Farmers Refuses to Pay Botched Auto Repair

[yoyowordup]

I've had several clients leave me for Geico only to come back the next year. Some clients need more service and agent consultation than others (which they usually find out at claim time).

An agents role is to find the best coverage, price, company that fits the insured's needs, but also to find out what exposures the insured has and which ones the insured wants to insure vs retain.

[Brenda H]

yoyowordup--you are exactly right. I felt my post was getting long, so I didn't even venture into that part of the argument, but it has been my experience that clients may leave for Geico this year, but they usually come back after a claim, or after they discover that they have to talk to "peggy" of the day when they call.

[mica.cooper]

I find that Farmers agents are generally some of the most competent out there but....

They are also one of the most active captive agents writing INDEPENDENT business, more so than State Farm or any other. I think we all know why.

FYI, it has been the recent experience of my peers that GEICO pays claims better than Farmers.

[DougJohnston]

Mica,

First, sorry about the damage and screwed up repairs to your car - sucks.

Second, I would have expected you to use an Independent Agent as your advocate in protecting your collectors car. Most IA's would have recommend a specialty carrier, such as Haggerty, and then provide assistance to you throughout the claim process.

Good Luck!

See you in Tampa?

Doug

[claimsguy]

In what state did the claim and repair occur? Most states have Fair Claims Practices to ensure claims are settled fairly. For example, in California referrals to repair facilities result in an insurer's warranty for the repair whether or not it is partnered repair facility of the insurer. If the agent made the referral and if the state's Fair Claims Practices are on your side, you may actually have recourse through Farmers. You can google Fair Claims Practices and the state you are in to find the regs. You may not be out of luck.

[sacman]

Claimsguy-

By your name I will assume that you know what you're talking about.
But, man, that seems incredible to me. I know CA has some different laws but.....
That REALLY mandates that agents in CA be extremely careful in shop referrals.

BTW-
Doug Johnson is dead on. If you have a specialty vehicle you should be looking at Hagerty or Grundy.

[Phils]

In what state did the claim and repair occur? Most states have Fair Claims Practices to ensure claims are settled fairly. For example, in California referrals to repair facilities result in an insurer's warranty for the repair whether or not it is partnered repair facility of the insurer. If the agent made the referral and if the state's Fair Claims Practices are on your side, you may actually have recourse through Farmers. You can google Fair Claims Practices and the state you are in to find the regs. You may not be out of luck.

I'm north of Sacman, but I've never ever heard of what you are saying. So if I "recommend" a local shop, and something goes to s**t, the client could have recourse through the company (yeah, it's FIG)? I read and sign acknowledgement every year about 'fair claims practices' but have never even heard a hint of this (so maybe it doesn't apply in CA?).

How 'bout if I suggest three local shops? Should I not ever recommend any shop?

Phil

[darnovak]

May I suggest you always advise the insured (in writing of course - and documented in your ams) to obtain a written, competent appraisal for a specialty vehicle they want to insure. Step 2 is to know what the settlement provisions are under the policy your insured intends to purchase (or to add the vehicle to) - by all means recommend a carrier if you are familiar with their settlement provisions. With a written appraisal in hand you can often add 'stated amount' physical damage to many PAPs. Adding to an existing PAP may be necessary if the specialty car is driven to and from work, all year long, more than x,000 miles year, etc. (Ineligible for a specialty program...) Again, be aware of the settlement options offered and make sure underwriting gets a copy of the appraisal. Read a specimen copy of the policy (you do know what you are selling don't you?) look at the settlement provisions for phrases like (the lesser of), (acv), (reasonable cost to repair/replace), etc. Does the insured have settlement options? Find out if an existing appraisal will be honored - it may be too old. There's more to be sure, but this is a good start. Thank you for attending Insurance 101.