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Auto Insurance Blues & Homeowner insurance question

September 22nd, 2016 at 12:32 pm

My auto insurance renewed this month and it went up. I decided to look around and made a startling discovery. I am ineligible for insurance at most agencies. I was in shock. I couldn't figure out why. So I pulled a report that the insurance companies use to determine you insurance score. Apparently I am a below average risk. What makes me a below average risk you ask? Well I have opened too many accounts in the last 24 months. Industry research shows that people that use their credit are more likely to file claims. What else? I have retail store cards...and, you guessed it, industry research shows that people with retail store cards are more likely to file claims. So although I am not using my cards anymore they are still biting me in the butt. I guess I will have to stay where I am. It didn't go up much so that is good.

I got a quote from my current carrier for homeowners to combine everything. It is double what we are currently paying for homeowners insurance. He said that the only thing he could think of is that the policy we have now will only pay depreciated value and the policy he quoted me pays replacement value. Have any of you heard anything like this? I have never had homeowners insurance so I don't know if that is legit or not. And if it is legit, which is the better policy to have?

8 Responses to “Auto Insurance Blues & Homeowner insurance question”

  1. Jenn Says:

    It's easy enough to check your current homeowners policy and see if you have "replacement coverage". That is what you want. But be careful with the insurance reps - they are salespeople after all. Of course he suggested that something is wrong with your current coverage rather than admitting that his policy is overpriced.

    And while you're comparing prices - you may want to see if the current carrier for your homeowners policy would quote you an auto policy. (instead of the reverse)

  2. PatientSaver Says:

    You want to have replacement value, not depreciated, but it will probably cost more too. Say there's some kind of storm and your much loved 20-year-old thingamajig gets destroyed. Having replacement value coverage will ensure you can buy a comparable replacement and have it covered 100%; if you only have depreciated coverage, it won't pay to replace a 20-year-old item which could, on paper, be practically worthless, even though it held great value for you.

    By the way, would you consider changing the colors on your blog? I've always found it very hard to read the pink font on black, and also the pink font with blue background.It kind of hurts my eyes. Just a thought.

    If you want to save money on the car insurance, how old is the car? Most people say you can drop collision and/or comprehensive if the car is at least 6 years old. I'm planning on dropping my collision next year, and my car will be just 4 years old, but if you look at the policy, collision alone costs quite a bit. It's a calculated risk; if you do a lot of driving in heavy traffic, it may not be a wise choice. But anyway, you can legally drop either one if that's what you like.

  3. North Georgia Gal Says:

    PatientSaver...I changed the colors. Didn't realize it was hard to read. My car is only 3 years old so I don't really want to drop full coverage. I couldn't afford to replace it if something happened.

  4. scottish girl Says:

    I like the new colours.

  5. PatientSaver Says:

    Much better...thank you!

  6. VS_ozgirl Says:

    Sorry to hear that the practice of opening and closing accounts to better your finances has created some problems, perhaps with a bit of time and no more opening of accounts you might better your insurance score.

  7. frugaltexan75 Says:

    I plan on keeping full coverage on my car until it's either ten years old, or has been in an accident where it starts to actually look .. old or beat up.

    That's too bad about not being insurable due to opening too many accounts.

  8. Dido Says:

    Good luck with the insurance And thanks for changing the blog colrs--much easier to read now!

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