American Family InsuranceCREDIT BASED INCREASES--AMERICAN FAMILY

K
This review was posted by
a verified customer
Verified customer

I would like to file a complaint against American Family Insurance and their practice of using Credit Based Insurance rate increases. I have been a loyal customer for over 10 years and I've only had a hail damage claim, no accidents, and no tickets or other violations. I do not have gaps in coverage and I have always paid my premiums. I feel like the law is allowing insurance companies to take advantage of people like me who have low credit scores by charging higher premiums. My credit was affected when I became disabled and was no longer able to work. It took 2 years before I started receiving disability income so I had no way to pay my bills. I am not a 'high-risk' driver, I only drive within a 6 mile range of my home, and that is only to go to the closest Wal-Mart once or twice a month. The rest of my driving is within less than one mile from my home. I only put about [protected] miles on my car per YEAR. I have no negative driving record. I only had 2 tickets when I was 16--20 years ago! Believe me, I paid for those tickets in high premiums back then. I feel that it is totally unethical to charge insured customers like me a higher rate suddenly and charge me with being 'high-risk' when I have done nothing to ever deserve that label. I pay all of my bills on time and in full every month and I have nothing negative on my credit showing otherwise for any period in the past several years after my disability. This issue of using a credit score to raise my rates is ridiculous and considering that I live on $1, 000 a month, paying extra insurance is not conducive to making it easier to pay bills and have good credit!

Responses

  • Wi
    Witness Nov 15, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I know someone who had full coverage insurance with American Family insurance. Their car was vandalized while sitting on a car repair shop's lot. The car repair shop did not have car insurance for their lot which is not required in the state of Missouri. When the owner of the car called the American Family Insurance to report that the car was involved in vandalism, the American Family claims adjuster failed and did not even bother to come out to the scene of the crime where the car was left sitting there on the parking lot of the car repair shop to photograph the car or view the surrounding area where the crime occurred.
    That means, that they missed seeing the other cars in the parking lot that were also vandalized, the wooded fence and the wired fence that surrounded the lot and the other side of the car repair shop that was not fenced in.
    Once American Family finally had the car was towed off of the lot where it was vandalized, and taken to another car repair shop for an estimate on the damages, American Family Insurance picked out just one thing to fix, and accused the owner of the car of having a collision that was not remembered and that is where the other damages came from in order to scam out of fixing all of the damages.

    The only amount of money that American Family Insurance put out was less than $100.00. They also, hid the other damages from the car owner when speaking with the owner on the phone. Both American Family Insurance and the car repair shop told the owner that her car was ready and repaired ready to be picked up.
    When the owner got there to pick the car up, only a portion of the damages were repaired while the other damages were left not repaired. Everyone in the American Family organization agreed to the first person, not anyone of them spoke up for the truth.
    Scamming on their own clients...horrible insurance company they need to shut down...They did not even do a diagnostic test on the car after it was vandalized to determine all damages that occurred.

    0 Votes
  • Co
    Connie Apr 29, 2009

    Same thing happened to me... Except that MY rates were raised because I divorced my husband!!! What in God's name does this have to do with my EXCELLENT driving record??? I have had American Family insurance for more than 20 years, with 1 claim back in 1994, when a 95 year old guy broadsided my car when he failed to stop for a stop sign. I will say that American Family stood behind me all the way then. When I called to find out why my rates have been raised I was told married people are more responsible! *@*&#%* Mind you...I am not a kid with a penchant for racing. I am 60. I have had no violations or accidents. This is VERY UNFAIR. I have worked for the same company for 35 years, and pay all my bills on time. How much RESPONSIBLE do they need???

    0 Votes
  • Da
    darlene harris Aug 18, 2010

    i may not have the best credit rating, but i have been with this company for 30 years and have made only 3 claims, one for a theft loss while i lived in an apartment, one glass claim for the car and hail damage to the home after i was married. they have now increased my insurance premium to an unbelievable amount due to the credit history. i have never filed bankruptcy, always paid the bills, dredit card debt including any fees. and still have this outrageous premium. this is like stealing from the customer/ consumer. The state of MN has allowed this to happen to many consumers. The Dept of Insurance needs to take a closer look at this and have the underwirting departments be reviewed for this activity. This affects all of us, who don't make claims.

    0 Votes
  • Lh
    LHW Apr 15, 2011

    State Farm Ins. sheck them out

    0 Votes

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