Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Okay, I called USAA again to speak with another agent and inquire about the increase. Apparently, it's due to something called the North Carolina Reinsurance Facility.
This is what I found out about it...not really sure, but oh well...guess there's nothing I can do about it. The North Carolina Reinsurance Facility was created to provide motor vehicle insurance to those eligible risk applicants that insurance companies would not voluntarily insure. When an insurance company agent determines that an applicant for insurance is found to be an unacceptable risk, the agent will "cede" the risk to the Facility.
Nope, I've had my license for 11 years and have not had any "action" (e.g. ticket, etc.) on my license in 8 years.
Quote:
Okay, I called USAA again to speak with another agent and inquire about the increase. Apparently, it's due to something called the North Carolina Reinsurance Facility.
This is what I found out about it...not really sure, but oh well...guess there's nothing I can do about it.
The North Carolina Reinsurance Facility was created to provide motor vehicle insurance to those eligible risk applicants that insurance companies would not voluntarily insure. When an insurance company agent determines that an applicant for insurance is found to be an unacceptable risk, the agent will "cede" the risk to the Facility.
After points, the second major factor affecting the cost of liability insurance is whether a motor vehicle owner has been transferred (through a process known as "ceding") to the North Carolina Motor Vehicle Reinsurance Facility. The Reinsurance Facility is a nonprofit legal entity consisting of all insurers engaged in writing motor vehicle insurance in North Carolina. Its purpose is to provide liability insurance for drivers or vehicle owners whom companies do not wish to insure as part of their regular voluntary business. In brief, it is a method of transferring the risk of loss from the individual insurance company to all insurance companies.
North Carolina law makes no provision regarding which individuals are to be ceded to the Reinsurance Facility. The decision belongs entirely to each particular insurance company. If an applicant for motor vehicle liability insurance is, for any reason, considered an undesirable risk by the company, it may cede the applicant to the Reinsurance Facility even though the person has a clean driving record. In other words, it is possible for a person who has never received a traffic citation or had an accident to be ceded to the Reinsurance Facility. Obviously, those with bad driving records are prime candidates, but a company may transfer anyone it considers a bad risk for any reason. Reportedly young drivers, the elderly, and some occupational groups often fall within this category. There is no appeal process, but applicants may seek coverage with another company that would not cede them to the Reinsurance Facility.
That is so lame. I have such a good history with USAA & clean driving record in CA & NC. I mentioned all this to the CSR and asked for any other discount, but evidently there were none she could give me.
That is so lame. I have such a good history with USAA & clean driving record in CA & NC. I mentioned all this to the CSR and asked for any other discount, but evidently there were none she could give me.
Call back and this time ask for the CSR's supervisor. Keep walking up the ladder as far as you can. But be polite and don't lose your temper. Do get the names of the people you talk with tho. It does help.
I've been a member since 1982 and never had a problem with them...you just have to be firm and polite and keep asking for the right people. Sometimes the first people who answer the phone aren't the ones you really need to talk to anyway. Liz
I would say it's time to start shopping around for quotes from other companies in NC. This could be happening because an insurance agent has to have a license to work in/for the state of NC. So perhaps they are not licensed in NC and that is why they are transferring you to this reinsurance facility. I remember when I was trying to transfer my car insurance from NY to NC, the person who answered the call couldn't help me, they always had to tranfer me to a CSR who was licensed in the state of NC. HTH!
I would say it's time to start shopping around for quotes from other companies in NC. This could be happening because an insurance agent has to have a license to work in/for the state of NC. So perhaps they are not licensed in NC and that is why they are transferring you to this reinsurance facility. I remember when I was trying to transfer my car insurance from NY to NC, the person who answered the call couldn't help me, they always had to tranfer me to a CSR who was licensed in the state of NC. HTH!
Nope, that isn't the reason with USAA.
USAA is licensed to do business in every state in the union. They do not assign you a specific agent per se like State Farm or any other insurance agency does.
Like I said, I've been with them since 1982 and I have never had an agent, just the agency.
Quote:
United Services Automobile Association (USAA) is a Fortune 200 financial services company focused on providing banking, investing, and insurance to people and families that serve, or served, in the military of the United States and other selected federal agencies.
USAA was founded in 1922 by a group of U.S. Army officers to self-insure each other when they were unable to secure auto insurance due to the perception that they were a high-risk group. USAA has since expanded to serve officers, NCOs, enlisted, and their families a full range of property & casualty insurance, banking, life insurance, investment and financial planning products and services. USAA was one of the pioneers of direct marketing and most of its business is conducted over the Internet or telephone.
Hi there,
We relocated from NJ (where I think we had one of the highest insurance rates in the nation) to NC 1 1/2 years ago.
I did the same thing as you. I called our national auto insurance company and switched states. They gave me the same song/dance when I asked them why no change in rates.
SO...I called some local auto insurance companies...and GET THIS......the rate dropped by 50%!!!! It appears that if you stay with your same insurance company and simply switch states, THEY WILL GET (edited here because my original word that does not begin with an F didn't get past the filters) YOU.
We are good drivers (no points or anything) with 2 cars and were paying over $2000/year. Now we pay $1,000 year. You can get an online quote from Geico just to test it out....which is where we went. They were cheapest. But the local AllState offered a price not much higher and we have our home ins with them so there'd be a discount. Someday I'll move it over.
I try to plaster this all over this board to make sure people KNOW not to use their same auto insurance company. My NJ/National company were willing to lose me, a long time customer (which they did) rather than reduce their rates. Whatever.
SO...I called some local auto insurance companies...and GET THIS......the rate dropped by 50%!!!! It appears that if you stay with your same insurance company and simply switch states, THEY WILL GET (edited here because my original word that does not begin with an F didn't get past the filters) YOU.
We are good drivers (no points or anything) with 2 cars and were paying over $2000/year. Now we pay $1,000 year. You can get an online quote from Geico just to test it out....which is where we went. They were cheapest. But the local AllState offered a price not much higher and we have our home ins with them so there'd be a discount. Someday I'll move it over.
I just checked my policy online and since I can also access a copy of my old policy I had a way to check my previous figures for MI.
In MI we were paying almost $1000 every 6 months for 2 vehicles. Move those same two vehicles to NC and we now are paying just under $530. every 6 months. The coverage is not identical because MI is a No-Fault state and NC has Uninsured/underinsured drivers coverage.
We also have our house insurance with USAA, our bank is there, and so is our mortgage. Liz
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A possible answer...
