I started auto insurance with my first care back in 1984 with Statefarm and when I came to California in 1989, the rates started going up even though I never had a claim. California AAA gave me a better price around 1995. Then I had one very low speed accident in 2001 where I rear ended the car in front of me at a yield sign when the car in front moved and suddenly stopped. Perhaps CA AAA paid about $3k max for both the cars. They increased the premium by almost $1000 a year for 3 years (effectively collecting what they paid). 3 years later, I switched to Costco American Express auto insurance which later became Ameriprise. 12 years later in 2012 June I had one accident in small town where what I thought was yield for me and stop for the other car in a 25mph zone was the other way around. No injuries but my car was worth $10k and that is what I got. The other car seemed to be worth $5k. My wife hit a speed bump at night on her minivan at barely 10mph at night but it damaged a cruise sensor on her Sienna which costs $2k to replace. The Toyota dealer suggested that I file a claim and I had to fight with Ameriprise to get coverage. This happened in early 2012. When I got my renewal, the premium went up by whopping $2k per year which they said will remain for 5yrs. So, they planned to collect $10k from me even though I paid them perhaps $15k in the past 12 yrs.
So, I was able to get Hartford insurance with AARP for $1k less than the new quote from Ameriprise which would remain for 5yrs. If I am lucky, my wife will not be called a "bad driver" 3yrs from her only "accident" by Jan 2015 and may be the rate will come down by $600 per yr.
So, AARP did help me for now. However, the summary of the story is that if I paid $2k for my wife's Sienna instead of filing the claim, I would have saved at least $2k in 3 yrs. Basically Ameriprise collected whatever they paid for the Sienna. The lesson to learn is that if there is no third party involved, pay it rather than file a claim. This is true even for Home owner's insurance. The repair person always tells you to file a claim and they quote a very high price and tell you that you don't have to pay anything out of pocket. If I shopped around I would have probably found some one to fix the cruise sensor for $1k.
Conclusion: AARP can help you if you are over 50 and got a high quote for auto insurance if you have an accident. AARP was actually $3 more expensive than best internet rate for a motel 6 I booked $61 Vs $64. I plan to take a cruise to Hawaii and Alaska. Last time I used Costco after checking AAA and Costco. Next time I will check AARP. Also, I saved $100 per yr when I got 100 mile coverage for me, my wife and son (less than 25years). The service is offered by Allstate. I did not use it so far but I guess that may be another blog in future...
Shop around for insurance every time you have a renewal on Home or Auto insurance. Once you are their customer, the insurance companies don't have any motivation to reduce your premium even if you have no claims. Excuse is inflation. Same is true with Cable/Sat TV and Internet service providers. Only new customers get a promo. I do have a story to tell about Dish Network and Comcast one fine day...
So, I was able to get Hartford insurance with AARP for $1k less than the new quote from Ameriprise which would remain for 5yrs. If I am lucky, my wife will not be called a "bad driver" 3yrs from her only "accident" by Jan 2015 and may be the rate will come down by $600 per yr.
So, AARP did help me for now. However, the summary of the story is that if I paid $2k for my wife's Sienna instead of filing the claim, I would have saved at least $2k in 3 yrs. Basically Ameriprise collected whatever they paid for the Sienna. The lesson to learn is that if there is no third party involved, pay it rather than file a claim. This is true even for Home owner's insurance. The repair person always tells you to file a claim and they quote a very high price and tell you that you don't have to pay anything out of pocket. If I shopped around I would have probably found some one to fix the cruise sensor for $1k.
Conclusion: AARP can help you if you are over 50 and got a high quote for auto insurance if you have an accident. AARP was actually $3 more expensive than best internet rate for a motel 6 I booked $61 Vs $64. I plan to take a cruise to Hawaii and Alaska. Last time I used Costco after checking AAA and Costco. Next time I will check AARP. Also, I saved $100 per yr when I got 100 mile coverage for me, my wife and son (less than 25years). The service is offered by Allstate. I did not use it so far but I guess that may be another blog in future...
Shop around for insurance every time you have a renewal on Home or Auto insurance. Once you are their customer, the insurance companies don't have any motivation to reduce your premium even if you have no claims. Excuse is inflation. Same is true with Cable/Sat TV and Internet service providers. Only new customers get a promo. I do have a story to tell about Dish Network and Comcast one fine day...
No comments:
Post a Comment