Quote:
Originally Posted by shermanator2
I heard Clark Howard on the radio a while back saying to never use the roadside coverage on your regular auto insurance policy because they effectively count that claim like an accident, and use it as an excuse to raise your rates. It also goes into the database like an accident so other insurance companies count it that way and will rate you accordingly making it hard to change insurance companies.
He was basically saying that if you need a tow, your are better off paying for it yourself. I do not know if this applies to AAA.
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I used to work for State Farm Auto Insurance Company, more specifically in subrogation, but broadly in auto claims. I can tell you that at least from a standpoint of State Farm, they don't play those games.
If you're putting **** insurance on your car, yeah you may see those types of shenanigans. Technically speaking the laws would allow for it. That said, it's really bad business to be charging a fee for something like a roadside hazard rider, or a windshield rider and then start jacking up rates immediately after it's used.
In the insurance biz, if you play those games, start rapidly raising rates, dropping coverages etc. you can guarantee you'll lose that coverage as well as any other coverage you have on the books for that insured, to a competitor. Point being for small fry stuff like road side and glass, you'd have to be a pretty habitual offender to start seeing those things happen, assuming you're dealing with a reputable agency.
Edit: Wanted to point out that Clark isn't wrong in the strictest sense. Every incident will of course go into your policy records, otherwise how does it get paid out? The problem with the statement is it's overbroad and a generality that would of course be different company to company. I haven't heard the segment, but I would also guess he may be talking about filing a roadside claim on a policy that doesn't specifically have a roadside rider on it. That's different and asking the policy to do something it's not indemnifying itself against. So if you want to have your insurance policy cover roadside, it absolutely needs to have a roadside rider on it. Same thing for glass coverage, uninsured motorist coverage etc.