I just received a letter in the mail form my insurance company (Farmers):<br /><br />"Your new policy reflects the removal of Residual Debt coverage" ... The reduction of coverage is due to this being the first renewal following the vehicle's 4th. model year. (2001 Ranger XLT 4x4)<br /><br /><br />To make a long story short... Farmers DOUBLED my insurance premium.<br /><br />I don't know much about auto insurance other than it's required in my state... I get the required minimum and pay that. <br /><br />My driving history is excellent; no accidents or tickets (well.. one ticket, but it's 4 years ago and a minor one at that) My credit is also perfect.<br /><br />I've been with Farmers for well over 10 years and I have my home insured with them as well.<br /><br />I'm told this 'residual coverage' has something to do with the replacement cost of the vehicle if it's totaled within those first 3 years.<br /><br />Is this true?<br /><br /><br />Needless to say.. I'm more than upset at Farmers for doubling my insurance.<br /><br /><br />I'm looking for another insurance company. Any suggestions?<br /><br />H.
<br />I don't know how our rates compare to the rest of the planet, but I'm sure it's near the top.<br /><br />What peeves me is they base your rates on your AREA and credit score... NOT you - the driver.<br /><br /><br />The residual debt coverage has something to do with the direct replacement cost of the vehicle within it's first 3 model years if you were to total it.<br /><br />If I understood an insurance agent I spoke with this evening, this is a federal thing some insurance companies use. Kinda like a debt right-off or something.<br />If you totaled your car in the first 3 model years, the insurance company can get some (or all) of the loss back via the feds...<br /><br />Think of it as mortgage insurance?<br /><br />I may be mistaken... but bottom line is... after 10+ years of being a model customer with them... they do this. I have to wonder what they would have done if I had a large claim?<br />