What's the deal with insurance?

[tommy]

Sometimes i can't help but feel I'm being robbed by these insurance companies who love to take your money month after month for doing absolutely nothing and then after many years have gone by when i would submit a claim or maybe two these people have the right to tell me to take a hike because the had to pay out a few thousand dollars after me paying them tens of thousands of dollars for decades.

What's even worse is that the insurance companies have the law and government behind them to force me to pay them my hard earned money or i cannot live a real life with a house and car that i have provided from my hard work over the years. I have no problem paying these ridiculous insurance fees (  ) but at the drop of a hat because they had to pay out a few dollars more than they would like and having the right to cancel me is a crime i cannot live with. I pay these people to cover me and what i get in return is them pushing me away after profiting from me.

I wish i could start a business that had the power of a strong government that would force people to buy what i was selling or people would lose what they have worked for if they did not pay and were treated like garbage for no apparent reason.

Insurance companies getting rich while good Americans lose their ass is not my idea of the American way.

[GreenKnight37]

I work for an insurance company.  I know people don't love to pay the premiums.  Many of you will rarely need to file a claim, which is a good thing for all parties. 

We don't want you filing claims, we have to make some money to operate (we store the majority of profit as future claim reserves...its never pure profit)  We don't want you to file a claim, because we don't want you to ever need to file a claim.  No one benefits when our clients suffer through the need for insurance.

Yes, my industry makes a good chunk of change.  But my company also paid two billion dollars in insurance claims due solely to Hurricane Katrina.  Thats just one storm.  We paid multi-millions more in normal claims.  And what about the years when there are two or three hurricanes?  What we pay out is even higher.

People don't like using their money on something they may never use.  Heck, I don't like paying personal auto insurance.  But when a car hit me on the freeway, and when a lady ran a stop sign and hit my car, insurance definitely came in handy.

Insurance is really a necessary thing to have.  For a small amount of money, you get a promise to that when something really really horrible happens, we'll have your back.  If your house burns down, for the low price of a few grand a year, we'll rebuild the entire house. 

I have to ask you...would you rather go bare and hope your house never burns down?  Or pay a bit of money and sleep safely knowing we'll be there the next day, writing you a check, and getting you back on your feet?

[shorthair]

Aaand, that's a wrap!  Alright, great folks. Um, actually, it seems tommy's saying they welched when he needed it.

This was once the lands of dreams

Now these dreams have turned to greed

In the midst of all this wealth

The poor are left to help themselves

A capitalist democracy

No one said that freedom's free

Lady liberty rots away

No truth no justice, the American Way!  CHUN-CHUN.


What's the American way? Does it matter? Is there something more productive?

[Havok]

Yes, my industry makes a good chunk of change.  But my company also paid two billion dollars in insurance claims due solely to Hurricane Katrina.  Thats just one storm.  We paid multi-millions more in normal claims.  And what about the years when there are two or three hurricanes?  What we pay out is even higher.

And how much have you made since your particular business started? How about all the years when there is no massive hurricane? And how about the team of lawyers your industry has to NOT pay out claims?

Insurance Company: Yes, I realize your house was destroyed by the hurricane, and you have a policy with us. However, there is water damage here, and you don't have flood insurance. I'm sorry, you're not covered...

And how can you justify when insurance companies cancel coverage after being forced to pay on a claim? Isn't that what insurance is for? We pay in case we need to file a claim, but if your industry has to pay out, then you either raise a person's rates, or flat out cancel them. WTF?

[boykster]

I've had great experiences with insurance companies.  Most recently, I filed a claim for some damage to my SUV that was my fault, the insurance company covered it 100% (minus deductible) and my rates didn't even go up...they went DOWN (I turned 35)...

 

[SirPeale]

Tommy's not disputing  that it's necessary...he's pissed that the company drops his policy after paying out a claim.

[ChadTower]

The only home insurance claim I've ever made was rejected, approved, rejected, approved, and then put off payment for so long I eventually gave up.  The guy who was handling it "was let go" about 5 times, the files got lost in an office move, they had to reinspect and then said "well there isn't any damage" a year after I paid out of pocket to have it fixed because it was a danger (my electrical panel was damaged), etc etc.  Long story short, I pay my home insurance premiums in full and on time and when I needed to use it they flat out refused to pay even though they were obligated.  I eventually, about two years later, contacted a lawyer that told me it wasn't worth it, it would cost twice as much in attorney's fees with him or any other attorney, and that he sees this all the time.

[GreenKnight37]

Cancellations don't usually come about as a result of a claim --- unless its massive.  Its in the company's best interest to pay the claim, have the customer feel that the insurance carrier is going to be an ally if ever needed, and then retain the customer for many years to recoup whatever was paid out.

I sent Tommy a PM after I posted to see if I could get some more details on his situation, as I dont know if he wants to post it for all to see.  But my guess would be that the insurance carrier is doing a broad cancellation.

Look at Florida for example...No new policies are being written there and almost everything is being cancelled when its up for renewal.  When a carrier does cancel policies, depending on situations, its usually for a large group of people in certain locations.  Or, a large group of people who are doing a certain type of operation, which the carrier no longer feels comfortable with. 

Its rare to be cancelled for an individual claim.  If thats what they did, then it was stupid on their part and I'd definitely agree and sympathize with Tommy's frustrations. 

[Ed_McCarron]

I just filed a homeowners claim for a damaged wall in front of my house.  Goofy town copcar hit it doing 70 while airborne.  Clipped a passing car while responding to a silent alarm... at a body shop... at 12 midnight.

Moron comments aside, I spent 7 months dicking around with the town (Sure, well cover it.  We'll hire a contractor.  Don't worry about a thing.) and then, when they decided to get around to it, they decided my homeowners should cover it and I should find my own contractor.

I've got to jump through hoops to file the claim a specific way so that my premiums don't go up, and even though 20 people have told me that they won't go up, the insurance co.  refuses to put it in writing.

Rolling the dice...