"Defective Equipment" and Insurance Rate Going Up

[eddie83]

I live in Virginia and it's time to renew my auto insurance policy by the end of this month with Progressive, and I've got a "Defective Equipment" charge coming back from 3/8/2010 causing my rates to go up. I am not sure why this is causing my rates to go up because its not a moving violation and it carries no demerit points with DMV. The charge is vague and could mean anything really...from a taillight out, to a hanging exhaust, to a bent wheel, to even a headlight out.

I'm going back and forth with the insurance company about this because its rediculous that this kind of charge would cause an increase in my rates. They stated that this info came from a C.L.U.E. report...I know what a C.L.U.E. report is and its pretty much a bunch of reports in one including my Motor Vehicle Report, which is where they are getting the "Defective Equipment".

I spoke with a lawyer that I know from a few years back on a seperate traffic case, and he even mentioned that he thinks it's a lie to have rates go up for this sort of charge. He also advised to look for different insurance which I would rather not do, simply because it does not seem right and if they raise my rates for it, then they are raising other peoples rates who have the same charge

Any help is appreciated, thanks in advance.

[Mr. Knowitall]

If you don't like your insurance company's rate-setting policies, as you were told, you are free to shop around for a better rate.

I have no idea what you mean by it's being "a lie to have rates go up for this sort of charge". A lie is a false statement. Did you mean to use a different word?

[eddie83]

Yes, I basically meant a false excuse. I think I am going to shop around, I have until the end of this month.... This was an email I sent to my insurance, its long but it may give some sort of background about where I am coming from


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I’ve got a problem with my renewal policy. There is a charge from 3/8/2010 “Defective Equipment” increasing my rate for renewal. I have a copy of my MVR and my C.L.U.E. report and both reports state nothing about “Defective Equipment”. The charge on my MVR is “Improper Equipment”. First of all, this charge in no way affects my ability to drive a vehicle, this is not a moving violation, nor does it assess any demerit points (yes, I know you do not control demerit points) with the DMV. This type of charge is not a result from speeding, an accident, collision, or comprehensive claim. This is simply an equipment charge and is only an Infraction with the state of Virginia. It is absurd that this charge is essentially “upgraded” to a different charge that would make you guys profit.

This same thing happened when I first started my policy with Progressive ending in -0. There was a violation that I received on 3/17/2007 for “tinted windows”. You guys had essentially “upgraded” this as well to “Defective Equipment” at the start of my business with you guys (during policies -0 and -1) to make you guys profit. I was given two refunds after questioning this, and it was taken off my policy because this did not effect my ability to drive a vehicle, this was not a moving violation, nor did it assess any demerit points (yes, I know you do not control demerit points) with the DMV. This type of charge is not a result from speeding, an accident, collision, or comprehensive claim. Two refunds were issued during policy ending in -1. The first was the full refund for this charge ending -0 and the second was pro rated for policy ending in -1 because I questioned this during policy ending in -1.

There seems to be a “Defective Equipment” bucket being used at Progressive. It’s one of those buckets where charges such as “All Other” or “Miscellaneous” essentially get “upgraded” that would result in some profit for the company. It’s the type of charges that basically have no specific category to be placed, or have no guidelines according to your own specific “Insurance Point System”.

At this point it does not look like I will be renewing with Progressive and will be taking my business elsewhere. It’s always a great experience to start business with Progressive, but after awhile your system gets a little twisted. I had business with Progressive before my current policy ending in -0 and left due to your price increases. I decided to give you guys another try, now once again it is your twisted system that will be losing a customer.