I hate my Insurance company

[calf]

Ok, I have this problem with my insurance company, so I'll ask the experts.

I bought a new car about 6 months ago. After shopping around, I decided to go with my parent's company since a) it's cheaper and B) i get better coverage as it's under their "umbrella" (still living at home).

Still, I was given an expensive quote back then, despite the fact that I have a clean record, have a good student discount, drivers ed etc - everything that I can have going for me. I knew this was the best I could get, so I sucked it up and took it.

I guess it also doesn't help that I'm under 25 and am male, but that's a whole other issue.

Nothing has happened in the last 6 months - nothing. But, I get this notice today saying my car's been "reclassed", so my bill's going up by a marginal amount (not tons, but enough).

I'll be calling my guy tomorrow, but my question is this: can they seriously do this, and do it on short notice (the new premium goes into effect in about 2 weeks)? Any other advice?

[JiriHrdina]

My brother in law worked for years in the insurance business. The only advice he offered me was that every few years you should shop your insurance around and get some quotes. Chances are that you will see some savings. Not huge, but every bit helps.

Maybe now is the right time to do a little shopping?

Besides that - not much you can do.

[AaronSJ]

Originally posted by calf@Aug 26 2004, 12:33 AM
I'll be calling my guy tomorrow, but my question is this: can they seriously do this, and do it on short notice (the new premium goes into effect in about 2 weeks)? Any other advice?
Check your "contract" (i.e. the thick set of documents you received) and see what it says. Generally, insurance companies must wait until the end of the term specified in their contract, which is often six months, before adjusting your rates (which seems about right, based on what you said).

If you're unhappy with this, it might be a good time to shop around and perhaps visit a broker. However, as a male, under 25, with a new car, you're just not going to get a great rate. Just do whatever you can to keep a clean driving record (including any "comprehensive" claims) and things will eventually become better. I think my insurance dropped by 40% when I turned 25....

[calf]

Thanks for the help.

I realize that they're the insurance company, and based on who I am, they'll charge me more. Whatever. It just seems like on the notice they came up with a bs excuse (changing car class?) to charge more.

Would this also not qualify as a premium hike, when there's a rate freeze in Alberta? Or because the contract expired, then got renewed, does it not count?

[Eagle Eye]

Isn't there supposed to be some kind of rate reduction this fall? I think I heard that most people will only get approx a 5-10% reduction but younger males will get the greatest reduction.

Anyone else heard this?

[calf]

Just talked to my insurance guy - they're saying that the major overhaul should be announced October 1 - but when that gets implemented in their system is another story. Saying that since I have everything going for me, I should see a decent decrease (won't give me numbers since they really don't know).

Also decent news: Once I turn 21 in October, my premiums will see a very good decrease (that, they promised me).

Regarding why it went up: because it's an '04, they rated it based on the price of the car since they had no claims against that model yet, so once there have been a few claims, they adjusted it based on the risk etc. Makes sense, I guess.

[Eagle Eye]

Yes at age 21 there is a decrease but the major decreases occur at 25 and when you get married

[troutman]

Draft Regulations Devastate the Rights of Injured Albertans :

http://www.actla.com/otherfiles/News%20Rel...-April26-04.htm (http://www.actla.com/otherfiles/News%20Release-April26-04.htm)

Despite the billions in insurer profits last year, based on the new draft regulations, it appears that government has forgotten why Albertans have and need insurance.

Albertans are urged to immediately contact their MLA before these regulations become finalized.

[Cowboy]

Well, Well, I work for the Insurance industry. It is not normal for them to raise your insurance in the middle of the year. I would speak them. You agreed on a quote for a 1 year term, thus signing a contract. I have never heard of this before and I know my company does not do that.

As for the rate reduction. Well if you are under 25 (which I am) your insurance will go down, but if you are over 25 it will go up (for the most part). This was all decided by the "do it, because we need results" Ralph Klein government. The kicker is, is the Average person will save $12.50, My insurance will go up under the new grid system. My company is nice enough to keep on the old system (not all company's will do this.