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Questions About Auto Insurance & Accidents

5325 messages,  Last post on May 09, 2013 at 1:37 PM

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Messages Page 522 of 534

#5202 of 5325 Re: POP QUIZ [steve_] by igozoomzoom

Jan 28, 2013 (9:47 am)

Replying to: Stever@Edmunds (Jan 27, 2013 9:09 am)
As an Insurance Agent (Independent), I have customers ask me if/when I think they should cancel their Physical Damage Coverage (aka- Comp & Collision). Something that I always do before I let a customer drop or reduce coverage or reduce their level of coverage, is to explore ALL of the possible options they have and figure out just how much (or how little) they would save by choosing each option/change.
 
The most common change I end up making, if any, to the policies of customers with older, low-value cars is to drop the Collision coverage but KEEP the Comprehensive! On average, Collision costs more than twice as much as the Comp coverage on a policy. So if Comp costs $100 per year, Collision will be over $200.
 
Collision pays to repair your vehicle when it is damaged and YOU are at-fault. 99.9% of Collision claims are caused by crashing into another vehicle or leaving the roadway and crashing into a ditch, a forest or even crashing into a building! If the policyholder hasn't had an at-fault accident in the last five years, they probably won't be needing Collision coverage for a very long time, if ever!
 
Comprehensive (aka- Other Than Collision) covers numerous different situations, but Comp claims are almost always considered 'Not-at-fault' for the policyholder. Comp covers theft, weather damage such as hail/wind or flooding, fire damage, falling objects or objects thrown up from the road surface (rocks, etc.) and all glass breakage. Even if glass is broken as the result of an at-fault accident that Collision pays to repair, any glass broken in the collision would be replaced or repaired under the Comp coverage.
 
One of the great mysteries of auto insurance is why a "collision" with an animal falls under Comprehensive? At least it benefits the consumer, especially her in rural North Georgia where Bambi gets mowed down on a daily basis during their most active season.
 
By keeping the Comprehensive and dropping Collision, the customer is still protected from situations that they can't control. Some insurers won't allow you to have Comp without Collision, but MOST of them will.
 
During these types of reviews with a customer, I also calculate the amount would save by increasing Comp and/or Collision deductible(s). Once a vehicle is 7-8 years old and has 150k miles on it, increasing a $500 deductible to $1000 will save $30-$40/year, at best. So it's not worth assuming an additional $500 in risk to save $30. It's quite a different story when the car is new, that deductible change will save hundreds per year.
 
Another point I always mention (more than once, if possible) during this type of cost-reduction discussion is the types of coverage that should NEVER be decreased or dropped to save a buck!!! Do NOT reduce your Liability Limits, which is what pays for the other guys vehicle and injuries if you are at-fault. The only way that type of coverage should go is UP...once you hit 100/300/100, additional increments cost so little it's hard to believe! On my personal auto policy, I have limits of 500/500/100 (more than most people) and I pay $160.10 for the Bodily Injury (500/500) and $74.20 for the 100k Property Damage. If I lower the BI from 500/500 down to 100/300, it would cost $148.50/year. So several hundred thousands in additonal coverage cost me $11.60 per year! Dropping the 100k in Property Damage down to 50k would make it $72.80/year, so for half the coverage I'd save $1.40/year!!!
 
The other type of coverage that you should NEVER drop or reduce is Uninsured and/or Underinsured Motorist Coverage! If you carry 500/500/100 to protect other drivers that you don't even know, it only makes sense to carry the same level of protection for you and your passengers. Depending on which state you're in, anywhere from 16% to 28% of drivers are UNSINURED- so now, more than ever, it's essential to have coverage to protect you from people who choose to break the law and drive with no insurance!

#5203 of 5325 Re: POP QUIZ [igozoomzoom] by sandman_6472

Jan 28, 2013 (11:23 am)

Replying to: igozoomzoom (Jan 28, 2013 9:47 am)
Curious about your thoughts on Metlife? We have 21st Century(Farmers) right now but am making a change. My new agent seems to like Metlife to.
 
