Sadly, this week I will have to tell a customer that her auto policy will not be renewed.
This is a woman who has been with this insurance company for over a decade.
She is a model citizen in many ways:
- A career working against poverty in South America
- A perfect driving record
- Excellent billing history
Her husband doesn't have the unblemished record but that is nothing new and any way it's not that bad.
That wasn't the problem according to the insurance company anyway.
The problem was having filed "too many" "hit and run" claims.
From the insurance company point of view, since they can't collect from a known "guilty" party in these claims (they call this subrogation) they are not happy. It is almost as bad as when they have to pay when you have an accident where you are at fault, and sometimes worse from their point of view, since they can't raise your rates going forward which they could if it actually was your fault.
What is the lesson here?
Be very careful with what claims you file.
Pick your battles.
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The insurance company is counting every penny.
Even if you're a good driver who doesn't hit any one else, you can be seen as a revenue drain. That's no good. Insurance companies exist to take in more money that they pay out.
So be aware.
If you don't watch out you might get the non-renewal blues too!