Shady business practices by Grundy Insurance? You be the judge.

I'll be the first to admit I don't fully understand how the insurance industry works, bur when something looks fishy to me, it looks fishy to me.

My father lives with my wife and I. He owns a 59 Corvette, I own a 55 Chevy. We're on the same policy, since we live in the same house. It only made sense. We've had Grundy for 6 or so years now. We both have agreed value coverage, and have not changed anything on the policy since we opened it. Our policy is up for renewal very soon, so that's what brought this to mind.

All was well for the first few years. We've had no claims. Last year, we noticed a sizable jump in our premiums. Perhaps there were small increases in the years before, but nothing to crow about, and nothing that stands out to mind. Bear in mind, we changed nothing on our policy. When we contacted Grundy to inquire as to why, we were told (more or less, not a direct quote) that because the values on our cars is going up, the premium went up. My father has NEVER had a ticket, and I seem to maintain 2 points all the time (as soon as I'm set to get the points dropped, I get pulled over for something, oh well). So it's not like we're any higher risk than we ever were. All in all, the policy for both cars has increased $100-$150 over the period of time we've had it.

What? Correct me if I'm wrong, but I have AGREED VALUE coverage, I said what the car was worth, you agreed. How can you justify increasing our premiums based on market values, when agreed value is only at best partially affected by market value? My point being: If I say my car is worth $30k and it gets stolen, am I getting $30k, or what Grundy now thinks it's worth, when adjusted for market values? I don't want to jump to conclusions, but I think I know that answer. It's not a question of lowering my agreed values, because I shouldn't have to. I'm the customer, and I need to see justification for why I'm being charged more for the same service.

Has anyone else noticed questionable increases on their Grundy policies? Am I wrong to question this? I have a sneaking suspicion that there will be another increase this year.

Conversely, has anyone with a Hagerty policy noticed increases like this?

I don't want to sound like a malcontent, but I figured the best way to get a straight answer is to put it out publicly. I know Grundy has a presence here, and I think they owe us (or at least me) an explanation. If it's a plausible explanation, I'll put my big girl panties on and pay the increase. If not, I feel I deserve better from a company that claims to be an industry leader.

 

Of course car insurance is expensive.

It has to be.

They have to pay for all those TV commercials somehow...

 

Uh.....did you call THEM and ask?? They did that to me as well, but mine was under insured so that was fine with me.

 

Yes, we called Grundy directly. That's who told us market values on our cars was increasing, so our premium increased.

 

Your post prompted me to open the envelope with my renewal info inside, it had just come in the mail a couple of days ago but isn't due until 6/22/12. It looks like mine has stayed the same as last year costwise.

I think that explanation you got was not right, you are right, it doesn't matter if the value of old cars has climbed or not, you are only dealing with Agreed Value. (Plus, the market price for most old cars is DOWN due to the economy, not UP)

My neighbor had a similar situation on his home policy. He had the same insurance for 12 years with no claims and suddenly State Farm dropped him. When he called and told them he had never had a claim so why were they doing that they told him that statistically he was about to have a claim and they wanted out ! True story.

Call back and ask for a supervisor and see what they say.

Don

 

I didn't push the issue last year, and I maybe should have. If I see something similar this year, I'm definitely contacting someone for an explanation.
Thanks.

 

You need to talk to someone higher up,they have treated me great and the rates have stayed about the same untill we BOTH agreed to raised the value,FYI sometimes under insured cars cost more than higher values......that was the case with my 56 chevy

 

It seems to me that you should have asked then the same question you posed here - If you have Agreed Value (and not stated value) then why the drastic change in premium. From what I read, you didn't ask that question of them.

As for the other question, my Hagerty policy has never had that issue.

 

As far as being under-insured, I couldn't sell it for the insured value, and I'm pretty sure I could replace it with that amount. So if I can't sell it for the insured price, doesn't that mean it's insured for MORE than market value? I legitimately don't know these things, so I'm not trying to be accusatory against Grundy here, if they can offer a plausible explanation.

 

The "agreed value" policy is the whole reason to insure your car with Grundy or Haggerty's.
No other major insurance company allows for agreed value on a vintage car.
As was said earlier the market for these cars had not gotten better regardless of some of the prices that people are asking.
Something smells like yesterdays diaper here.

