Auto Insurance Penalty For Previous Policy

[NCAgent]

Is it 200 per 6 months or per year? What coverage did you have and what did you jump into? And how many carriers did you change with over a certain period of time?

I know some people who changed carriers every 6 months for 2 years and then want the star treatment when coming to me. Not saying that is you but they wonder why they don't get preferred rates...

It could be a number of different reasons.

 

[Bob Klee]

Allstate insurance has that rule in TN & other states. If you come to them with state minimum liability rates you end up in a more expensive tier.

Unless they changed the rules, I had folks just call their carrier & raise the limits, fax me a new Dec sheet while they were in the office & Presto! Better rate with Allstate. The "MMG's" as they called their rules, didn't state how long the person had to have prior coverage for!

Know the rules folks & you'll write a bunch more policies & have happy customers instead up upset ones like this one!

 

[YouGotMyMoney]

just another reason not to work with redheaded devils

 

[moneymaker1]

As others here have stated, yes, they can do this. The real question though is, did you TELL your new agent that your coverages were higher than they really were? Without a policy or some other form of information we have to rely on what our prospects tell us when we run quotes.

I do agree with the other person here though that said $200 and 2 years seems excessive. I would ask them to re-run the quote for you with all of the CORRECT information and see how the quote compares to your actual policy. It sounds like there's some sort of internal rating error.

 

[hpfrench]

Don't know if they told the agent they had higher limits or the agent to get a better rate but them in with higher limits. If the agent did and then didn't verify, shame on them. Most of the time when you pull the ALH you see terms with prior and current levels.

 

[jonesmiyh2011]

Are you serious? What underwriting questions do they ask where you are? MD, DE, and VA do.

Not trying to be a jerk but just currious what factors determine rates?

 

[Sales71]

Limits of the prior ins does not change ur auto rate in CA with allstate.

 

[Scottyj]

Are you serious? What underwriting questions do they ask where you are? MD, DE, and VA do.

Not trying to be a jerk but just currious what factors determine rates?

Its cali man... Cali is about 5-10 years ahead of the curve on both law and insurance... that is why many non res agencies that try to sell in cali fail. It is a whole different world out there. No credit score necessary on personal auto and home... Blanket AI , Blanket Waiver, and Primary wording a necessity on any type of contractors GL coverage...

Most agents I compete with here in UT have never even heard of this stuff... In fact my underwritters for UT look at me like I am nuts when I ask for it...

 

[AgentProvocateur]

I know this is an old thread, but prior liability limits are a common rating factor these days, in states allowing it. The reasoning is applicants with higher liability limits tend to have less claims. Some states, such as California, allow only rating factors with a proven & common sense causal link to increased risk, such as years of driver experience, prior driving record, & annual mileage, instead of things of dubious causal relationship, like credit, occupation, education level, your prior insurance company, or amount of your prior coverage.

For example, people with blue eyes, as a class of drivers, may have more accidents than people with brown eyes, but it's hard to accept there is a causal relationship between eye color and driving habits. It's a spurious correlation.

The op's situation reminds me of the way we did business in the old days, having to rely on the accuracy of the information given by the applicant. Fortunately these days, many companies have their agents verify driving record, insurance history, & the amount of prior coverage, through the mvr, clue, and insurance history reports, before binding.