[JoeRedskin]

I work as an state attorney that regulates the insurance industry. For those who bitch about insurance, first understand what it is.

It is based on risk pools and characteristics and math. Statistics cannot say for certain what any one person will do, but they can predict with GREAT accuracy what a well defined group will do if the group is large enough. So - even if you, as a single male, haven't caused any accidents - the statistics show that, historically, for every x number of dollars in premium collected from single males, the insurance company will pay y amount in claims. The key for insurance companies, of course, is to find the point where x>y.

Your past claims affect your future costs b/c, based on acturially justified statistical basis, people who have past claims (even if the past claims cost no money) are likely to COST more in the future (like it or not, it is a statistical truism).

As for padding your claim to cover the deductible - Well, the rate you pay is based on the deductible you claim. You want coverage from dollar 0, well then pay for it. By padding your claim, you only drive EVERYONE's insurance rates higher. Because, by doing so, you render the actuarially justified rate (i.e. people with a deductible of x, make cost us no more than y) inaccurate and the company must reevalute and refile its rates (btw, incurring more costs increasing premiums more).

Do companies fail to pay claims for no good reason? Sometimes, usually its the smaller companies trying to scrape by - they tend to be fast and loose with their contract terms. The larger ones will sometimes screw you over to, usually when you fall into a company's Kafkaesque bureaucracy.

The key is - you are buying a product. The seller of that product is a) trying to make a profit; b) highly regulated; c) relies on statistical evidence to PREDICT what you will cost them in the future.

Please don't misunderstand, I think companies often try to cut corners in the name of good business and sometimes do so to the detriment of their customers (Admit it - "collect money, pay none out" is an exellent business plan if you can get it to work). Generally, though, they rely on their contracts and statistics to try and find the most attractive product for their customers.

In general, understand what you are buying, read your contract, shop around.