NLIC.org

Christina Said:

will my car insurance premium increase if others car crashed into my car?

We Answered:

It should not if it was not your fault.

Lisa Said:

Will my car insurance premium increase -- although I have not made a claim for a recent accident ?

We Answered:

Let me try and clear this up for you.

Although you did not make a claim for your damages the other person did make a claim for their damages and it was probably your insurance company that paid for their damages (as you were at fault)

Any insurance company you go to you would have to inform them that you were involved in a "fault" claim and i imagine that this would have also resulted in you losing your no claims bonus? so you would also have to advise them of the correct number of years no claims bonus you had (you may be lucky if you have 1 year - the company may put you back to nil!)

I hope this helps you.

Alexander Said:

Why did my car insurance premium increase?

We Answered:

Stop switching insurers and STOP shopping on PRICE.

Every time you switch, you start over having to re-earn claim free discounts. The longer you're with an insurer, the better your discounts.

Also, in many states there are rules about cancellations. The longer you're with an insurer, the harder it is to cancel you, by law. You may be accident and ticket free now, with a great credit rating, but if and when something happens, any insurer you've been with for less than 3 years can drop you like a hot potato!

In Georgia, if you've been insured for over 3 years continuously, you'd need over 3 claims/tickets/occurrences to be dropped. Otherwise, first claim or ticket within the first year, it could be bye-bye and perfectly legal!

Many insurance companies will low ball you in the beginning to get you in the door, then you're hit with the next level of pricing. You think you're outsmarting them by switching, but when you do, you've shot yourself in the foot. If you would have waited, you're premiums would level out and eventually, you'll be paying less than your neighbors, have better coverage, many more discounts and you won't have to worry when you have that claim or ticket.

It's not a pricing game, it's all about coverage. Loyalty will get you everywhere!

I have so many customers who have learned the hard way. Statiscally, around 90% come back begging for us to take them back.

Response to direct question: No, claim free discounts aren't a "gimmick". Your father would likely have been paying even higher had he not have been reaping claim free discounts.

As for "the same coverage". Nope, he's not getting the same coverage. He may be getting the same limits and deductibles, but EVERY company's policy reads DIFFERENTLY. Those limits are only backed by the POLICY LANGUAGE and that policy language is only backed by the COMPANY that represents the policy language. So, no, same limits, different coverage. Get out the policy booklets, sit down with a licensed professional agent and you'll see all the differences. That declarations page your father has is only the very limited, basic information about the policy. Hartford is a good company, with low rates. Allstate is a better company, also with low rates. I work for State Farm, so I don't have a dog in this fight.

As for 50% difference in premiums, no way! Insurance is one of the most regulated industries in America and two companies cannot have that much difference in premium for the same coverages. It's not allowed by the National Association of Insurance Commissioners. NAIC. That's how I know your father doesn't have the same coverages with Hartford as he did with Allstate.

Also, I don't know your father's age, but he may want to specifically ask what Hartford's practices are, in his state, as to their rate increases and cancellations when a customers age exceeds 73.

Finally, you shared your credit score with us, it's great, but is only one tiny portion of your insurance score. Your insurance score may contain credit information, but it also contains info such as homeownership vs. renting, how long you've been insured continuously, how frequent your claims are, how quickly you pay your premium, how many claims you've turned in, regardless of fault, etc. Insurance scores can be very low, even if your credit score is high.

Julian Said:

Do car insurance companies always increase your premiums or drop you after excessive points?

We Answered:

You may want to consider taking driver's ed to get some of those points dropped off. Each insurance company is different, and you would need to check with your insurance company directly to find out about increases in your payments. In general, just about every auto insurance company will give you discounts, and reduce points if you take a driver's education course.

Nelson Said:

Will entering my '77 Ford Pinto in demolition races increase my car insurance premiums?

We Answered:

First you need to take a crash course in safety.