Wednesday, April 6, 2011

Auto Insurance - Legal Organized Crime

I've always characterized Insurance as "legal organized crime".  You know it is "legal" and "organized" and, I assert, it is about as close to "criminal" as you can get without there being a recognizable "crime".

Think about it.  If you own a car, insurance is one of a few products you are required by law to purchase.  And it is  also probably the only product, once purchased, you must avoid actually "using" as intended, lest you be punished.  Your punishment will be either withdrawal of the product by the company ("You're Canceled"), increased premiums (We're Raising Your Rates"), or some other other industry devised reprisals ("We Will Be Auditing Your Claims" ; "We Are Placing You Into A Special Risk Category"; "Don't Even THINK About It").

What makes this so frustrating is that my hubby spent over a week doing a very difficult, backbreaking clean-up job for a customer.  It involved over 30 dump runs - 16 tons - of trash and debris left on a property.


Then, someone backed into his work van when it was parked overnight.  (You must know that Leon is compulsive about this vehicles - keeps them in pristine condition, so this was a real blow.)

The probable suspect denies fault and there were no witnesses.  So Leon called our insurance agent at State Farm.  Now, we've always felt that State Farm is one of the better companies out there.  But he was told that because we had another claim within the past year (when my Mazda got totaled) it would be prudent to pay out of pocket for the repair, unless it is $1,000 or more.
The dent doesn't look like much but the Chevy repair shop estimate is $900 give or take, and if the frame is bent, it could be $1,500 or more.  It is over a week's work - out the window.  Most of what Leon earned will go to repair the van.  And we're told to be wary of making an insurance claim.  We'll be flagged.  We'll be punished.  Even though we have guaranteed renewal - the rates will be so high we won't want to renew.  Use your insurance as intended and you WILL REGRET IT.

And I haven't even mentioned HEALTH INSURANCE.

7 comments:

truthspew said...

Health insurance, there is a racket if I've ever seen one.

My health plan for example. I'm on the hook for the first $6,000 even though I'm paying $3K a year in premiums.

So if I have health problems I have to come up with close to the $10,000. Nice huh?

I want nationalized health care in this country NOW, not later. I don't care what they call it, so long as I go to the doctor and I don't pay but a pittance.

Russ Manley said...

What a pisser. Of course the truth is, insurance companies just like banks are not in business to serve the public. They are in business to make profits. Period.

I also agree with truthspew about national health insurance. Which we won't see for another hundred years it seems, until the working people stop voting for their backwoods religious beliefs over their own self-interest.

Trickle Down BS said...

Yeah, don't even go there...health insurance companies are parasites who perform absolutely no gainful function and what the public gets in return is a middle man that skims the profits.
We all agree that it is immoral to make a profit out of people's misery.

And yet, they criticize the Canadian or the British health care system.

goot post bud

saludos,
raulito

Stan said...

Poor Leon. That sucks! I live here in New Jersey where we pay the highest rates in the country. I had State Farm Auto Insurance for nearly over 30 years (since I began driving) and they were charging me more than $1200/year for a fully paid for 1994 Ford Escort (that I bought new and runs like a clock.) That was just for liability no collision coverage. No accidents, no tickets, no points.
I switched to Geico and pay $671/year now with the same coverage. State Farm is one of the worst!

Anonymous said...

I agree, I'va always said the same: ANY insurance is a racket conducted by organized white-collar criminals.

Anonymous said...

if more and more people refuse to buy any insurance, the government will be unable to do anything about it. REFUSE INSURANCE.

FDeF said...

Easier said than done.

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