Beware Insurance Company

While fueling up at Flying-J in Belleview, OH, I got too close to a phalanx of yellow posts; I removed the paint on several of them as I turned left with my right rear bumper.  Since this was my first accident on which I thought was severe enough to make a claim, I did so.  The insurance company was happy to send a check to the local RV repair provider. 

What happened next was a terrible surprise: they upped my premium by about $170 a month for a period of 3 years.  That is about twice the amount they paid on the claim.

If they had told me that there would have been an internal "punishment" point system applied for any at fault claims, I would not have made the claim; just paid the bill outright.

Suffice it to say, I am changing to  another insurance provider, the one I had with my previous motorhome and travel trailer.  When I bought my 2004 Journey, the RV dealer said that this different insurance provider (you would easily recognize the company and affiliation) was more in tune with RV owners.  Beware, fellow RV'ers.

Wendell

Are you under some sort of contract with this insurance company? Which company is it? Can you shop around for other insurance?

I am defilnitely going to shop around for a better rate.

The company is G * * *, and has C***ing W***d on the policy.

Wendell

I don't understand the part about the insurance company paying the "local RV repair provider". 

I had an insurance claim a while back and when they told me they were sending the check to a repair shop, I about blew a gut. 

I told them I paid the insurance premiums not the repair shop, and I wanted the check made out to ME.  They Fed Ex'd to me the next day.

I could just imagine the repair shop cashing the check then suddenly my 2 day repair was going to drag on for  months and months. (Heard this horror tale before too!)

3  months later, my annual  insurance came due and was renewed.  The rate was not increased. I wasn't at fault with what happened, (tree branch fell through my roof in a state park during a bad storm)

But I have a friend who was robbed and substantial damage was done to her home.  She filed a claim, and she has perfect credit, over 30 years of home ownership, her first claim ever.

They penalized her something awful in punitive renewal rates. So when a tree crashed through her roof, she was too terrified to report it to the insurance company.

In many cases, it does pay to have a high deductible and an emergency savings account. For many claims you do come out better to suffer the costs yourself and save the biggies for the insurance company.

I don't understand their rhyme or reason for renewing some policies and penalizing others with a huge rate increase.

Shop around and find someone that wants to do business with you. Consider a larger savings account and higher deductible.

DearMissMermaid said:

I don't understand the part about the insurance company paying the "local RV repair provider". 

I had an insurance claim a while back and when they told me they were sending the check to a repair shop, I about blew a gut. 

One Reason for this is when there is a Lein Holder on the policy.  They will make the check out to the repair shop instead of the required "You and the Lein Holder".  It is usually easier for you that way.  Not having to send the check to the lein holder for endorsement before the repair shop can be paid and release your vehicle.  Reason for all the above is that the Lein Holder in many ways has more rights in the policy than you do.  IF the owner were to cash the check, Then the vehicle be repossessed.  The Insurance Company could have to pay for that damage to the lein holder again!!

I told them I paid the insurance premiums not the repair shop, and I wanted the check made out to ME.  They Fed Ex'd to me the next day.

I could just imagine the repair shop cashing the check then suddenly my 2 day repair was going to drag on for  months and months. (Heard this horror tale before too!)

3  months later, my annual  insurance came due and was renewed.  The rate was not increased. I wasn't at fault with what happened, (tree branch fell through my roof in a state park during a bad storm)

A big difference than what happened above.  One a "Comprehensive" claim the Other a "Collosion" claim

But I have a friend who was robbed and substantial damage was done to her home.  She filed a claim, and she has perfect credit, over 30 years of home ownership, her first claim ever.

They penalized her something awful in punitive renewal rates. So when a tree crashed through her roof, she was too terrified to report it to the insurance company.

Many Stick and Brick Insurance companies have been taking large rate increases in the past few years.  It seems there have been "Extra" natural disasters that have been hitting folks hard in the last few years.

In many cases, it does pay to have a high deductible and an emergency savings account. For many claims you do come out better to suffer the costs yourself and save the biggies for the insurance company.

A very good point and the REAL purpose of Insurance is to reimburse you for MAJOR losses one can not afford to handle.  If you want a product to repair every little thing that comes along...  Get a maintanance policy/contract.

I don't understand their rhyme or reason for renewing some policies and penalizing others with a huge rate increase.

This is varied based on each company and the type of loss.  Some have First accident forgiveness,  Others dont charge extra for Comp claims until you reach a certain level then they just will not renew that contract. (A Policy is a contract)
Some of this in my opinion is dictated by the overall profitability of each company in a given area, and a given line of insurance.  If they are making good money on a product line and in a given state. They dont look as close.  If that profitability has suffered,  Every policy gets looked at much closer and actions taken that the consumer ususally dont like.

Shop around and find someone that wants to do business with you. Consider a larger savings account and higher deductible.

Always good advice!!

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MissMermaid,
Do not take this as an attack on you!  I only quote you as a platform to share information.

In the future folks.....
If you have damage.  DONT call your Insurance company first!!!
Call a repair shop and get an estimate.  If it is enough over your deductible that a claim is worth filing.  By all means do so. That is why you buy coverage. 
If it is below or slightly over your deductible. 
They do not need to know this happened.

An insurance company basically uses past experience to judge if a future problem will occur.  They use your past experience and theirs.  If you have past events...  Odds show you will have more.  SO they must charge more to cover those events.

So you're not going to buy again from Goodsam or Camping World. Their insurance is through GMAC, right.

Almost all insurance companies will raise rates after at fault accidents. But that raise seems excessive.

Jerry

When an insurer pays for repairs to your vehicle, they want to be assured the repairs are actually made (so they don't end up paying for them again later, and so that any bank lien is satisfied). Standard practice is to make the check out to you and the repair shop of your choice, jointly. They can't cash the check without your agreement and you can't cash the check without coming to terms with the shop.

I second Big D on his advise.

I suspect that every Insurance Company has different policies. In any case, do not call your insurance company unless you determine that the loss is greater than your deductable.

As a rancher and truck business owner I have insurances in addition to our RV. I have had two experiences in years past resulting in my shopping for a new insurance company.

A few years ago Progressive Insurance Co tripled my premium based on what their rep stated was a report that I had been involved in a vehicle accident. I had not been in any accident and I offered proof that their info was false. They refused to accept my evidence so I cancelled that policy and went with another company.

The second incident, previously, was when State Farm doubled my premium with no reason given. That was when I went with Progressive. I have never had any accident reported to any insurance company in my life for any personal or business action so I have no qualms in shopping for insurance. At present I have GMAC Insurance with Good Sam for our RV.

One of the advantages of an insurance company with live agents is this... They can talk to you.. Not like a computer but actually helpful talk.

For example, let's say you do 700 in damage and you have 500 deductable,  Now you know you gonna pay 500, but if your insurance company has a policy of say "Claims below 150 pay out do not count" then for 50 more you don't get slammed.  No computer will tell you this.

I have had agents tell me that.

So you pay your 500, plus the extra 50, the insurance co pays 150, and you don't get slammed.

But with the comptuer companies, You pay 500 the insurance pays 200 and your rates go up 150/year.