Bad Economy, Drivers Canceling Their Car Insurance

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Re: Bad Economy Drivers Canceling Their Car Insurance

Many motorists - about 38% according to research - decide to not claim on their car insurance because they are afraid of losing their no claims bonus and pushing up the cost of premiums at renewal time.

It is young drivers who tend to avoid claiming with two thirds of people in this age group failing to make claims after accidents; most are trying to keep down the cost of premiums and do not want to risk a substantial increase when being young tends to incur sizeable premiums in any event.

Re: Bad Economy Drivers Canceling Their Car Insurance

However, your piece concerning ways to reduce your costs is not as helpful as one might think.

Firstly, changing companies after you have been with a certain company for a while puts you in a bad position as a NEW customer.

Your OLD company usually gives discounts for those who didn't let their insurance lapse or who stay with them.

Secondly, many people are not listed in such a good credit category, and some of the companies listed use what they see as negative credit information against you and do not let you get a policy at all-- pushing you into the assigned risk category.

In my own experience, the Hartford (which also handles the AARP's policies,) is one of those which doesn't approve you based on what they perceive as bad credit; same for Allstate.

Luckily, I still had my old insurance in force (paid up) as they played their tricks and erroneously went ahead and told the NY State DMV (Dept.

Liberty Mutual did that to me in l972 as well, but that was in the age before computers.

They were wrong, and although I didn't get an apology, they weren't able to charge me with anything, and I kept my old policy.

Sometimes the grass appears to be greener on the other side of the fence and it is not so. It was like "yun paket tracca/affair/effor pu gran merci!

What I would suggest to your readers is that everyone take the special six hour course called, "Defensive Driving" which is given in NY state for about $50 (or less sometimes- if you hunt around for the right hours and locations,) and it has the effect of reducing your insurance costs by 10% for three consecutive years-- which was worth about $600 or more to me, and then you have to take the course again after another three years.

This course, by the way, can also remove some "points" on your license if you have them for any speeding tickets and so on. The best way to keep your insuance costs low is to drive safely and carefully and NOT to have any accidents.

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