The Sandman

#5204 of 5325 Re: POP QUIZ [igozoomzoom] by euphonium

Jan 28, 2013 (11:43 am)

Replying to: igozoomzoom (Jan 28, 2013 9:47 am)
One of the best posts to appear. Clear & concise for the reader.
 
As a retired Independent Agent, I'm curious to know what your agency's 2012 Loss Ratio is?
 
The annual Profit Sharing bonus is always appreciated, but earned.
 
Losses due to arson & UM should not be held against the agency's loss ratio, penalizing the profit sharing.
 
I used to suggest that 5% of the bonus could be waived if the company excluded arson & UM claims. Never had any takers.

#5205 of 5325 Re: POP QUIZ [igozoomzoom] by Stever@Edmunds HOST

Jan 28, 2013 (4:13 pm)

Replying to: igozoomzoom (Jan 28, 2013 9:47 am)
I wish my agent was as sharp as you. Maybe I should go to the one other guy in town for a check.
 
Michigan has weird insurance laws too.
 
I'm carrying everything on two old cars that may be worth $2,000 and $3,000 each. Usually I would have dropped collision long before now. My limits are 250/500, PPI of 1 million and "coordinated" PIP. Premium is right at $1,000 a year. About twice what somewhat similar coverage in Boise was.
 
Crap, just noticed I'm now getting the senior discount. Talk about adding insult to injury.

#5206 of 5325 Re: POP QUIZ [euphonium] by marsha7

Jan 28, 2013 (7:52 pm)

Replying to: euphonium (Jan 27, 2013 9:57 pm)
"What can be done about using all of the PIP benefits of the policy to take advantage of Chiropracter massages and when the limit is out of gas, the patient is suddenly without any more pain? Claimants work the system if they can."
 
I must disagree...I have had many clients get more pain relief from chiropractors than the drugs the MDs give them...you would be amazed how many folks say that the pain pills and muscle relaxers not only did not work but made them loopy at the same time...
 
When it comes to the standard whiplash type injury, the chiropractor is about the best there is...obviously, broken bones, lacerations and other ultra serious injuries require medical care, but soft tissue injuries are best handled by the DC...

#5207 of 5325 AARP Mature Drivers Course by sandman_6472

Jan 28, 2013 (8:19 pm)

We've taken this class twice now and supposedly it helps to lower one's insurance bill. Good class actually which must be taken every 3 years. This last time we did it in 2 days and it wasn't that bad...really. We were the youngest in the class though...a good thing! Great instructor who happens to live where another poster in Edmunds lives. Figured "what the hell"...take it and see if the bill goes down a bit. And "she that must be obeyed" signed us up!
 
The Sandman

#5208 of 5325 Re: POP QUIZ [steve_] by houdini1

Jan 29, 2013 (8:52 am)

Replying to: Stever@Edmunds (Jan 28, 2013 4:13 pm)
I still remember my shock and dismay when a young lady at a Hardee's drive-thru window advised me, with a big smile, that she had included my senior discount in the price. That was 14 years ago. I was 56 at the time and still thinking I was somewhat of a stud !!

#5209 of 5325 Re: POP QUIZ [sandman_6472] by igozoomzoom

Jan 30, 2013 (2:54 pm)

Replying to: sandman_6472 (Jan 28, 2013 11:23 am)
Curious about your thoughts on Metlife? We have 21st Century(Farmers) right now but am making a change. My new agent seems to like Metlife to.
 
My agency sold MetLife Auto for years and, due to excessive losses and the unstable economy, MetLife decided to stop selling new policies in Georgia. That happened in early 2010, about six months before I started working there.
 
They only put a moratorium on NEW business, so they didn't just dump their existing customers in Georgia. They still offer renewals each year to those customers and will continue to do so. Most companies just give the required legal notice- in XX days we're leaving this market and you need to find new coverage!
 
From what I've seen, they handle auto claims quickly and fairly. The other two Personal Lines agents in my office said they've never had a single complaint about MetLife!
 
