Rant: What Is Wrong With Insurance Companies?

[eq3]

I am sure this topic has been discussed multiple times on multiple boards, but I just don't understand why insurance companies cannot give you a straight answer when you have a claim?!? I had my car written off (or so they say) and they keep giving me the run around as to when I can expect a cheque and the deal to be finalized. I just don't get it...I pay all this money and for what?! A HEADACHE! The one adjuster I dealt with was super nice and then she sends my file off to this moron and now I'm at their mercy....

[xpl0sive]

just be happy you don't live in BC and have to deal with ICBC. we pay twice as much as you do, and get half the service. But, what i find always helps is talk to the adjuster's supervisor, they are the people that can get stuff done

[m5racer]

i dont know about paying 2x as much, insurance here is about as high as it gets!

[xpl0sive]

meh at least its still private... ICBC raked in over 600 million dollars in PROFIT in 3 months.... and its supposed to be a non-profit organization... i'd kill for private insurance

[m5racer]

lol well for me (19) clean reccord in ontario for my car the cheepest insurence i could get was $10,000/year (living in toronto) in london where i went to school it was about 7

[mattman]

I got nailed at a traffic light (i was stopped) back in december....I was at zero fault and they still gave me a hassle.
Insurance companies are run by heartless dicks. thats all.

[RippleChip]

lol well for me (19) clean reccord in ontario for my car the cheepest insurence i could get was $10,000/year (living in toronto) in london where i went to school it was about 7

Damn, that is crazy. I'm 26, but for the same car pay about 1500 a year. Thinking back around 23 I was paying around 2200 a year for the car. I don't see how they can charge that much if you have a clean record.

[MagnusS4]

that's nothing...when i was 16(4 years ago) 50% of the insurence companies didn't even want my business. and the other 50% wanted 10000$+ for a prime driver status. clean record

[auditurboq]

If you guys knew how much insurance companies had to pay out to people who lose a loved one, or can't work anymore (have to have nurses come to their homes, can't even take care of their own children) you then might get why rates are so high. No, I don;t work for one, YES! I get super pissed when I get my insurance bill! My fiance started working for TD a year ago, she is a licensed insurance professional - the stories I hear from her! She sees it all, hears it all and sees how much money has to be paid to people. Most think that the value of the car is what the companies are worried about, beleive me, they could care less about a 50 grand car when a 17 year old took out a husband and wife at 80 km/h and neither can work, neither can care for their 2 year old and their 4 year old - she figures over a period of the next 10 years this couple will get about 150k/year for not being able to work, they will get more money for care, they will get money to pay for care for their children, they will get money to revamp their house and car as the husabnd is now in a wheelchair.. were talking millions, now that 4-5 grand that kid was paying in premiums... how much do you think that covers towards how much this couple will get (and I am not saying they don;t deserve it) God, being in a wheel chair.. not enough money in the world to have to be stuck with that! I am not bitching about just younger people (iam not old myself) LOL.. but I used to think the same things, until I heard story after story of people being so messed up that they can't walk, cant take care of their kids, cant cook for themelves, hell some can't even go to the washroom on their own- how much is that worth? Not even close to what you pay in premiums. I know the companies make a profit.. well don';t all companies? You may be thinking, well these stories are far and few between, nope, everyday she gets calls where 10's of thousands, 100 of thousands, and yes, even millions are/have or will be paid out to the client, clients family etc... again, I get just a pissed when i get my bill, especially if I got a ticket or two that year, but now I kind of have a better understanding of where a good chunk of that money goes.

[m5racer]

all great points, but here in ontario and other palces in canada we get shot with insurance. example, i dont know the system in quebec but all i know is that a 21 year old can get an S4 insured with full coverage for 2,000/year. while i get nailed with a 8,000/year policy with minium coverage. I understand they need to pay out yada yada yada, but how do insurance companies in Quebec and the US not only survive but make profits, I really think that insurance here in ontario is jsut rediclious, and gas is getting to the same redeclious level as insurance. I mean not only do i need to pay $8,000/year for insurnace but now i need to pay $1.50/L for gas also, shit when regular hits 1.50 half the people in this city arnt going to be able to afford to drive there cars anymore! and its going to cost me well over $100 to fill up a dam 4 cilinder !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[buck]

I've had good and fast service/payouts with State Farm... however no claim was over $2000.

