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Can Fender Benders Raise Home Insurance Rates?

A preponderance of fender-benders and speeding tickets could add to some consumers’ insurance rates – not just on auto policies, but for a homeowners policy, too.

A new Allstate product, House & Home, looks at prospective customers’ driving records and auto insurance claims when determining rates for a homeowners insurance policy. According to the Chicago Tribune, Allstate documents for its agents state, “Research shows there is a strong correlation between auto and homeowners’ losses and that a person’s driving history can be a predictor of an individual’s loss potential with their home.” The insurer currently offers House & Home in Oklahoma only, the paper says, but plans to introduce it in other states. Allstate did not respond to requests for comment.

Allstate may be the first insurer to link driving behavior and home habits, but experts say its new policy is just the latest example in a growing trend of out-of-the-box risk assessment. In recent years, several insurers have tried (with mixed responses from state regulators) to use consumers’ credit scores as a measure of risk for insurance policies, says Scott Simmonds, an independent insurance consultant based in Saco, Maine. Then there’s the long-offered good student discount, which can cut the bill by 20%. “Is an A student really a better driver than a C student?” he says. “That’s not necessarily true, but what kind of person is an A student? They’re looking at the behavior that probably leads to those good grades.”

By that measure, Saco says, insurers are likely be more interested in what three fender-benders in three months might indicate about a person’s regard for their property, rather than slap on a higher rate for a lone speeding ticket last year. And homeowners with a good driving record are likely to see more competitive rates from such assessments.

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    • “Thank you for writing. I apatecipre your concerns, but I’m going to do it my way in any case.”If you ARE forced to exit, perhaps I could help: If you just liquidate all your assets and send me the cash, I’ll put it in an account, and pretend it’s mine, so the IRS won’t suspect anything.What do you think?

    • The other insurance conapmy, liable carrier, will require medical bills and records to evaluate your claim. Depending on your state, will determine how the rest of the claim is paid. If your insurance carrier, Allstate, is allowed subrogation rights by law, then they will put the at fault carrier on notice. When the claim is settled, they will issue a check to Allstate for their interest and you will receive the remaining amount. If any other medical providers have not been paid and they’ve filed a lein against the settlement, the at fault carrier will also issue them a check seperately. If no other medical providers have filed leins, then demand the insurance carrier to pay you directly for unpaid bills as by law, it is your responsibility. Now, in some states, your medical provider can get paid by the MED PAY policy and the at fault party can also pay you for the medical bills. But to answer your question, the medical provider can’t get paid twice for the same work. Remember, if no lein has been filed, then the at fault party either pays you or your insurance carrier (subrogation). Have the at fault party provide you with copies of all leins filed on your behalf. If you have any questions, contact Allstate and they could clarify any questions you might have.

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    • Allstate, THE GOOD HANDS PEOPLE,can do anything that they want; even tho they are really MAYHEM in disguise. After having life insurance with them for 26 years and recently becoming 71 years old they decided to increase my insurance premiums 29%, causing me to forfeit my insurance coverage. I can only imagine that because I’m 71 years old they realize I might die soon. The State Dept of Insurance couldn’t do anything. After all, they are Allstate Insurance Co.—THE GOOD HANDS PEOPLE!!

    • I’m not surprised at anything Allstate does. They are MAYHEM themselves and certainly not THE GOOD HANDS PEOPLE! I’m 71 years old and after carrying life insurance with Allstate for 26 years they raised my premiums 29% causing me to forfeit my insurance coverage, now that I’m old enough that I might die.
      The State Dept of Insurance coulldn’t do anything. AFTER ALL THEY ARE ALLSTATE INSURANCE CO.— THE GOOD HANDS PEOPLE.

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