While staying home will there be an adjustment or waiver for auto insurance payments?

http://www.freerepublic.com ^ | 4/3/2020 | dragnet2

[dragnet2]

Since millions of us have been directed to stay home and shelter in place and avoid all needless, unnecessary travel, will our insurance payments and or premiums be adjusted down or waived during this crisis?

My driving has been reduced about 95 percent, not to mention not using/riding my motorcycle at all.

I suggest everyone call their insurance carriers and inquire about this. Maybe save some big money.

[dragnet2]

I noted ya missed or evaded these two questions below. Let me try again.

So on top of paying these people all your life, the insurance companies advise that people should hire a lawyer to go over their policies?

Do you people in the insurance industry advise your clients to hire lawyers so they fully understand these contracts, so they're fully protected and fully understand these contracts?

If not, why not?

[dragnet2]

I get it, you have a permanent rage-on at insurance companies

For an insurance adjuster, you catch on quick.☺

[Magic Fingers]

“I noted ya missed or evaded these two questions below. Let me try again.
So on top of paying these people all your life, the insurance companies advise that people should hire a lawyer to go over their policies?
Do you people in the insurance industry advise your clients to hire lawyers so they fully understand these contracts, so they’re fully protected and fully understand these contracts?
If not, why not?”

Insurance companies do not advise people to hire a lawyer to go over their policies. If you know of one, name them. Many have developed and provided “plain talk” policies that simplify the legalese in the standard insurance contract (which, incidentally, looks the way it does because of our legal system, just like many other contracts do).

Insurance contracts are complicated but if you ask, your agent will explain your policy both before and after a loss, and your adjuster will explain your policy when you file a claim. But I suspect you’ve never asked - you’d much rather complain.

I also “noted” that once again you didn’t read my prior replies, which have already addressed this. I ain’t gonna try again. And your “two questions” are the same question, both of which have the same answer - they don’t.

“On top of paying these people all your life”...again, I note your inability to grasp my prior replies...so DON’T pay them. Post a bond, pay your own losses, negotiate repairs with the shop, and get your pants pulled down around your ankles so fast it’ll make your head spin. And if it’s total loss, that’s 100% on you.

Here’s a suggestion...go down to the grocery store and tell them that you’ve been paying for food your whole life and consuming it (just like you do with insurance coverage, every day), and tell them you want some of your money back. They’ll tell you that you bought it, you used it, and you’re even (and they’ll look at you like you’re a fool, with good reason).

And for the record, I’m not a “you people in the insurance industry”. I’m retired, and while insurance claims was the last industry I worked in, I worked in the collision repair industry before that (which you’d know if you had better reading comprehension). You obviously have no interest in facts that conflict with your bitch-fest, so stay ignorant and angry. Adios.

[Magic Fingers]

“For an insurance adjuster, you catch on quick.”

Well, you don’t catch on at all, since I wasn’t one - but I do understand how that area of claims works, while you’re staunchly committed to remaining uninformed...so stay that way.

[dragnet2]

Insurance companies do not advise people to hire a lawyer to go over their policies.

It was a rhetorical question. Of course they don't, even though they tell their clients constantly how much they care, and all the BS you're in good hands. Insurance contracts can be unbelievably complex with dozens or hundreds of pages of legalese BS. Most unsuspecting folk have no idea what most of it means, they just pay up only to find they're sh*t out of luck when it comes time to file a claim.

If these insurance carriers were ethical, they would clearly and publicly advise all these unsuspecting people to hire an attorney to protect themselves from unscrupulous insurance carriers who routinely take full advantage of their clients.

Of course most folk can barely pay their insurance premiums let alone hire lawyers to advise them about insurance contracts. And the insurance carriers are fully aware of this. It's very convenient for them.

[dragnet2]

I was in collision repair management and vehicle insurance claims management over multiple states for 40+ years.

That's all very commendable, but you were basically an insurance adjuster regardless of the title they gave ya.

[Drago]

Not trying to be an “insurance advocate” but my insurance agent works for himself as a small business...most if not all are just affiliated with the big name insurance companies and get a small percentage commission per policy/per month. Big prop/casulty insurance companies make about a 6% net margin, far lower than dozens of other industries. Some years they lose billions...my auto/homeowners provider (State Farm) lost $2.55 billion in 2015 (wildfire losses) but bounced back in the following years.

There is $350 billion in the new SBA “PPP” program for small business to keep people on, jacked up unemployment benefits for everyone even independent contractors and self-employed, and “helicopter $$” for every citizen. Everything can’t be discounted/free because of a virus/government action w/o putting millions more people out of work.

BTW: you can call your agent and turn down your “miles driven per year” number to save some money if you want.

Industry net profit margins:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html

[dragnet2]

my insurance agent works for himself as a small business...most if not all are just affiliated with the big name insurance companies

I've tried, but I have zero sympathy for anyone in that industry. Especially now since they've refused to adjust and or waive premiums/payments of people who've been forced to reduced their driving 90+ percent due to these stay at home, no travel directives.

While everyone else eats it, the insurance carriers are all about business as usual, pay up... With a wink and a nod.

[Magic Fingers]

“That’s all very commendable, but you were basically an insurance adjuster regardless of the title they gave ya.”

And you’re basically someone who flaps their gums about subjects they know nothing about, and don’t want to know. Enjoy your ignorance.

[dragnet2]

you’re basically someone who flaps their gums about subjects they know nothing about

Actually I know quite a bit about the deceptive nature of insurance companies. It's obscene. Of course, you being paid by that industry, you understand who butters your bread and clearly have a dog in the fight. I understand.

