What is the best approach for appealing an insurance rating on my auto? I have my credit score (around 800) my driving history (1 speeding ticket for 5 over in the last 20 years) and my claims history (2 claims for body damage; neither were my fault).

The company (AAA) says I'm a 'higher risk' than average, because I:
1. Have too many credit cards (all with zero balances)
2. My credit history is too short (my credit report shows accounts since 1984)
3. Too many credit inquires (3 within 2 years)
4. Installment loan debt-to-loan ratio too high (just bought a new car.)

Any ideas?

Thank you!

From my experience, there isn't a way to appeal your rating. Buying a new car does affect the rating somewhat. Even though you have the cards with 0 balances, the fact that you have several accounts open also factors in. These aren't the only things that factor into insurance rating.

Your best bet may be to shop around because each company uses its own set of criteria for rating their policyholders.

I'm a little confused about what you want to appeal. If your premiums have gone up because of the factors you list, then go to your sales agent and tell him those factors don't exist so you don't understand why your rates are going up. If he doesn't make an adjustment, then you will look for another carrier. And start shopping around.

Also, you're more than likely paying a higher premium for the newer car. Insurance rates change periodically as well; the insurance companies and agents don't decide this, your state insurance commissioner and legislation determines the rates for your area.

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Originally Posted by ScottGem

I'm a little confused about what you want to appeal. If your premiums have gone up because of the factors you list, then go to your sales agent and tell him those factors don't exist so you don't understand why your rates are going up. If he doesn't make an adjustment, then you will look for another carrier. And start shopping around.

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Scott,

This is a new insurance carrier for me. I just switched to AAA because they were cheaper than my old company. However, I see in their "risk assessment" that they are 'dinging' me on the 4 items I mentioned.

I understand from speaking with my new agent, that you can appeal this rating, and they will review your appeal. He also told me this risk rating system is before the Supreme Court as being unconstitutional.

So, I was looking for suggestions on how to present my appeal.

Make sense? Sorry for being too vague. :o

OP, each time you transfer carriers it also slightly affects the rating- not quite the same as a loan inquiry but still a 'soft' hit.

Shop around for a different insurance carrier. Sounds like an appeal with them would be a waste of your time as they will probably raise your rates in a few months.

You complain by changing companies, what you are seeing is a mere version of a old bait and switch ( OK not quite that bad)

But they give you a estimated rate and then or at your next renewal, they raise the rates.

You appeal by going back to your old company, or a new company that will not charge you for that.

I think saying it's a "bait and switch" may be going a little too far. As an agent, every customer that has a rate change at renewal claims "bait and switch". The reality is that rates change sometimes several times a year due to legislation. Depending on when your renewal falls, there may have been 2 state rate increases since last time and you will get hit with both at the same time (just an example). The agents have no bearing on your individual rate.

That being said, each company may offer different discounts (multi-line, multi-car, good driving). Check with your agent to see if you qualify for any discounts. Also, many companies offer incentives for staying a loyal customer. Discounts are subject to each state's legislation so even if you see a commercial in your area, the discounts may not apply in your state.

Sorry, as a insurance agent, I see some companies do this more and more, they offer a rate and many times the actual issued rate is much more. ( a estimate rate is not a binding rate)
Or at the next renewal it is a lot higher for many factors that were the same but was just "discovered"

I can think of at least 2 car companies and at lest 4 health insurance companies that are really bad at it.

Well, I am sending in my "appeal" today via fax. I will let you all know what transpires. Thanks everyone for the input.

:)

If an insurer offered you a low rate then raised it after the first term when nothing changed in your history, then I would start to think bait and switch too.

Good luck with your appeal, keep us posted.

Quote:

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Originally Posted by ScottGem

If an insurer offered you a low rate then raised it after the first term when nothing changed in your history, then I would start to think bait and switch too.

Good luck with your appeal, keep us posted.

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Scott,

To clarify (I hope!): I don't know if my quoted rate for the new insurance has been effected by the 4 negative indicators or not. I got the risk assessment along with the 'welcome package' in the mail, but no information on the premium. I was irritated that I was not in their "premium" risk category, as I have historically qualified as such. I'm ASSUMING that these negative items will impact my premium, but I have not seen my first invoice yet.

If it's more than the 'quoted' price, I will continue to shop around. (How much will this impact my credit score? I don't know how a 'soft hit' works.) I'm hoping the appeal will make a difference. (I just appealed my tax assessment on my house too!) It's amazing I am able to work full time! :p