Will AAA refuse to renew my policy or increase my rates after 4 claims?

Seeking Advice
1

I recently switched to AAA insurance, but I’ve been a AAA member for about 5-6 years. Unfortunately, in my first year with their insurance, I’ve had four claims:

  • Two instances of vandalism (one resulting in $14k in damages)
  • Two hit-and-run incidents while my car was parked (one with damages over $5k)

All of these were not my fault, and the car was parked in every situation. I live in California, where I know there are laws limiting what insurers can do in terms of rate hikes or cancellations for claims that weren’t your fault.

Should I be worried about a rate increase or a refusal to renew my policy? Has anyone been through something similar?

2

Four claims in one year is a lot. Even if they’re not your fault, insurers might still view you as high-risk. They could increase your premiums significantly, though California does have laws to limit increases for not-at-fault claims.

What city are you in?

3

@Clarke
I’m in Los Angeles.

4

Hux said:
@Clarke
I’m in Los Angeles.

Makes sense, LA is notorious for this kind of stuff. But hey, AAA probably handled the claims really well, right?

5

@Clarke
In California, insurers can’t raise your rates for not-at-fault collisions. You might be safe in that regard.

6

Amari said:
@Clarke
In California, insurers can’t raise your rates for not-at-fault collisions. You might be safe in that regard.

True, but California has had massive rate increases overall in the past couple of years. My rates are up 66% over the last two years, so don’t expect things to stay cheap.

7

Insurance companies are all about assessing risk. Even though none of these claims were your fault, they’ve had to pay out a lot of money in a short amount of time. That makes you a higher-risk customer. I wouldn’t be surprised if they decide not to renew your policy.

You might want to start shopping around for other insurers just in case.

8

@InsureInsight
I understand that, but California has pretty strict laws about what insurers can raise rates for or cancel policies over. When I filed my last claim, the AAA rep told me these wouldn’t affect my policy since they were all out of my control and happened while the car was parked. Was that not accurate?

9

@Hux
It’s true that California limits rate increases or cancellations for not-at-fault claims. However, those protections don’t necessarily apply to renewals. Insurers aren’t obligated to renew your policy if they decide you’re too high-risk. The rep might have been honest about your rates not going up, but that doesn’t stop them from declining to renew once your policy ends.