 

I didn't, as I didn't want to push the issue then. I probably should have, but I didn't. I simply asked why the policy increased.
I'm thinking there's going to be some deeper questions this year.
Thanks.

 

I think it has more to do with getting the car FIXED in case of an accident, as those shop prices have INCREASED over the years. It has nothing to do with the Agreed Value of the car.

 

I have Heacock and my policy hasn't rasied since I got it due to the fact that I haven't rasied my agreed value.

 

Sure they do - Leland-West, AAA, American Collectors Insurance among others

 

Maybe you got "Current Valve Insurance" is there such? If so, they should pay you accordingly.

Yeah, Shady. We all know they're not going to pay you more than the 30k agreed.

Grundy Insurance? More like Greedy Insurance.

 

So this is an interesting read: http://www.grundy.com/insurance101/lesson7.aspx

It's a good explanation, but as has been stated, the classic car market has taken a hit if anything, I would think. On one hand, it's nice that they do that for their customers. On the other, it looks like a hollow reason to increase people's rates since they can't simply increase agreed value rates like other policies and justify it as cost of doing business.

 

So the fact that some folks have Grundy agreed value coverage and have not had an increase, pretty much kills the adjustment based on cost to repair theory, right?

 

Denise's explanation makes the most sense. The cost of repairing them has gotten way up there, and maybe the Agreed Value really only comes into play if there is a total loss.

Don

 

Maybe those two points on your record consistently are causing them to go up.

Don

 

Perhaps, but if it's the same now as it was then, I can't see the justification, and it still doesn't explain the reason we were given when we called Grundy.

 

Maybe they are looking at it like not just two points but a CONTINOUS two points AKA always getting tickets?? Perhaps thats the issue??

Insurance companies are strange..... my daily driver was STOLEN last Oct, no fault of mine, but when I ask Hagerty about insuring my new '60 wagon they said they weren't interested in insuring me because of the recent loss! No shit, they wouldn't insure me cuz of something that happend to my daily. Go figure.

 

NO. I just when though this. If the repairs start to exceed 75% of the agreed value then they start looking at it as a total loss or the Areed Valve.

Don't kid yourself, they're into the money making business. If they really were concerned, they should have notified him, outlined it, & give him the option. Just just tack it on, Shady.

 

Sorry, but this is not a true statment. I have agreed value with State Farm.

 

Liberty Mutual. They took care of me like you would believe. And I rearended the other person. Within a week I had a 5k check from the first quick inspection & paid in full the 20k, the AGEEDED VALUE. The only quention . . . , "do you want to buy the car back"?

 

I get that, but why didn't they just tell me that?

 

I have JC Taylor, and they are "agreed value" also

 

The last couple years my polices went up a few bucks each year. I have three cars insured at this time. I have a close relationship with my Grundy agent and he tells me they automaticly add around 3-4% each year but I can have that taken off if desired and I did. He tagged my policies to do that each year unless I approve any agreed value changes. The best thing is deal with a local agent that you know and can be trusted. Talk to others in your area and they will tell you who the best agents are.

 

Insurance companies are basically the biggest pyramid schemes going. If every policy holder had an accident at the same time they'd never be able to make right on their promises. The company would collapse and void all of their contracts, I don't know how it's legal.

Insurance companies can freely discriminate based on age, gender, and by class (they charge more for low income, urban areas). I try to not even think about it or I'll go insane.

It's one of those pay the bill and be happy my car's on the road type of situations. You'd have a better chance of proving string theory than figuring out how an insurance company works.

 

I had coverage with Sneed Robinson Gerber for many years,(20 +) with no claims. They sold to Chrome ins. My policy costs remaind close to the same. About a year & a half ago my 34 got rear ended by two cars, I stopped for a red light in front of a cop, they didnt. I got a few estimates & went with one over $8K, the other guys company (Fred Loya lowballed me at $1799.) Chrome paid the full estimate rather quickly with no problems. At renewal time they dropped me so I now have Hagarty.

 

I wonder if they'd take the increases off if we asked? Not surprising that they didn't mention that when we called. I guess they're taught "Answer the question you were asked, nothing more".