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  #11  
Old May 19th, 2017
johns331 johns331 is offline
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Originally Posted by Clobber View Post
One of the biggest things that affects your insurance rates also is your credit report and how long you've been with the same insurer.


Source: Consumer Reports


A couple of interesting blurbs from Consumer Reports:

MYTH: You Get a Loyalty Discount for Staying With the Same Company a Long Time

HIDDEN TRUTH: You might actually be charged a loyalty penalty

Many companies, including car insurers, reward their most loyal customers with discounts or other incentives. Itís a smart business model. But our study found that while some insurers give a sizable discount, others give a small one, and still others offer nothing at all. Some insurers even salute your allegiance with a price hike.

Itís common for consumers to stay with the same insurance company for a long time. Fifty-three percent of Consumer Reports subscribers have stayed put for 15 years or more, according to our most recent survey. But that kind of complacency can cost you. In Washington State, for example, seven of 15 insurers didnít give a discount to our married couples who had been steadfast customers for at least 15 years, including Amica Mutual and Farmers.

Trusted name brands were no guarantee of anything: In Washington, State Farm Fire & Casualty offered no discount; State Farm Mutual provided $182, or 15 percent in savings. Geico General and Geico Government Employees didnít offer a discount; Geico Casualty actually charged a $689 loyalty penalty, or 17 percent.

Discounts also varied by state. USAA offered a nice savings of $197 in Kentucky but a meager $14 loyalty discount in Washington, nothing in Colorado and Michigan, and a $28 loyalty penalty in New York.

Geico Casualty gave us whiplash with its $3,267 loyalty penalty in New Jersey and its $888 discount just across the state line in New York for longtime customers. State Farm Mutual consistently provided discounts of a couple of dollars up to a few hundred dollars; Allstate Fire and Casualty and Allstate Property & Casualty tended to prefer penalties.

----------------------------


How your credit score raises your premium

Your score is used to measure your creditworthinessóthe likelihood that youíll pay back a loan or credit-card debt. But you might not know that car insurers are also rifling through your credit files to do something completely different: to predict the odds that youíll file a claim. And if they think that your credit isnít up to their highest standard, they will charge you more, even if you have never had an accident, our price data show.

Cherry-picking about 30 of almost 130 elements in a credit report, each insurer creates a proprietary score thatís very different from the FICO score you might be familiar with, so that one canít be used to guess the other reliably.

The increase in your premium can be significant. Our single drivers who had merely good scores paid $68 to $526 more per year, on average, than similar drivers with the best scores, depending on the state they called home.

And your credit score could have more of an impact on your premium price than any other factor. For our single drivers in Kansas, for instance, one moving violation would increase their premium by $122 per year, on average. But a score that was considered just good would boost it by $233, even if they had a flawless driving record. A poor credit score could add $1,301 to their premium, on average.
USAA just raised my premium a little over $100 per 6 months. Been with them about 15 years, no tickets and no accidents. When I called them on this, they said it was the state of Louisiana that was causing the premiums to go up. I'm paying more in Louisiana than I did in California for the exact same coverage.
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  #12  
Old May 19th, 2017
Zak Zak is offline
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Originally Posted by johns331 View Post
USAA just raised my premium a little over $100 per 6 months. Been with them about 15 years, no tickets and no accidents. When I called them on this, they said it was the state of Louisiana that was causing the premiums to go up. I'm paying more in Louisiana than I did in California for the exact same coverage.
I love USAA but I'm not buying their response. The state applies the points, it's up to the insurance company if they are going to raise your rate. I will agree though the some states have more expensive insurance rate because of the number of claims and requirements for no fault insurance.
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Old June 12th, 2017
webbrowan webbrowan is offline
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I should hope that the message here is not about buying a radar and learning to stay ahead of the police guys lurking in the bushes, but for more people to learn to control their speed demon inside. I mean, of course once in a while we'll cross the legal limit, but we shouldn't be travelling at speeds that are so above the mark that we would get seriously penalised for them. I'm sure police close an eye to people who are towing the line...
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  #14  
Old June 12th, 2017
Zak Zak is offline
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One of the factors they didn't include in that study was most times your insurance rate is most effected by the state you live in and their laws. For instance in Florida they have "no fault" insurance that I find ridiculous. If you have auto insurance in Florida and are riding in someone else's car (you're not driving you're car) and they have an accident guess who pays your injuries? Not the drivers insurance of the other car, not the drivers insurance of the car your in, your insurance company does.

That's why when I spoke with USAA they told me that because FL is a high claim state (people file claims like its going out of style) and because they also have no fault it is one of the highest auto insurance rates in the US. Higher then NYC or DC. She told me that if I lived just 10 miles north on the other side of the GA border my insurance rate would be 40% lower.
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