Insurance - Insurance Companies Rip Offs

Why is it when you pay into (mandatory) insurance companies for years and years with no claims, are they allowed to cancel you when you have a claim? What gives with this? They are allowed to collect, whatever they deem appropriate, for your homeowners insurance. They say, if you have TOO many credit cards, your a risk? That one really makes sense to me... I opened a Home Depot card for the 10% discount on a large purchase, same for the Penneys card... and since then have called and closed these accounts because I don't need them. But, they show on your credit evaluation, and for some reason count against you... even though you've never been late on a bill, never been to collections, and never been denied a card... I had two small claims a year ago.. Visiting San Francisco, someone broke into the back of my truck one time and stole $1200 worth of tools.. then 3 months later, someone broke the back window out of my rental car in SF again.. stealing about $4000 worth of equipment.. both payouts of the insurance mounted to around $1200 each.. I still don't understand why it went through home owners, not auto insurance, but.... at any rate, I got cancelled.. Now the tough part, I'm a high risk person, a BAD person, a PERSON that NO INSURANCE company wants to insure any longer!... So, to get insurance for my home, my quote went from aroung $500 a year, to over $2000 a year, and of course upping the deduction to the max! Why, or should I say how, is this legal? Sounds like the business I should have started years ago, collect from everyone, don't pay out, if you do, pay very little, then cancel these people so they have to pay 4 times more to get back their insurance... Maybe these guys need to be investigated or regulated some.... Another CROOKED organization! Oh yes, if I had caught the thief, shot him/her, then, I'm the bad guy again, go to jail forever.. you just can't win.

Insurance companies are in the business of making money. Period. If you have or they think you will cost them money, they don't want you. The part I find frustrating is that they're still trying to convince you that they're your friend - don't believe it for a second.

Here's a scary one: I was witness to an accident a while back and was contacted through the mail by both driver's ins co's. Got the statement request from the hittee's company about a month ago; no problem. Got basically same request yesterday from the hitter's company which just happens to be my insurance co. Think I'm going to mention that they carry my insurance? No way in he!!.

No offense frhrwa but, it seems you would be a high risk factor. Think about it if you were the insurance company (if I read your story right)... basically, your car got broken into once, and they stole your tools...when that happened...you took the chance again and left tools in another car and it got broken into again and they stole your tools...wouldn't you think...it's going to happen again (if you were the ins. co.)?

You should (if you haven't already) ask the insurance co. the reason why your premium is so high and find out exactly what they are reading (or seeing)...what pops up and what you can do, if anything...how long you have to wait and then go from there. Sometimes, reports can be wrong. You never know.

My advice, don't store your tools in your car again and if you do, make sure it's hidden or you can see your car to watch it. If it's not worth the claim, don't report it if it ever happens again, etc. Sucks, but it's just like homeowners insurance. Is it worth to make a claim or just leave it, pay it yourself, fix it, etc.

Sorry about what happened!

Some insurers do use credit history/activity as a tool when calculating rates. It's because on average those with bad credit or a lot of activity are not good risks. You are obviously price sensitive if you open cards to save 10% - that unfortunately is a reason not to want you.

Some insurers do use credit history/activity as a tool when calculating rates. It's because on average those with bad credit or a lot of activity are not good risks. You are obviously price sensitive if you open cards to save 10% - that unfortunately is a reason not to want you.

Can't say I'm price sensitive, but with todays ridiculous prices, 10% on a large purchase mounts up, and to just open a credit line is no big deal, I thought.. anyway, I don't need the credit line, could have paid cash for all of it, but decided to be frugal for once and try to save a little... any company worth its credentials would go a little farther to check ones credit history before making a rash decision regarding a simple Home Depot credit card or Penneys... I paid $45,000 for my truck... CASH... I put $250,000 down on my house... CASH... I buy most everything with cash.... If I purchase a car or truck, I pay it off within 6 months in order to just keep a good credit rating.. is this also wrong? Believe it or not, I PAY cash for my diesel fuel too... now that's saying something!

No offense frhrwa but, it seems you would be a high risk factor. Think about it if you were the insurance company (if I read your story right)... basically, your car got broken into once, and they stole your tools...when that happened...you took the chance again and left tools in another car and it got broken into again and they stole your tools...wouldn't you think...it's going to happen again (if you were the ins. co.)?


Yep.. the first hit was out of my truck, and quite frankly, I'm not used to getting ripped off.. I guess living on an Island for 16 years with virtually no low life scum bag doper thieves around, made me trusting... Now, as to the car, the windows had heavy tint, I was down near pier 39, lots of people around, and thinking, this couldn't or wouldn't happen to me twice.. but.. it did. In an instant, two "white" low lifes busted the back window, reached in and grabbed tool bags, camera, and what have you, then scorched down the road on their probably stolen bicycles... yep, saw them, but wasn't fast enough on foot to catch one of them.. DAMN good thing, because there would have been one less DRUG addict on the street! and, YEP I got a good enough look at them that if/when I ever see them, there will be a MAJOR problem for those two! and last but not least, your right, I DO NOT leave anything in the back of anything anymore! The insurance company should realize I am their best ally now, no chances taken anymore, and no simple claims because of the backlash...

I'm not trying to offend you but if you open a cc to save 10% you are price sensitive. I have done the same thing a few times!! Of course I figure if I can save $30 or $50 just to open a card and make one phone call to close it why not do it - it's like giving money away. I did that last year with a new grill.

Try and present your auto/home/umbrella insurance as a package to another insurer. If you can find an agent in your area that represents a carrier offering a true "package" policy (Kemper, Encompass, Met) they are more likely to write it for you at a competitive price. Trying to replace only your homeowners at a fair price will be futile. Also, if you own a business or need life insurance, offer that to the agent as well. They will likely work a little harder for you. Check the above carrier's web sites for the agent info. We get these done all the time for folks in your situation. Insurance Guy.

finally did that, I gave them my truck, travel trailer, and the house to insure.. the truck & trailer turned out cheaper, and the house was double, but a heck of a lot better than all the previous quotes... Thanks for the recommendation though... (but, Met was the one that pulled it on me to start with, so, I will NEVER use them again)...