OT: Insurance company ripoff
04-09-2012, 07:16 AM
#1
AudiWorld Super User
Thread Starter
OT: Insurance company ripoff
This is off topic, so if you're not interested, don't bother reading it.
In November 2011, I was involved in a small "fender bender" automobile accident. I accidentally backed into a parked car on a dark, misty morning, causing a small dent. I left the person a note on her car to contact me. Because of an inflated estimate by her body shop, the cost to repair the damage was slightly over $2,000. My car received only a small paint scrape on the rear bumper. Since I have $500 deductible, my insurance company ended up sending me a check for $34. <!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w
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Now my automobile insurance company, Commerce Insurance Co., has imposed upon me a surcharge of $600 a year for the next six years, which will amount to almost double of what it cost to repair the damages.
How can Massachusetts lawmakers allow automobile insurance companies to get away with ripping off the public like this? If any other industry (i.e.: Banks) charged its customers an outrageous fee like this, there would be such an uproar among the public that lawmakers would scramble to come down hard on the banks. Or there would be a public boycott of the bank.
A friend of mine told me that I should have paid for the damages out of my own pocket. Why should I have to do that when I make monthly payments to an insurance company to protect me? But what is the point of having auto insurance if whatever settlement the insurer pays out, the customer has to pay them back twofold?
I would like to point out that I have been a customer of Commerce's for 20 years, have never missed or been late on a payment, and have never made a major claim with them. I would love to drop them now, but my agent informs me that the "points" I got from the accident will follow me to any insurer I choose to go with.
This accident occurred at 5 a.m., and the owner of the car was fast asleep. I chose to be honest, and take the blame for it. But now I'm wondering if honesty is always the best policy.
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In November 2011, I was involved in a small "fender bender" automobile accident. I accidentally backed into a parked car on a dark, misty morning, causing a small dent. I left the person a note on her car to contact me. Because of an inflated estimate by her body shop, the cost to repair the damage was slightly over $2,000. My car received only a small paint scrape on the rear bumper. Since I have $500 deductible, my insurance company ended up sending me a check for $34. <!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w
oNotOptimizeForBrowser/> </w:WordDocument> </xml><![endif]-->Now my automobile insurance company, Commerce Insurance Co., has imposed upon me a surcharge of $600 a year for the next six years, which will amount to almost double of what it cost to repair the damages.
How can Massachusetts lawmakers allow automobile insurance companies to get away with ripping off the public like this? If any other industry (i.e.: Banks) charged its customers an outrageous fee like this, there would be such an uproar among the public that lawmakers would scramble to come down hard on the banks. Or there would be a public boycott of the bank.
A friend of mine told me that I should have paid for the damages out of my own pocket. Why should I have to do that when I make monthly payments to an insurance company to protect me? But what is the point of having auto insurance if whatever settlement the insurer pays out, the customer has to pay them back twofold?
I would like to point out that I have been a customer of Commerce's for 20 years, have never missed or been late on a payment, and have never made a major claim with them. I would love to drop them now, but my agent informs me that the "points" I got from the accident will follow me to any insurer I choose to go with.
This accident occurred at 5 a.m., and the owner of the car was fast asleep. I chose to be honest, and take the blame for it. But now I'm wondering if honesty is always the best policy.
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04-09-2012, 11:48 AM
#2
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I feel your pain...
Did you get a quote if you didn't go through insurance? When I did that my quote to get my bumper fixed...
insurance price $1100.00 before my $500 deductible so insurance Company pays $600, I pay $500
non insurance price $280.00 and I walk away. same shop...the outsourced it and I went straight to the source...after they told me who it was when I said no insurance claim
My understanding... insurance is for big problems I cannot afford...little problems I resolve out of pocket.
And yes you did the right thing...hit and runs are never good and you could end up in bigger messes... like with the authorities.
'10 A4 S-line 6-speed
'81 CJ7 4" Lift
'07 STi Stage 2
'01 S4 6-speed Stage 3+
'01 S2000 S/C
Did you get a quote if you didn't go through insurance? When I did that my quote to get my bumper fixed...
insurance price $1100.00 before my $500 deductible so insurance Company pays $600, I pay $500
non insurance price $280.00 and I walk away. same shop...the outsourced it and I went straight to the source...after they told me who it was when I said no insurance claim
My understanding... insurance is for big problems I cannot afford...little problems I resolve out of pocket.
And yes you did the right thing...hit and runs are never good and you could end up in bigger messes... like with the authorities.
'10 A4 S-line 6-speed
'81 CJ7 4" Lift
'07 STi Stage 2
'01 S4 6-speed Stage 3+
'01 S2000 S/C
Last edited by ghag_S4racing; 04-09-2012 at 11:52 AM. Reason: Sign it
04-09-2012, 05:26 PM
#3
AudiWorld Super User
Thread Starter
Insurance quote
The woman whose car I hit lives in Connecticut, I live in Massachusetts. She was not about to get her car fixed in Mass. ($42 an hour labor vs. $52 an hour in Conn.) because she wanted it to be convenient for her -- close to her home, job, etc.
If I had known I was going to get socked for six years of surcharges, I would've driven down to Connecticut and paid her bodyshop (a car dealership, by the way) the money out of my pocket.
What I can's understand is that when Bank of America tried to impose a $5 debit card fee, everybody went ballistic. But when an insurance company penalizes you thousands of dollars for making a claim, nobody says anything. Curious.
