Good news on insurance
Registered User
Joined: Aug 2002
Posts: 1,025
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From: Raleigh, NC
Thanks, Baven. You have proven yourself NOT to be a lunatic and validated my experience:
The "unlucky" clause is unreasonable and unfair and should be foiled at every opportunity. Never notify your InsCo unless you need them to pay out, it can only do you harm. If they don't like that f*ck 'em, there's plenty more out there clamoring for your business.
(My experience, when I was young and didn't know any better, was that the people in the InsCo gave me this reaction of "Why did you tell me that? Now I am obligated to act on it against your best interests!")
The "unlucky" clause is unreasonable and unfair and should be foiled at every opportunity. Never notify your InsCo unless you need them to pay out, it can only do you harm. If they don't like that f*ck 'em, there's plenty more out there clamoring for your business.
(My experience, when I was young and didn't know any better, was that the people in the InsCo gave me this reaction of "Why did you tell me that? Now I am obligated to act on it against your best interests!")
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Posts: n/a
Actually, there is no "unlucky" clause in the insurance contract. The insurance contract simply requires that you report all "losses" and that means losses to your vehicle, not losses to the insurance company.
What baven is referring to is the insurance company's underwriting practices. Many insurance companies will tell you that someone who has had a large number of "losses" is more likely to have more losses in the future and therefore is a higher risk than someone who has not had such losses.
Generally, this does not result in a non-renewal, but could result in a rate increase. Keep in mind that not all insurance companies use the same rating criteria. Baven's company apparently has very strict underwriting rules based on his prior posts.
Regarding not informing your insurance company of a loss, of course there is nothing to force you to do so, however, you should be aware of the potential risk you are taking under those circumstances. The contractual requirement may also have a time frame stipulated. I would prefer to let people know that there is a risk involved than to recommend that they not contact their insurance carrier.
What criteria do you use to determine whether or not to report a loss? You could jeopardize your coverage at a time when you really need it. It's a choice you have to make but at least make it an informed choice.
What baven is referring to is the insurance company's underwriting practices. Many insurance companies will tell you that someone who has had a large number of "losses" is more likely to have more losses in the future and therefore is a higher risk than someone who has not had such losses.
Generally, this does not result in a non-renewal, but could result in a rate increase. Keep in mind that not all insurance companies use the same rating criteria. Baven's company apparently has very strict underwriting rules based on his prior posts.
Regarding not informing your insurance company of a loss, of course there is nothing to force you to do so, however, you should be aware of the potential risk you are taking under those circumstances. The contractual requirement may also have a time frame stipulated. I would prefer to let people know that there is a risk involved than to recommend that they not contact their insurance carrier.
What criteria do you use to determine whether or not to report a loss? You could jeopardize your coverage at a time when you really need it. It's a choice you have to make but at least make it an informed choice.
Registered User
Joined: Aug 2002
Posts: 86
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From: Philadelphia
It couldn't really jeopardize your coverage instantly. The worst case scenario is the insurance co. finds out and for some reason has a major problem with it, which would likely result from a suprise claim for big $$$ from an incident they had no idea about that happened a week ago.
Even if that did happen the worst case is you get the accident/claim on your record and when your policy is up for renewal they will simply opt not to renew. They cannot instantly cancel your rates, at least not in the Northeast area.
Thats the risk, those are the benefits, its your choice. I just get sick of watching almost every insurance co. out there screwing people because of statistics and a good reason to charge more
Even if that did happen the worst case is you get the accident/claim on your record and when your policy is up for renewal they will simply opt not to renew. They cannot instantly cancel your rates, at least not in the Northeast area.
Thats the risk, those are the benefits, its your choice. I just get sick of watching almost every insurance co. out there screwing people because of statistics and a good reason to charge more
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Originally posted by baven
Thats the risk, those are the benefits, its your choice. I just get sick of watching almost every insurance co. out there screwing people because of statistics and a good reason to charge more
Thats the risk, those are the benefits, its your choice. I just get sick of watching almost every insurance co. out there screwing people because of statistics and a good reason to charge more
Like the claim I received years ago where our insured's daughter never told her father about the accident she had caused so it never got reported. She figured, the other guy was real nice and told her no problem, she could take care of it herself. Two years later, the other party filed suit against our insured.
Insurance is there to protect you and your premiums pay for the service of the claims department.
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