Auto Insurance point assigned unfairly.?

After reviewing my Auto Insurance for the past year (it's time to renew) I noticed that my premiums had increased from one 6 month period to the next. After calling the company I was told that I had been assigned a point for what they are calling an accident. The so called accident they are referring to is about 8 months ago I had a tire blow out (days after I got them) from either something on the road or from clipping a curb. Since I had just bought my tires I was a little upset so I called my insurance company to see if flat tires were covered under my policy. They answered my inquiry by reminding me that I had a $500 deductible and so I eagerly made the decision to just replace the tire myself and do nothing to file a claim. The company (GEICO btw) then decided that this counts as an accident and gave me a point on my insurance (for three years) and thus increased my rates. Does anyone know if this is leagal and what I can do to dispute and rectify this sitution?

bundysmom

ANY TIME report an incident to your insurance company by law they are required to open a claim. Whether they pay out or not isn't the point. (The law is this way b/c someone at some point in time screwed up somehow and this is the result of that.) At the same time, they are required to investigate the loss no matter how major or minor it is before assigning fault. But blown tires are generally a comp claim unless it blew due to collision (like hitting a curb) OR it blew and you hit something else (like a wall).

You should call Geico claims and find out their theory of liability and if they change it in their system you must ask for a letter of experience. Even though it's changed in their system it will still show on ou CLUE report as at fault and the letter of experience is all you will have to prove you were not at fault.

oklatom

Yes, it's legal. If they learn of anything from any source they can use it, and when you call and tell them, it saves them a lot of trouble. It may be time to look at other sources of coverage and renewal time, and tell them you are doing that, and why.

Sue

Usually points can only be charged if there is actually a claim AND the payout is over a certain amount ($500-$1500 is a normal amount depending on the State). Points cannot be surcharged for less UNLESS the company has a special rate filing with the state. I would check with your state Dept of Insurance to find this out. If GEICO is charging you in error, they have to refund the additional charge. This unfortunately is one of the downfalls of companies that do not have agents. If you had an agent, you can call to find out if a certain situation is covered & they can tell you yes or no WITHOUT reporting it to the company. If something was not covered, the company would never need to know & would not have an opportunity to charge you for something in error.
Remember, you get what you pay for. Also, I BEAT GEICO's rates quite often. I had one insured that thought he would save over $200 by changing but found out after really comparing coverage, he would only save $40 per year but his homeowners would go up by $150 by changing auto insurance companies so he actually would be paying MORE by changing. He would have no agent by changing too.

Fred C

Unfortunately, it is. It is too bad your query hadn't been anonymous. We do have one advantage here in Manitoba. You can call me at my office, or you can even take your car in to the adjuster, but, if you don't proceed with the claim, it doesn't exist. There are people in some states that have asked a casual question of their agent, and discovered a premium increase. You have been royally shafted, unfortunately. I would write a calm letter of protest explaining the problem was with a tire, not an actual accident, and request it be removed from the record. One month before your next renewal, shop around, make sure you disclose to any quoting agents that Geico is counting an unclaimed blow-out as an accident, and penalizing you for it, and that is why you are rate-shopping.

Scott H

I've heard of this. Even just calling the insurance company with a question about a claim can count against you, even if no claim is actually made. Is it right? No. They do it because they can get away with it.

No, your auto insurance doesn't cover flat tires, unless they are destroyed in an accident.

dethklok

When you called them they probably filed a claim. As long as you did not hit anything, file a collision claim, report damages to the dmv or file a police report they cannot charge you. I would ask them to pull up your driving record and accident history report form the DMV to show if there is anything there. Good luck.

Oh BTW: an accident is chargeable if it is $750 or more (well at least in CA)

lm050254

I don't think they are entitled to increase your premium, because was n o payment made to you or somebody else on account of this accident. Also, is no record of a Police Report showing an accident. I think you should contact your Insurance Commissioner and explain the case.
GOOD LUCK!!!

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