Auto insurance sucks
I've got my budgeting down pretty well. One paycheck goes towards the mortgage, and the other to other stuff that needs to be paid. I'd forgotten, however, that it's auto insurance time again.
When I was living with my parents, I paid about $500 for 6 months. When I moved out, I needed to get my own policy, and they quoted my $700. I paid the deposit on it, but managed to get a speeding ticket which bumped it up to $1039. No choice since I was already under the coverage.
Two days ago I get my new bill. $1144. More than a hundred bucks more in six months. I start going shopping online.
Progressive: $1527.50. Geico: $3583.40. And for 12 months: GE Auto Insurance: $7734.90, and Kemper: $8,228.00.
Which is about what my car's worth.
Then I ran across esurance. Shortest form I've seen, asking for the fewest details. Speeding tickets? OK. The accident fell under "weather related". Their quote: $995.50. Unfortunately, they charge five bucks for each time you make an installment payment, so if I'd pay monthly that's another $60.
But I need to call up my current company and talk to them. What's that $58 "Statutory Assessment Recoupment"?
Comments
The Statutory Assessment Recoupment is a fee that is returned by the insurance company to the state. It goes mostly to pay for Catastrophic Claims. In Michigan, any medical claim that tops $250,000 is then taken over by this fund. According to my agent (I found your blog trying to answer my question) this is only in Michigan because of the unlimited medical liability.
Posted by: Steve H. | July 15, 2003 4:56 PM
I thought Esurance was a good deal, at least at first. I was originally given a quote of $774 for 6 months of full coverage for both my vehicles. Then they bumped it up bacause of what they called an at fault accident (private property my vehicle rolled into another vehicle). Now I was paying $874 for 6 months coverage. Ok, this was still far less that I paid at the other place. 6 months goes by and it's time to renew. Now the coverage will cost me $943 for 6 months of full coverage. Being on a fixed income, this was out of range for my budget, so I called Esurance to have the coverage changed to just P.D. and P.L. as I own both vehicles outright. I was told by the person I spoke with that I would have to pay $943 for full coverage first and then they would give me a P.D. & P.L. coverage quote and credit me for the overpayment. I tried in vain to explain to this person that I could not afford the $943 and that was why I wanted to lower the coverage and pay the lower coverage amount. I was told that Esurance WOULD NOT do that and I would have to either pay for full coverage first or let my policy expire and take out a new policy to get the lower coverage that I wanted. As you can imagine this was unacceptable to me and I dumped Esurance that day after finding another online insurane company the gave me a quote that I could afford. Esurance may call it something else, but in my book they practice "Bait and Switch" If it looks like a duck and walks like a duck then it is a duck.
Posted by: Ernie Hatley | August 15, 2006 4:07 PM
Avi,
I'm a magazine reporter doing a story on shopping for car insurance online. I'd love to chat with you about your experience, especially because it looks like you put a lot of research into the shopping process, but still felt frustrated by the price and attached fees. E-mail me if you'd be interested. I'm at amarek@hearst.com. Thanks!
Posted by: Angie | April 9, 2008 11:51 AM
I have worked in insurance for 20 years. My husband is an attorney dealing with auto claims. WORST COMPANY I HAVE EVER DEALT WITH. Won't pay claims related to accident. Medical bills disputed! Service horrible. STAY AWAY FROM ESURANCE!!!!!!!!!!!!
Posted by: janet | May 21, 2008 7:43 AM
I just got this insurance, I'm going to try it because the Geico policy had me at 1200 every 6 months! This has me at 830, I figure even with additional hidden fees it can't be more than 1200!
Posted by: Sam | May 28, 2008 1:39 PM
Did they tell you why they couldn't change your payment plan? Did it maybe have something to do with you waiting until the last second to contact them and let them know? WHen did they let you know how much you would have to pay? My guess is it was a month or more before you actually had to make the payment. Why didn't you call them earlier? As far as hidden fees, did you read your terms? You read them for credit card applications don't you? Why would this be any different? Take some personal responsibility for yourself! it's not always someone else's fault!
Posted by: Larry | May 29, 2008 8:42 PM
I want to know how an insurance company can total your car, give you less than you owe and tell you thats all they can do. This guy cuts through a construction zone on the expressway and he is a construction worker. He t-bones and totals my car. Now I have a 5000 debt for a car I don't have. Is it me or does that sound like some bullshit!!!! How about the construction worker that hit my car give me $14,000 dollars and spend a year in jail. I just bought the car a few months ago, so according to these bullshit insurance co. I am screwed. If anyone know that this is bullshit and can tell me different I would love to hear it.
Posted by: big d | June 3, 2010 7:06 PM