HELP!: 2nd year Insurance Renewal Increased by 30% Can I Contest

**migs267** · September 7th, 2011 09:49 AM

Hey Guys! Can you help me out here? I just want to get a 2nd opinion... I have car under mortgage (5 year term) and in-house insurance. The 1st year insurance expired in July 2011.

I planned to renew the insurance without getting the bank in-house insurance. However, the quotation I received from other insurance is way too expensive for a 1 year old car.

My last insurance cost around 19.5K. For the 2nd year, the quote I got cost around 25K. So I drop the plan. I called my old insurance company and inquire the renewal cost.
I was informed the car insurance was renewed by the bank so I called the bank car loan department. They told me they already paid the 2nd year insurance and it cost around 25.4K.

I was shock... I expect the 2nd year renewal cost would be lesser for the 2nd year as the insurance premium usually decrease 5-10% per year based on the information I read in this forum and also from the experienced of the other car owners. My first insurance is comprehensive with AOG.
This is just a renewal so I assume there is no change in the content of the policy unless they add something to justify the increase of the premium. Though I recall I claim an insurance last year for the replacement of the front bumper. Im not sure if this affects the premium for the 2nd year.

I plan to call the bank car loan department to contest the premium but I want to get first a 2nd opinion from the seniors here..

Appreciate the help... thanks!

**_Qwerty_** · September 7th, 2011 10:42 AM

nasa pinirmahan mo yan.. you should have looked for another insurance months before your old insurance expires.. tapos you have to give a copy of the policy sa bank.. pag wala silang natanggap.. automatic i re renew nila yang insurance mo kasi hindi pwedeng walang comprehensive insurance yang oto mo kasi naka loan pa sa bank... you should have read yung papers from the bank.. also papadalhan ka naman nang notice nang bank for renewal.. hindi naman basta basta ni re renew yan nang walang notice..

baka kaya nagmahal dahil sa Acts of god (AOG) clause.. check your old insurance.. magkano premium don sa AOG.. check the new one kung magkano premium this time.. walang effect yang claim mo against sa insurance mo.. current market value ang basis nang insurance..

wala ka na magagawa.. na renew na yung insurance mo eh.. tandaan mo na lang para next year.. ask for other quotes 1 month before mag expire yang insurance mo then compare mo sa quote nang in house nang bank.. kung ano mas mababa don ka..

**mark_t** · September 24th, 2011 02:05 PM

60 days before expiry ng policy po ninyo dapat ina asikaso na ninyo

or

checkmate ka sa bank.

**jazzinmypants** · September 29th, 2011 05:34 PM

Originally Posted by _Qwerty_

nasa pinirmahan mo yan.. you should have looked for another insurance months before your old insurance expires.. tapos you have to give a copy of the policy sa bank.. pag wala silang natanggap.. automatic i re renew nila yang insurance mo kasi hindi pwedeng walang comprehensive insurance yang oto mo kasi naka loan pa sa bank... you should have read yung papers from the bank.. also papadalhan ka naman nang notice nang bank for renewal.. hindi naman basta basta ni re renew yan nang walang notice..

baka kaya nagmahal dahil sa Acts of god (AOG) clause.. check your old insurance.. magkano premium don sa AOG.. check the new one kung magkano premium this time.. walang effect yang claim mo against sa insurance mo.. current market value ang basis nang insurance..

wala ka na magagawa.. na renew na yung insurance mo eh.. tandaan mo na lang para next year.. ask for other quotes 1 month before mag expire yang insurance mo then compare mo sa quote nang in house nang bank.. kung ano mas mababa don ka..

hindi ba nilala ipprice ang insurance based on the history of the car (e.g. accident prone, etc.)? just curious...

**_Qwerty_** · September 29th, 2011 07:06 PM

sa experience ko sir hindi naman.. kahit gano kalaki ni claim mo.. yung insurance based pa din kung ilang years na yung car.. may sinusunod silang valuation for fair market value of the vehicle..

Originally Posted by jazzinmypants

hindi ba nilala ipprice ang insurance based on the history of the car (e.g. accident prone, etc.)? just curious...

**jazzinmypants** · September 30th, 2011 10:42 AM

Originally Posted by _Qwerty_

sa experience ko sir hindi naman.. kahit gano kalaki ni claim mo.. yung insurance based pa din kung ilang years na yung car.. may sinusunod silang valuation for fair market value of the vehicle..

ah.. thanks for the info sir!

**malcoxx** · October 1st, 2011 06:16 AM

+1 on the fact that if you did this after the exact date when your insurance expires, check mate ka sa banko. They will automatically make you pay the absurd premium they are charging. Best to ask if you can pay in terms or PDC if budget is the problem.

Normally there's a letter from the bank / dealership with regards to the insurance two months before your term expires (annually). If they don't get a fax / notice from any insurance company, they automatically charge you for the insurance they are selling.

**migs267** · November 1st, 2011 07:24 PM

Thanks for your comments.. Actually kasalanan ko rin.... Nag inquire ako sa ibang insurance a month bago mag expire yung insurance kaso mahal yung quotation na binigay sa akin so di ko kinuha... SO i assumed the bank will auto renew the insurance in the same insurance company (PIONEER) where the car was first insured...

Nalaman ko na lang na sa ibang insurance (People's General) pala ni renew ng banko yung car... Nalaman ko na lang ito nung nakuha ko yung policy.. Dito ako nainis... wala na akong nagawa.. Kaya lesson learned na sa akin ito... Sa 3rd year ako na talaga mag rerenew ng insurance..