[audipotential]

all great points, but here in ontario and other palces in canada we get shot with insurance. example, i dont know the system in quebec but all i know is that a 21 year old can get an S4 insured with full coverage for 2,000/year. while i get nailed with a 8,000/year policy with minium coverage. I understand they need to pay out yada yada yada, but how do insurance companies in Quebec and the US not only survive but make profits, I really think that insurance here in ontario is jsut rediclious, and gas is getting to the same redeclious level as insurance. I mean not only do i need to pay $8,000/year for insurnace but now i need to pay $1.50/L for gas also, shit when regular hits 1.50 half the people in this city arnt going to be able to afford to drive there cars anymore! and its going to cost me well over $100 to fill up a dam 4 cilinder !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

My girlfriends father said that when he went to iran a couple months ago, he was filling up with about 15 dollars

[auditurboq]

You are correct about Quebec vs Ontario. But the thing is you have to look at the coverages and the laws. See in Quebec your standard liability is 50 grand, here the minimum liablity is 1 000, 000. Imagine being messed up for life and what the insurance has to pay you lost wages, pain and suffering, money to your kids and wife because you cant be a father - beleive me the list goes on and on and includes things you never even thought. In Quebec you would get very little payouts if any on many things(unless you get upgraded packages added to your insurance) where as here in ontario these coverages are mandatory - which is why we pay more. Like I was saying in my original post, they dont really care about having to fix your car, or replace it, that is really peanuts to them. Its the medical, liability and loss wages payout that cost them hundreds of thousands and even millions. They do offer the same coverages in Quebec that we have here for an extra charge. These are called upgrades. Have a look at your policy and what you get as far as coverages for you and people you hurt and your family, then get a quote as if you lived in Quebec and get all the additional coverages that would put you at par with the coverages that are mandatory here in Ontario, then you will see that it is actually the same.

Basically it would be like comparing a really good factory warranty on your new vehicle to one of the sub-par aftermarket ones that are not worth the paper they are written on. Sure they both give you some form of protection, but when you start to read the contract you quickly see why one costs much more than the other.

[Stevelev]

The Accident Benefit section of the Ontario policy provides better coverage here compared to Quebec; however, do you really think $400. weekly (standard coverage) is adequate for many people as an income replacement?? The cost of coverage is dependent on the past claims and actuaries get paid big bucks to crunch numbers ... A large city with high density (ie: your "centre of the universe") have rates approx 30% higher than my smaller, boring Gov't town. In other words, you can't paint this picture with a broad brush.

To the OP, assuming you're dealing with an independant broker, they should be able to assist you with regards to dealing with the moronic adjuster. In my experience morons are VERY common. BTW, I'm in the "bidness" and also have issue with how insurance companies act ... at least we have private companies as having a Gov't insurer would be considerably worse !

[auditurboq]

No, $400 is not nearly enough, I have mine upgraded - most companies go standard $400, then $600, then $1000. I think you can go higher (would have to ask my Fiance) Although the $400 or whatever you have upgraded to is over and above anything you will be receiving (Company benefits, Government etc..) Think $400 is bad, check out a Standard Quebec policy and see what you would get if you had lost wages.

[Stevelev]

No, $400 is not nearly enough, I have mine upgraded - most companies go standard $400, then $600, then $1000. I think you can go higher (would have to ask my Fiance) Although the $400 or whatever you have upgraded to is over and above anything you will be receiving (Company benefits, Government etc..) Think $400 is bad, check out a Standard Quebec policy and see what you would get if you had lost wages.

3 comments to make:

1) The coverage is quite limited - When increasing the limit, bear in mind it is ONLY for injuries arising from a car accident so you're out of luck for sickness or injuries arising elsewhere. In other words, it makes sense to obtain a proper individual disability policy if you have no group benefit plan coverage.

2) Income replacement payments via this specific section of the auto policy is contingent upon not having income replacement elsewhere so if you have $400. or more in place vai your group benefit plan, the auto policy does nada for you.

3) $1,000. is the maximum in Ontario and depending on one's age, smoking status as well as occupation, it is possible to obtain much more comprehensive coverage for less than the increased auto policy premium.