But even if I didn't know anything about MetLife, I would still say that you made a good move leaving 21st! As an independent agent, I deal with a lot of companies when one of my customers is involved in accident with one of their policyholders, especially when the other guy is at-fault. My brother in-law manages a Honda/Acura body shop and has been in the body repair business for 22 years. You wouldn't believe some of the stories he tells me about all the shady things some companies (or certain adjusters) do.
 
There are some insurers who are all smiles and rainbows to their customers, but they treat body shops and everyone else like dirt! A lot of them also treat third-party claimants (the not-at-fault drivers that their customers crash into or run over) like criminals and make every step of the claims process as painful as possible!!!
 
21st (and all Farmers companies) fits the description above, although they are not the WORST. There are two companies that vie for the title of WORST Auto Insurance Company in America! They also happen to be the two companies with the greatest market share in the country. Satan himself wouldn't work for either of them for ethical reasons!!! =)
 
Here's a link to the Top 25 Auto Insurers by market share in the U.S. and you can see the companies I'm referring to in the top two spots-
 
http://www.insure.com/car-insurance/largest-auto-insurance-companies-by-market-s- hare.html
 
Needless to say, they are NOT "Like a good Neighbor" nor are you in "Good Hands" with either one! I have an intense hatred for the one in the top spot- (rhymes with Fate Harm)- based on my own hellish experiences when one of their customers caused an accident with me, my mom and several of my customers.
 
I could go on for hours and tell you just a fraction of my experiences with them, but I'll save some for my book that I'll never write about them.....
 
But I will share this- my step-dad had insurance with State Farm from the age of 16. Between the ages of 16 and 62, he had one Comp claim foir around $8000 in 1994 (car stolen) and a $2300 Hit-and-Run claim (Wal-mart parking lot) for $2100 in 2010. My mom has also been insured on his policy for the last 22 years. She has never had a claim or ticket and he has no tickets in over 7 years.
 
In August 2011, after they denied a hail damage roof claim (which they eventually paid in full, after I hired an independent appraiser to challenege them), my step-dad finally agreed to leave SF and let me insure them with a company that I trusted. They were paying $2641/year for auto insurance with SF and had varying levels of coverage from one car to the next. Auto-Owners Insurance Group covered them for $1426.95 and increased their liability limits from 100/300 to 500/500, increased their Uninsured Motorist form 25/50 to 250/500 (10x) and gave them $100 Comp and $500 Collision Deductibles. I saved them over $1200 per year and increased their coverage exponentially. Adding insult to injury, the new insurance company is consistently rated among the top THREE auto insurers for Claims satisfaction! =)
 
Sorry, I got off on a rant there, huh?

#5210 of 5325 Re: POP QUIZ [igozoomzoom] by sandman_6472

Jan 31, 2013 (5:59 am)

Replying to: igozoomzoom (Jan 30, 2013 2:54 pm)
Thanks for the great info...I feel really good about Metlife and the policy price went down even more once I faxed over our mature drivers course certificates. The new agent seems to be a very nice guy and he's even going to come over to inspect the cars himself without me shlepping over to see him...know that's customer service! The quotes I got from the big guys were outrageous and even my own man who has taken care of us for maybe 20 something years was of no help and quoted a price 1 and 1/2 times more for the same coverage. We got the new agents name from a co-worker of my wife who's very pleased with his service. I have to agree...great customer service!
 
I also like the idea that our rates are guaranteed for one year and we only have to do the whole bit once...just one less thing to take care of. And the ease & simplicity has been a real eye opener. And one last thing...you should write that book or relate some stories in here or the Chronic Car Buyers forum, think we'd all get a good laugh and possibly learn a thing or two about the insurance business!
 
The Sandman

#5211 of 5325 Re: POP QUIZ [igozoomzoom] by houdini1

Jan 31, 2013 (12:43 pm)

Replying to: igozoomzoom (Jan 30, 2013 2:54 pm)
That's the thing with these shysters. They are great until there is a claim. Thanks for the good info.

Messages Page 522 of 534

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