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If I had known I was going to get socked for six years of surcharges, I would've driven down to Connecticut and paid her bodyshop (a car dealership, by the way) the money out of my pocket.
What I can's understand is that when Bank of America tried to impose a $5 debit card fee, everybody went ballistic. But when an insurance company penalizes you thousands of dollars for making a claim, nobody says anything. Curious.
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04-09-2012, 06:23 PM
#4
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This is off topic, so if you're not interested, don't bother reading it.
I would like to point out that I have been a customer of Commerce's for 20 years, have never missed or been late on a payment, and have never made a major claim with them. I would love to drop them now, but my agent informs me that the "points" I got from the accident will follow me to any insurer I choose to go with.
I would like to point out that I have been a customer of Commerce's for 20 years, have never missed or been late on a payment, and have never made a major claim with them. I would love to drop them now, but my agent informs me that the "points" I got from the accident will follow me to any insurer I choose to go with.
04-09-2012, 06:27 PM
#5
AudiWorld Senior Member
... Now my automobile insurance company, Commerce Insurance Co., has imposed upon me a surcharge of $600 a year for the next six years, which will amount to almost double of what it cost to repair the damages.
How can Massachusetts lawmakers allow automobile insurance companies to get away with ripping off the public like this?
How can Massachusetts lawmakers allow automobile insurance companies to get away with ripping off the public like this?
If I were you and you wanted to take this up w/ someone, make your complaints to the State's Attorney General, the BBB and the FTC. When the AG gets involved, **** usually happens.
04-09-2012, 06:28 PM
#6
California voters can pass their own laws, and they passed Prop 103 that prohibited rate increases for 1 accident and one ticket. It also provided for any increase to be only for three years.
What happens when you tap a parked car is the other party uses that excuse to get the whole car redone. The flat rate manuals are generous with the time and materials charges so a door ding is worth a couple of grand, vs the 200 bucks you would pay a panel beater to refinish it.
What the insurance companies have done is they now overcharge you for the "regular" rate and pay you a "policy dividend" if record is clear. One ticket or accident, and you loose the "dividend." So they are collecting a surcharge through a legal manipulation. If you get a second ticket or accident, then they add a surcharge on top of that.
You cannot fight them by firing their tokus, because the new company is allowed to use the same law evasion technique against you.
As long as the manufacturers, politicians, body shops, and insurance companies sleep in the same bed, we are the ones being screwed.
What happens when you tap a parked car is the other party uses that excuse to get the whole car redone. The flat rate manuals are generous with the time and materials charges so a door ding is worth a couple of grand, vs the 200 bucks you would pay a panel beater to refinish it.
What the insurance companies have done is they now overcharge you for the "regular" rate and pay you a "policy dividend" if record is clear. One ticket or accident, and you loose the "dividend." So they are collecting a surcharge through a legal manipulation. If you get a second ticket or accident, then they add a surcharge on top of that.
You cannot fight them by firing their tokus, because the new company is allowed to use the same law evasion technique against you.
As long as the manufacturers, politicians, body shops, and insurance companies sleep in the same bed, we are the ones being screwed.
04-11-2012, 08:27 AM
#7
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i feel your pain, i have been an insurance agent for 18 years, i started when i was 18 ;-) , im not the an old guy with a briefcase.
because of the state of the economy insurance companies are very closely looking at claim frequency not just the driving record. theres a lot of fraud out there. on average it cost an insurance compny 500 to settle a claim, we never think of that. insurance compies have tiers based on a lot of factors and thats probably what happen to you, your now in a diffrent one.
usually the longer you stay with a compny the better. you you call a company and make a report it goes to places like carfax even if they dont pay. sometimes its better just to pay it yourself.
i understand your grief i am a cunsumer too, i may not tell you what you want to hear but thats how it is....
because of the state of the economy insurance companies are very closely looking at claim frequency not just the driving record. theres a lot of fraud out there. on average it cost an insurance compny 500 to settle a claim, we never think of that. insurance compies have tiers based on a lot of factors and thats probably what happen to you, your now in a diffrent one.
usually the longer you stay with a compny the better. you you call a company and make a report it goes to places like carfax even if they dont pay. sometimes its better just to pay it yourself.
i understand your grief i am a cunsumer too, i may not tell you what you want to hear but thats how it is....
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04-17-2012, 08:28 AM
#8
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I think it is better if you pay it out of your pocket since it is a small accident and will lessen your cost in paying for your insurance. You have been a member for 20 years, if you are not satisfied on their services try to get a quote from other insurance companies. Cost of insurance sometimes brings you headache than giving you a comfort.
04-17-2012, 06:02 PM
#9
AudiWorld Super User
I feel your pain. I also live in MA and my insurance company works the same way. If you make a claim (home or auto) they penalize you on your premium for a period of time. I have high deductibles on both house and car for that reason ($1000). I'd rather pay out of my own pocket for a claim than incur a surcharge on future years and at the same time, have a lower premium. I look at my policies as calamity insurance for a large loss. I believe my policies incur the surcharge for three years vs five after a claim. They don't call it Taxachusetts for nuthin'. At least we had a significant drop in premium cost about 4 or 5 years ago when they dropped some of the state pricing regulations. Mine went down about 25% at that time.