warning about using insurance company roadside assistance (lease, motorcycle, SUV)
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I might have to consider getting AAA. We only have one reasonable option for auto insurance in NJ. I'd hate for them to have a reason to charge me more.
Interesting. I let my AAA expire and added the roadside assitance that Geico offers since it was $10 a year, versus AAA's $60. It may be worth the extra $50 not to have to worry about it affecting rates in the long term, though...
My Chase Mastercard has an 800# for roadside assistance but only if you are more than 50 miles from home. They call it something like travel assistance. They arrange for the the towtruck, tire changer, gas, etc, but you pay for it. The charge automatically goes onto your credit card, but it is a prenegotiated rate which is usually cheaper than what you would get outright.
Also...why do you need to pay for an annual service for towing/roadside assistance? I keep a phone book in my trunk. If I need a roadside service, I'll call a tow truck and pay them for their service when and IF I need it. I needed roadside assistance once in 20 years of driving. In that case, I called the local auto dealership, since I needed to bring the car there service. They gave me the tel# of the local tow company. I didn't need AAA or anything else. Why pay annually roadside assistance if you hardly every need it?
As an insurance agent, I can tell you, as far as all the companies I write for and all the states I am licensed in:
-towing/roadside assistance do show up on your clue
-they do not affect your rates AT ALL
-you can have your agent check the rates BEFORE running a clue/MVR report, and then after, if you want to double check
-it is usually much cheaper, my companies usually charge $12 a year
A poster mentioned a theft claim and a parking lot dent.... these are true claims and will affect your rating and/or surcharge. If it is a theft of contents, it would be covered under homeowners, and will increase the rate on your homeowner's premium.
while geico may not raise you for using roadside assistance im not 100% convinced that if your comparing rates that another company wont figure that in a a judgement as to the type of person you may be.
the same as a judgement is made for auto insurance off your credit report i can see someone who has a history of running out of gas,driving a poorly maintained automobile or being absent minded and locking their keys in the car being penalized by a new company quoting them.
heres a blurb from consumer reports
"did you know?
a tow could boost your car insurance premium
Using an insurance company’s roadside assistance or towing benefits too often could affect your rates (and not in a nice way) or even your eligibility for coverage. Some auto insurers consider your calls for roadside assistance to be negatives, just like accident claims. State Farm, the nation’s largest insurer, says the use of roadside assistance is a very small factor in calculating rates or considering a driver’s insurability. Some insurers report roadside assistance calls made under their policies to ChoicePoint, an Alpharetta, Ga., company that compiles claims information for the insurance industry. Nationwide Insurance and Geico say they report the information but don’t use it in their policy decisions. Allstate says it doesn’t report usage by members of the Allstate Motor Club, but it does report towing claims made under its insurance policies."
while geico may not raise you for using roadside assistance im not 100% convinced that if your comparing rates that another company wont figure that in a a judgement as to the type of person you may be.
the same as a judgement is made for auto insurance off your credit report i can see someone who has a history of running out of gas,driving a poorly maintained automobile or being absent minded and locking their keys in the car being penalized by a new company quoting them.
heres a blurb from consumer reports
"did you know?
a tow could boost your car insurance premium
Using an insurance company’s roadside assistance or towing benefits too often could affect your rates (and not in a nice way) or even your eligibility for coverage. Some auto insurers consider your calls for roadside assistance to be negatives, just like accident claims. State Farm, the nation’s largest insurer, says the use of roadside assistance is a very small factor in calculating rates or considering a driver’s insurability. Some insurers report roadside assistance calls made under their policies to ChoicePoint, an Alpharetta, Ga., company that compiles claims information for the insurance industry. Nationwide Insurance and Geico say they report the information but don’t use it in their policy decisions. Allstate says it doesn’t report usage by members of the Allstate Motor Club, but it does report towing claims made under its insurance policies."
Ok, that's one carrier, and they use it as a very small factor. Some carriers use your profession, your marital status, the number of bathrooms you have.... as small factors to determine rating. It is not the same as a claim. A claim on your clue usually makes a big difference, especially if there are two. Towing is not going to make any difference with MOST carriers, and apparently a very small difference with State Farm (which is way overpriced anyway.)
As I mentioned, have the agent give you the premium before and after CLUE is run, that will tell you exactly how much CLUE affected your premium. It's really not something people should be worried about.
I was with Allstate for 20 years with no claims,tickets or accidents and they kept raising my rate,got mad and went to Geico for less and they went and raised renewal rate each time,this is 60 years with no claim or ticket history.
Out of curiosity tried USAA,they denied me because of Lexis Nexis.
I got notice about credit report,trans union,I do not charge and have not in years.What happened was many years ago Alcatel Lucent lost pension disc and advised a free credit freeze,have never been able to unfreeze it.
I am now back with Allstate,different agent at lower rate,Allstate informed me about trans union.Maybe I have teaser rate??? will find out.Driving record means nothing only credit report or Lexis Nexis.
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