Where do Ins Compaies get info?

[Rancher_Will]

Last month the renewal date came around for the insurance policy renewal for our Montana 5th Wheel and Dodge Ram that I use to pull it. The premium renewal rate was increased almost double from the premium rate last year and over the past few years.

When I called the Ins Company I was told that the rate increased for the reason that I had had a claim in 2015. I had no claim. I informed the Insurance Rep that their information was in error and I have had no claim of any kind in over 30 years.

The insurance rep insisted that they "had a record that I had filed a claim in 2015". When I asked for details and where they got info, she could not give me an answer, again, repeatedly, stating that they had "received information that I had filed a claim".

I then called three other insurance companies, to get a quote for insurance, informing each one why I was calling since I had been with State Farm for over 30 years. I informed each of the three that State Farm had raised my premium rate "for the reason of a claim in 2015" although I had never filed any claim.

All three companies agents checked and told me that they could find no record of any claim filed by me. I cancelled the State Farm Policy and purchased a new policy with National General Insurance, paying a lower premium than the original State Farm Policy and receiving even better coverage. I have no idea how State Farm got such erroneous information.

[ol_Bombero-JC]

WyoTraveler wrote:
I had State Farm auto insurance for almost 50 years with no claim. I put in a claim for a broken rear window on my MH and they doubled my rate. I switched to Natl General. I have put in several claims to them for broken windows and no increase in rates.

IMO - State Farm is one of the worst for increases - for no particular reason...:R

Another common ins co practice is "low-balling" - then increasing the
rate/s the second year of coverage.

BTW -IMO- many companies & agents believe the buyer (you, the insured) is CLUE-less (pun) and just write a check for the premium, as billed.......so -

YOUR job is to shop around - comparing apples to apples (the exact coverage from each company) - even if it's only for comparison purposes.

~

[dons2346]

Did you have a windshield repair done? Did you call your insurance company to see if they would cover the repair? If you did that, then there is your claim.

Those guys that claim a "no cost repair" are full of it. They cause a comprehensive claim to be filed with your insurance company. They get their money from somewhere.

[WyoTraveler]

I had State Farm auto insurance for almost 50 years with no claim. I put in a claim for a broken rear window on my MH and they doubled my rate. I switched to Natl General. I have put in several claims to them for broken windows and no increase in rates.

[Homer1]

I do the same thing that Ken56 does. Insurance companies assume when you re-new with them year after year you are satisfied with their rates and will also assume you will continue to buy from them. They have a term for that type customer and I cannot think of it is right at this moment. I also change insurance companies frequently, believe me; longevity makes an insurance company no difference when it comes to rates and penalties. I do this with health insurance, auto, home, and Rv insurance

[Sam_Spade]

Regardless of why this happened, it is a MISTAKE and you need to get it corrected.

If one more call to State Farm (ask for someone at the home office) doesn't clear it up, find out what agency in your State does the Insurance Company regulation and contact them.

Things worse than this might end up being reported against "you" if you don't put a stop to it now.

[ReadyToGo]

If you have inquired about coverage about a fender bender or other minor accident and not done anything about a claim, insurance companies (some) will still consider that a claim. That can be why other insurance companies dont see the same thing.

[ken56]

I hear tell that you never stay with the same insurance co. for more than 2 yrs. at a time. Over the years I have noticed that my rate goes up a little bit every year, like 25 to 50 bucks. When I change carriers the rate goes back to a figure the same or below what the previous policy was originally, change of vehicles not withstanding, with the same coverage limits. I started changing my insurance carrier every 2-3 yrs about 20 yrs ago after getting fed up with the rate raising in spite of no claims BS and think its been good practice. I have had very few claims over the years with no problems what so ever doing this.

[Duck]

When I worked for State Farm we were able to look up the information on our computers if a customer inquired about it. The CLUE report would have been a help if you knew about them. I would have gone to the office and asked to talked to the agent himself for an explanation. You don't want this error popping up on the CLUE report in the future.
Don

[Y-Guy]

What you want to learn about is the CLUE Report, CLUE stands for Comprehensive Loss Underwriting Exchange. A CLUE report is how the insurance company keeps tabs on you, similar to a credit report for insurance. It has info about claims, etc on your Homeowner's Insurance and on your Auto Insurance.

You can get your CLUE report once a year for free as I recall, here is more info on it. Click here.

Clark Howard a radio host talks about this at time, like when not to contact your insurance agent, etc. You can google Clark Howard C.L.U.E. report for more info.