Beware of Insurance Renewal
When I bought my bus last summer my insurance for the year was $2,297 for million dollar coverage from Explorer RV Insurance. This year my renewal went to $3,050 for same coverage with no claims, accidents, tickets, etc. The letter included with the renewal notice said the increase was based on a credit report; not the credit score but an insurance evaluation from the credit reporting agencies.
Called Explorer and the explanation I received was based on a few factors affecting my credit report. First of all, my credit score is over 820 so they know I am not a dead beat. It is based on the fact that I recently applied for a Gander Mountain Credit Card. I made a $1800 purchase and if I opened a Gander Mt. credit card I would save 10% plus receive a $50 coupon for future purchases. Lets see, save $230 on this purchase not a bad deal. It turns out the credit agency held this against me for insurance purposes because I opened a new charge. The bill was paid when I received the cc statement but that does not matter.
Also, they said my debt ratio was very low. I have the ability to make a lot of credit purchases because of available credit to me. It is the fact that I have the ability to do this not that I have done it. They give me a 820 credit score because I pay my bills on time and have little debt then slam me for insurances purposes because of this good history.
Explorer offered to quote me from another company they write for after I complained bitterly about the screwing I just received. Why didn't they do this in the beginning and why did I have to contact them? If they were looking out for me they would have done this in the beginning.
Bottom line, I called Thumb Insurance in Grand Rapids, MI and talked with Sue Ellens and her quote was $200 less than the Explorer quote from the same insurance company. Needless to say, I immediately wrote the $1677 check for the same coverage for a year's worth of insurance.
Last summer there was a lot of talk on this site about insurance and I know several of you are having policies renew in the next few months. I don't like bashing one of our sponsors but it is a buyer beware situation. I saved nearly 50% by changing companies.