Auto Insurance Question

[Mears]

I'm in the process of shopping around for homeowners insurance, and have been getting auto insurance quotes as well for multiple policy discounts. I received a quote from a Traveler's agent for home/auto and called today to purchase it. I couldn't talk with the same agent and the new one I was talking with noted an error in the quote I received. When the first agent was filling out my forms she listed the bodily injury limits of my current insurance as being higher than 25k/50k. In reality, I only have 25k/50k through Geico. So when she makes the corrections, the quote goes up over a $100/yr. WTF? Why should it matter what my current coverage is if I haven't filed any claims? It doesn't make any difference whether I select 25k/50k or higher with the new policy either.

Could I get in trouble if I call Geico this week and have them raise my bodily injury limits and then turn around and order the Traveler's policies stating that my current bodily injury limit is greater than 25k/50k?

 

[funboy6942]

I cant answer your question, but you may want to get a quote from nationwide. I called everyone under the sun and nationwide gave me the best coverage, and best quote then any other insurance company out there.

 

[mithrandir2001]

Originally posted by: Mears
Why should it matter what my current coverage is if I haven't filed any claims?

If someone's current coverage is "low" this suggests to the insurer that they are a risk. This is because the insurer views the insured as less responsible by carrying unrealistically low coverage, even if the coverage meets legal requirements, or the insured is low income, which means there is a greater chance for claims in order to make an easy buck.

It's based on scientific analysis and part of the reason why it seems "cold".

Insurance doesn't always make sense. I have pretty high coverage: 250/500/100 on a car less than 4 years old, yet my annual bill is under $800. And I live in the burbs, not the boonies.

 

[Mears]

Originally posted by: mithrandir2001

Originally posted by: Mears
Why should it matter what my current coverage is if I haven't filed any claims?

If someone's current coverage is "low" this suggests to the insurer that they are a risk. This is because the insurer views the insured as less responsible by carrying unrealistically low coverage, even if the coverage meets legal requirements, or the insured is low income, which means there is a greater chance for claims in order to make an easy buck.

It's based on scientific analysis and part of the reason why it seems "cold".

Insurance doesn't always make sense. I have pretty high coverage: 250/500/100 on a car less than 4 years old, yet my annual bill is under $800. And I live in the burbs, not the boonies.

Fair enough.

So does anyone know if there could be any legal ramifications if I change my current policy temporarily to gain a more favorable price on the policy I intend to purchase?

 

[Mears]

I'm going to go for it. Wish me luck.

 

[jemcam]

I don't know why there would be a legal risk at all. It's not like you're committing fraud or anything. Unless I'm misunderstanding something.

 

[Mears]

Originally posted by: jemcam
I don't know why there would be a legal risk at all. It's not like you're committing fraud or anything. Unless I'm misunderstanding something.

Well, I'm changing the coverage details of my current policy for a couple of days in order to gain a better rate on a new policy.