In Jan 2011, I scraped someone’s bumper (parked car, no bodily injury). I admitted fault and after all was handled by Allstate total cost: $768 and I

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jun 11, 2012

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Insurance Question from Spring Valley, CA

Asked on 06/11/2012

In Jan 2011, I scraped someone’s bumper (parked car, no bodily injury). I admitted fault and after all was handled by Allstate total cost: $768 and I had a $500 deductible. This claim was filed for my hyundai tiburon, the only vehicle I owned at the time. However, I bought a truck a couple months later, March, and put the hyundai in storage as a non-op with liability only. A few months ago, I was going through some of life's challenges and my disorganization caused me to be late on payments for 2 months. They cancelled my policy, I paid all the fines and original cost and renewed. My premium doubled from 800 +/- to 1600+/- per 6 months. Is this legal? $768 = $4800 over 3 yr? Customer relations "highest level" said, they can't change unless

Answer given on June 12, 2012

Your insurance coverage is based on your driving record at the time the policy is issued. The rates are updated at the next renewal, but, in your case, the premium was probably not yet reflecting your auto claim. In addition, some insurance companies give a discount for continuous insurance coverage with the company. Once the policy lapses for non-payment, then you could be charged for the accident and you may have lost your renewal discount. Not every insurance company works that way.You should shop your insurance with other insurance companies to see if a better rate is available. If you still have the first car insured, even for just liability, you would be eligible for a multi car discount. If you are only insuring one car, then that discount, which can be as much as 20%, would be lost. You can also get discounts if you insure your home, or contents with the same insurance company. Check into the possibility of combining your policies to one insurance company.


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