Btw, don't go away angry!☺

[GailA]

Our Impala is nearly 2, has less than 8 k. Equinox has about 12 k in 6 yrs.

[Svartalfiar]

To your original point, how would you prove that you aren’t driving during the “policy/premium reduction period”?

Simple. The company simply doesn't cover anything you do during that time - you can drive all you want, but if something does happen (the reason you have insurance), then the company has an air-tight reason to not pay out a dime. And you bet your ass if you did this and you got in a wreck, they would require all sorts of documentation for you to prove the wreck occurred while you were fully covered.

[Svartalfiar]

While everyone else eats it, the insurance carriers are all about business as usual, pay up... With a wink and a nod.

You do realize plenty of other businesses are expecting payment too, right? Your mortgage company, the car loan, student loans, trash/water, landlords, internet/TV, electricity, the lawn mower company, gas, your cell phone, health insurance premiums, credit cards, city taxes, State taxes, Federal taxes (maybe!), your payment plan at Ikea, every single one of those expect you to pay them also. I bet your city isn't gonna lower your school taxes, even though almost every school is skipping out on 3-4 months of school! Sure, some big name companies have said they won't charge interest for a month or two, and they'll suspend payments (by the way, you still owe that money, they just aren't killing your service for not paying, yet), but not every company is doing that.

Just like any of those, check their website or call them and ask if they have any payment lowering/suspension options. You might get lucky. Or, like many here have mentioned, edit your policy to lower your expected mileage, or put your account in a standby option if they offer it.

[tbw2]

Only if your car insurance is already based on driving habits as logged by a device plugged into the car.

[dragnet2]

You do realize plenty of other businesses are expecting payment too, right? Your mortgage company, the car loan, student loans, trash/water, landlords, internet/TV

But I'm using those things. Big difference. In regards to auto insurance, my driving has been reduced 95 percent due to this crises yet I am still paying full pop as if nothing has changed even though people are required to stay home and avoid unnecessary travel.

[Svartalfiar]

But I'm using those things. Big difference. In regards to auto insurance, my driving has been reduced 95 percent due to this crises yet I am still paying full pop as if nothing has changed even though people are required to stay home and avoid unnecessary travel.

True. But are you not still driving some, to the grocery store or hardware store or other places? Your car is still there, you didn't sell it or put it into storage. But, like several people have mentioned, many insurances offer a discount if you're traveling for a while, or have other reasons to where you won't be driving the car at all. Or, re-quote your quote and drop your expected mileage to a lower number.

[dragnet2]

But, like several people have mentioned, many insurances offer a discount if you're traveling for a while, or have other reasons to where you won't be driving the car at all.

Millions of people through no fault of their own have reduced their driving 90+ percent. It should not be up to millions of individuals to start changing their policies. That would be a logistic nightmare. For example, I still have nearly a full tank of gas in my vehicle for the past 4+ weeks. My point is since this crisis is not due to our actions, the insurance companies ought to reduce premiums to match the restricted directives of staying at home, and avoid all unnecessary travel.

What I find amazing here, is some folks on their thread seem to want to protect this behemoth insurance companies regardless of this crisis and the directives to stay at home and avoid all unnecessary travel.

The insurance companies fully understand all this. It's like paying for 135 cable channels and then being told you can only use 10 of them, yet you're still being billed for 135 channels. That's BS.

[chuck allen]

https://www.msn.com/en-us/money/companies/allstate-to-return-dollar600-million-in-auto-premiums-as-pandemic-cuts-driving/ar-BB12dUIE

Allstate to return $600 Million in auto premiums over virus

[dragnet2]

Allstate to return $600 million in auto premiums as pandemic cuts driving

The insurer Allstate said Monday it will return more than $600 million in auto insurance premiums to customers as many Americans stay home and drive less during shelter-in-place orders to curb the coronavirus outbreak.

___________________________________________________

There ya go, and this is exactly what should have happened, even though some here disagreed. Maybe they read this thread...lol ☺

[Svartalfiar]

Millions of people through no fault of their own have reduced their driving 90+ percent. It should not be up to millions of individuals to start changing their policies. That would be a logistic nightmare. For example, I still have nearly a full tank of gas in my vehicle for the past 4+ weeks. My point is since this crisis is not due to our actions, the insurance companies ought to reduce premiums to match the restricted directives of staying at home, and avoid all unnecessary travel.

And why would they do this? First, reduced mileage doesn't lower your rate that much - find an online estimator and try the same policy with 5M miles, then try with 15M miles. You really don't save that much. And a temporary suspension (for travel or stuff) is, if your company offers it, intended for times when you will be doing zero driving for a while.
But why is it the insurance company's job to figure out which of their policyholders are reducing driving, and which ones aren't? That would be even more of a logistical nightmare than each individual simply changing their yearly mileage estimate. They offer a policy based on the information you give them, including that mileage number. If YOU change your mileage, YOU should be the one to initiate a change in policy.
This crises isn't due to the insurance companies' actions either - why would they be responsible? Same logic goes both ways.


The insurance companies fully understand all this. It's like paying for 135 cable channels and then being told you can only use 10 of them, yet you're still being billed for 135 channels. That's BS.

In which case you call your TV company and complain and they (eventually) give you a credit. But this situation isn't the same, it's more like your regular TV bill: you pay for 135 channels up front, it's not their fault if you only choose to watch ten of them.

(Yes, I think TV channels should be a-la-carte, but that discussion is irrelevant to the current one. )