So I just got a certified letter from my insurance company, PURE, notifying me that they are dropping our auto policy because of too many claims in the past five years, which included two wrecks that were NOT my fault , as well as a few window rock chip repairs and one windshield replacement. On several of these, the company did not even pay out anything as it was less than deductible.
-
Why would they drop me flat out without raising my rate first? And all of these claims were over a five year period.
-
So should one never tell their auto insurance company of an accident unless you need them to pay something? The two wrecks were not my fault) even indicated as such by my company, but still it is using them as cause to drop me. And one of the was caused by an uninsured motorist for which I did have coverage for, but I fixed it myself and never even got money from my insurance for it.
Posted by Responsible-Cat8404
6 Comments
1) because they aren’t required to do so. they may be content with you being someone else’s problem rather than try to retain you lol. nothing personal of course, it’s an algorithm making the decision
2) you’re required to disclose potential liability claims against you, but besides that, correct. not every claim is a smart financial decision to make
1) because they can. It’s a business decision.
2) doesn’t matter if you’re not at fault a is still a claim.
So two not at fault claims, 3 rock chip claims and a full windshield replacement claim in the last 5 years… that’s 6 claims total.
In the eyes of insurance… a claim is a claim no matter what.
It’s a hard market right now, and it’s very unsurprising that multiple claims got you dropped. Insurance is for the loss you can’t afford to pay yourself. By filing so many small claims, you’ve demonstrated that you’re very likely to continue, which demonstrates an undesirable risk profile. It’s not personal. Make sure you find new coverage immediately.
If you have Pure you can afford to pay these small claims out of pocket
This is EXACTLY why I always advise pursuing third-party liability claims first and foremost without involvement of your own insurance carrier when possible, and not filing $0 deductible glass claims (my state is one that enforces this). It’s also dependent on the state as some states are not allowed to surcharge or underwrite based on non-fault claims (referring back to my state, it has no such restrictions).
The insurance market is a shitshow right now and carriers are doing anything they can within regulations to reduce risk exposure.
>So should one never tell their auto insurance company of an accident unless you need them to pay something?
Basically, correct. However, if you suspect any potential liability on your part, you should inform them. Otherwise, as I said, avoid filing ANY claims (unless you’re in certain states where this is regulated more). Contractually speaking, you’re supposed to inform them of any and all losses, but *realistically* if there is absolutely zero suspected liability from you (i.e., someone rearends your vehicle), they don’t need to be involved unless you seek out your own coverages.
Next time someone tells another to “use your collision coverage” for a not-at-fault loss I’m linking back to your post lol.
Edit: CLUE does not record third-party claims (basically where you’re a claimant of another policy other than one you’re on).