It was a year ago last month that the corner of a large brick building crashed into the back of my truck (see pic below). Actually I was backing up in a blizzard and the truck slid on the snow/ice and I bumped into it at about 3-4 mph.
Anyway, damage was estimated at $1600.00. Got a check from the insurance company for $1100.00 along with the $500.00 deductible I had to pay and the truck was fixed. At the same time I learned that I would be getting the inevitable "surcharge" added to my insurance for the next 6 years because the accident was my
fault. So, I filled out the paperwork for an appeal and sent it in along with a check for $50.00 (which was cashed the next day) to the state insurance board. I received a letter from the board a few weeks later informing me that I would be contacted with a date and place for my appeal, sometime in the next 1 to 2 years
. Sure enough, my insurance went up an additional $500.00 per year with the included surcharge. How nice.
Fast forward last month and I got notice in the mail that my appeal hearing would be on Friday, February 3rd at 12:00 in Worcester County Courthouse. I brought photos with diagrams I made on my computer (you know they looked pretty cool) and in a nutshell, before I could even explain what happened the board said I won. He could not believe how well I prepared my "case". I will be receiving notification of my surcharges being dropped, the accident off my record and any money I've already paid towards my surcharge would be refunded by the insurance company. Sweet all around! And I'll get my $500 back too (we already paid for this years insurance).
But here is the "doesn't seem right" part:
Let's say I did not
win the appeal and had to pay the $500 surcharge every year for the next 6 years, that's $3,000. Then add the $500 deductible I also paid and that's $3500. It only cost the insurance company $1100 to fix my truck. So that's $2,400 EXTRA
money that is going into the insurance company's pocket. Again, that's $3500 out of my pocket, and $2400 is extra cash for the insurance company. But the repair only cost $1600.00
Am I missing something? This just doesn't seem right to me. And keep in mind that I've been driving for more than 38 years without so much as a parking ticket. I've never
filed any claim through any auto insurance company. Can you imagine how much I've paid for auto insurance over the past 38+ years?
As I said, this just doesn't seem right!