Ray asked:
My car was total loss in a collision accident recently. Although I can get full payment without paying the deductible, my insurance company said I was 50-50 fault. Now, my new car was cheaper than my old one but the premium was more than double. Why do you think that happen? Is it because of my previous accident?
First, a 50/50 accident is at fault to both parties. So, you got surcharged on your policy for the accident (look at the “steps” on the back or bottom of your policy & you will see it there). Also, just because a car is “cheaper” in cost than another car, doesn’t mean it is less to insure. It could actually be more to insure due to the rating symbol (which is based on claims paid & injuries sustained for that vehicle). I know for sure that a $20,000 Honda can be less premium to insure than a $10,000 Kia. The Subaru Imprezas (especially the sport models) are now as much or more to insure than a Lexus or other high end vehicles. When you look at your policy, compare the rating symbols. The higher the symbol, the more cost to insure for comprehensive & collision coverages. The cost of the vehicle itself is only a small part of what goes into that rating symbol.
Do you have the exact same coverage as you did before to include, your BI and Underinsured limits? Did your agent accidently increase them when replacing the new auto for the old? Please note, your insurer found you to be equally negligent. This being the case, you were not surcharged. To be surcharged you have to be more than 50% at fault. The fact that they waived your deductible confirms you will not get a surcharge. Also, most insurance companies in MA now allow one At Fault loss before they surcharge you. Check your SDIP points. Anything above 15, you will be paying more. You probably should have looked into the cost of insurance for the new vehicle before you purchased it, but who really does that anyway? I don’t.