This will be a nightmare for Geico and other carriers who want to go direct and circumvent agents who underwrite. Why pay for insurance if you can get it after the accident?
This has been going on since the first insurance policy was written. My guess is that Geico and others have a pretty good handle on investigating these claims. I’d love for Geico to lose their lizard scales (shirt) on this but I doubt it’s happening.
Post-occurrence underwriting is VERY popular with the Direct Writers. 1-800-Cheap collects the money upfront with minimal underwriting, THEN performs their underwriting due diligence post-accident. Gee, what a great way to assure high cash flow and profitable loss ratio. One could effectively argue that enticing the insuring public with low price, inadequate underwriting and denied claims amounts to entrapment.
Hey genius insurance CEO’s. Hire agents or field underwriters to inspect vehicles before binding physical damage coverage. Problem solved!
I buy my GEICO… AFTER I have the accident. It’s how I save… 15% IN 15 MINUTES!
This will be a nightmare for Geico and other carriers who want to go direct and circumvent agents who underwrite. Why pay for insurance if you can get it after the accident?
This has been going on since the first insurance policy was written. My guess is that Geico and others have a pretty good handle on investigating these claims. I’d love for Geico to lose their lizard scales (shirt) on this but I doubt it’s happening.
Post-occurrence underwriting is VERY popular with the Direct Writers. 1-800-Cheap collects the money upfront with minimal underwriting, THEN performs their underwriting due diligence post-accident. Gee, what a great way to assure high cash flow and profitable loss ratio. One could effectively argue that enticing the insuring public with low price, inadequate underwriting and denied claims amounts to entrapment.
Let them live the nightmare. They’ve earned it by selling nothing but price, and luring market share away from true insurance professionals.