F...Insurance Companies

[TheMalcolmConnection]

I'm just pissed about how your tickets correlate to what you pay in insurance. I had ONE ticket that doubled my insurance. It was a SIX miles over the speed limit ticket. The place I have gives me a great rate though, but DOUBLE after one ticket. I've even gotten quotes from other places and still this is the cheapest. Insurance sucks.

And jbcjr14 and Matty, I think some people defraud the insurance companies because of that bullshit "deductible". I personally think it's totally insane if your car has some damage done to it and you can't get it fixed. Say in my case, I hit some things that flew off the back of a truck and they said that the estimate to have it fixed is $1000 and my deductible is $750. Since I got this car I've paid well over $4000 in insurance to them and I feel EVERY DAMN CENT should be paid on that damage. I mean that's why I get this stuff. In the case of homeowner's insurance or theft, I can see people padding a bit to make sure they're not losing money on any type of deductible. Sure it's illegal and immoral, but the insurance companies are screwing people too.

[saden1]

I got a speeding ticket (was doing 41mph in a 35mph zone) and a bumper accident ticket within a two week span two years ago and that's all that's in my record. Now, these guys want to charge me a whole lot of money for that? They didn't even pay a cent on the bumper accident. I do understand that people try to screw the insurance company but that doesn't make it right to screw me in return. And the bit about if you aren't married, we are going to charge you more is bullshit to me. That's blatant open discrimination against single males. How can the law let them get away with that?

I'm a reasonable man but $4000 isn't reasonable. I heard NJ is the worst state to be in. You get screwed in insurance no matter what your driving record is.

[saden1]

Originally Posted by TheMalcolmConnection

And jbcjr14 and Matty, I think some people defraud the insurance companies because of that bullshit "deductible". I personally think it's totally insane if your car has some damage done to it and you can't get it fixed. Say in my case, I hit some things that flew off the back of a truck and they said that the estimate to have it fixed is $1000 and my deductible is $750. Since I got this car I've paid well over $4000 in insurance to them and I feel EVERY DAMN CENT should be paid on that damage.

And if the cost comes to $7000 dollars are you willing to pay the extra $2000 out of pocket? What we need is tougher laws and enforcement against insurance fraud to bring the cost down.

[jbcjr14]

Originally Posted by saden1

And if the cost comes to $7000 dollars are you willing to pay the extra $2000 out of pocket? What we need is tougher laws and enforcement against insurance fraud to bring the cost down.

Saden, you hit it right on the head bro! There needs to be tougher laws out there!

Also I think its important to say that insurance is to protect YOU from catastrophic loss. It is not there for the nickel and dime type losses from a windshield crack. It is there when you are riding along and run a red light and smoke a family of 4. In regards to the deductible, you should always have a large deductible $500+ if you can afford to pay the first $500 of a loss. I have always had a $1k deductible and it lowers your premiums drastically. Now if you can't afford to pay the deductible, by all means don't stretch yourself to do so because sure enough a loss will happen.

Also, as an underwriter (pricing) of risk, motor vehicle records are PROVEN statistical indicators. A driver that has had 1 moving violation in the past 12 months is TEN times more likely to have an accident than a driver with no violations. That is a HUGE statistic. Insurance is a numbers game and with odds like this you can bet the pricing is inflated for tickets and the like.

[JoeRedskin]

Originally Posted by TheMalcolmConnection

Say in my case, I hit some things that flew off the back of a truck and they said that the estimate to have it fixed is $1000 and my deductible is $750. Since I got this car I've paid well over $4000 in insurance to them and I feel EVERY DAMN CENT should be paid on that damage.

And would you feel the same way if you had an accident on Day 2 of the policy that cost the insurance company the max in your liability and property damage limits? Would it be okay for the company to come back and say "Well, Malcolm, we know our contract says we have to pay X, but since you have paid only $150 in premiums, that's all we are going to cover. You're responsible for the other 300,000 in damages."?


No, of course it wouldn't. You entered a contract that is, effectively, gambling on future contingencies. The twist is, the company is betting on you (saying that you will pay more for insurance than you will cost them in the future) and you are really just hedging your bets (by buying this insurance at X, I will protect myself from having to pay out Y). Remember, you will still be liable for what the insurance doesn't cover.

Is it possible you will pay out more than you will ever recover - yup. In fact, for most people it's likely - otherwise the insurance companies couldn't remain solvent. But, are you willing to take the risk that you will be lifelong debtor due to an accident that causes serious injuries (either to yourself or others) b/c you were unable to pay the compensation?