My Premium Goes up on Accidents That Aren't My Fault - Is That Right?

LChesoRepresent on 26/08/2017 - 14:41

I'm still researching on my end, but I was told by my insurance company (Budget Direct) that I owe them money from two 'claims' that was made years ago relating to being hit by someone else. The other driver was at fault, accepts that, and paid for the damages. Does this even count as a 'claim', and are you guys aware about this fine-print? Just in case, I asked whether all insurance companies are the same to which I was told "yes".

My main concern is that insurance companies see you as a higher-risk driver if people hit you even if you're doing the right thing. I understanding reporting it may be important but I just can't stick any reasoning to my point above.

Automotive

Comments

  • scrimshaw on 26/08/2017 - 14:47

    A similar question was asked here. Not sure if it applies still.
    https://forums.whirlpool.net.au/archive/1938686

    • ChesoRepresent on 26/08/2017 - 15:23

      Thanks for the link, was good for reference.

  • altomic on 26/08/2017 - 14:50
    +1

    usually when completing online quotes and filling in your claims history it asks you to specify "at fault" or "not at fault".

    it would be interesting to do 2 side by side quotes. one through a VPN and one through regular connection. same information and specifing only "at fault" then doing second simultaneous deal quotes this time with "not at fault". and compare results.

    • Kangal on 26/08/2017 - 17:31
      +1

      You will notice no difference in prices. Insurer's number 1 goal is to first win you over as a customer, as some profit is better than no profit.
      The majority of customers pay for protection and never claim, so its usually 100% pure profit for them.

      However, they will use this clause as a means to bump up your premiums every year… so it should make a difference.
      That there shows how broken and fraudulent their calculations really are.
      And for that reason, basically all insurers have moved to remove that specific section and make their applications a bit more vague. Crafty sons a biscuits!!

  • stratbargain on 26/08/2017 - 15:15
    +3

    I had that with AAMI (or budget direct, I can't remember now). My car was hit by a taxi while it was parked (I wasn't anywhere near the car). Taxi driver left a note, I lodged it through insurance all got settled and didn't cost me anything (or so I thought) and then when it came time to renew they tried to hit me with a higher premium. They said it doesn't matter if I wasn't at fault I was still involved in an accident. So I changed insurers.

  • TheMatrix on 26/08/2017 - 15:46
    +2

    My car insurance's premium went up this year, and I did not even make any claim, it was for a new car we bought last year. When I rang and questioned the insurance company, they told me they adjust the premium accordingly to the risk data in my suburb. I told them I got a cheaper quote from Cole insurance and will switch if they insist on increasing my premium. They said they don't match premium price but would try to come up with a better deal for me. Anyway I end up getting a lower premium.

    • Kangal on 26/08/2017 - 17:27

      It's the same BS all insurers pitch.
      Ask for them to mail/email you the hard-copy statistics showing the discrepancy between the two and you will get either a fraudulent report, another renewal which didn't answer your question, or no response at all.

      Insurers are some of the best thieves in the world, and I tip my hat to them for getting on for so many centuries.

  • EightImmortals on 26/08/2017 - 17:23
    +2

    Premiums go up automatically (so I discovered earlier this year) even though we had made no claims over the years existing companies keep putting up the prices until you shop around and get a better deal. We cut our premiums in half by doing so.

  • Sawtell on 26/08/2017 - 17:38

    I had a 10 year no claims history with Budget Direct (2 cars, house and contents). A few years back I had two people rear end me (same car) plus hail damage to the house and same car all within 6 months.

    Premiums for house and cars went up by around 20%.

    Wasn't happy but got over it. They are still cheaper than others and for all the claims they were really good with assessment and repairs.

  • [Deactivated] on 26/08/2017 - 18:11
    +1

    Yep. That is the price of owning a car.

    Isnt it great how you can plummet into someones car and "they" end up paying more? Yet we still thing speed limits should be raised.

  • Banana on 26/08/2017 - 20:51

    My family was with budget direct for 5 years or so. Whether or not you're at fault, as long as you've made some claims/reported to them, they are likely to deem you as a high risk driver.

    I found BD to be rude and they don't treat loyal customers as well as the new ones(one of the phone operators said that to me). In the end I left them for RACV. We had since made one claim from RACV but the experience was much more pleasant than dealing with BD,even at times when we were trying to give them business.

  • Strahany on 28/08/2017 - 19:27

    When I was in a collision at the fault of another driver, we exchanged details and, instead of passing them on to my insurer, I handed them to a third party 'no fault' claim agency. They handled everything with the other party's insurance company, whilst my car was fixed by their 'recommended' panel beater. Their profit would be skimmed from somewhere, which I imagine came at the cost of the other party's insurer, but I didn't need to pay anything nor was my premium affected as I did not make a claim.

  • juicenburg on 29/08/2017 - 15:49
    +1

    Just as an FYI

    Every year your premium will go up, claim or no claim. They have a lot of room to move on the premium, if you don't negotiate they win.

    When you call, it is a standard practice to make an excuse - if you accept it, its easy money for them.

    If I am happy with the insurer, I go back to their website with a VPN and process a new quote for the address next door, it is always $150-$250 cheaper. I then call and get my renewal matched. (The sales guys always squirm to explain)

    If I am unhappy, I shop around!
    ( Aami just sent me a renewal for $750. I went online and did above, quote was for $610. I went to Bingle and its $450…)

    • ChesoRepresent on 29/08/2017 - 22:19

      I was told that the previous accidents (by the other party) was directly the reason why the prices went up, and that I was 'owing' them for my renewed policy, which hadn't changed when I paid it off about 2 months ago.

      Though I don't doubt what you said isn't true either, I'll definitely follow those steps if I do want to suss out prices.

      • juicenburg on 30/08/2017 - 08:48

        Not at fault should have zero effect on your premium, and you should never ow money unless you were unable to provide details from the other driver.

        I used to work in F&I so happy to help you sort this out, It is a money-grubbing industry (why I left).
        Did they bill you directly for the extra money, or did they add it on to your yearly/monthly premium?

        • ChesoRepresent on 31/08/2017 - 16:14

          They did a search and found out the info after I had paid off the new premium, so I'm still 'owing'. I still don't have any intentions of paying it since I never claimed it from them directly.

        • juicenburg on 01/09/2017 - 15:14

          @ChesoRepresent: Oh I get it now… Yea, don't pay anything. You didn't make a claim, you weren't at fault, you didn't pay any damages to any party… They have no grounds to stand on.

  • hunterhalo on 29/08/2017 - 17:45

    i just have a similar topic, not my fault like the OP and you have your premium increase which is what im worrying about

Login or Join to leave a comment
Login Join