a reason. It is like home owners I pay for. I had a leak in my roof, I made a claim and they fixed it. Did not effect my rate.

Also why would I file a claim with my insurance since it was not my fault? I go after the clown that hit me. If someone hits me I look at the damage and ask if they want to pay for it. If I am hurt, too bad, your loss. If you (the person who hit me) is a jerk, not moving my car.

There is not clear-cut answer on what can go up etc. If one accident causes my rate to go up, I move insurance places and that is everything I have insurance on [house, cars, bike, tractor etc).

One thing is clear insurance is a took scam..My wife worked in insurance..It is like taxes, health care. It is not gonna change. Also to throw something into the loop. I know people that got into accidents and both had the same insurance people...BONG!

Nevermind the people in body shops that can make the price double if it is for an insurance place.

[areitu]

I bumped into a lady once and it left no mark on her RX300.

She wanted a new bumper anyway. :( Ended up forking over like $1000 to avoid it ending up on insurance.

[indiasfinest]

thats ridiculous, how could she prove that you hit her?