The last paragraph concerning the underinsured motorist deserves more attention. I’m seeing a substantial increase in underinsured motorist claims in my agency. Far too many drivers have policies with minimum limits of liability. The various state legislatures need to increase the minimum limits in their states.
Kent, there are many direct writing insurers who are selling auto insurance strictly on lowball premium quotes based upon minimum limits policies. Flow and the Gecko are often involved. Several months ago, State Auto Insurance Co. aired a radio advertisement with wording “Aren’t you glad you are PROTECTED with a State Auto minimum limits policy”? Protection, really?
Kent, even if the states increase the liability minimum limits, they are still inadequate for serious BI or PD claims. I have actually seen policies with no U/M at all and no PIP and just have basic limits on liability. Many low information drivers don’t know what they don’t know and are shocked at what they don’t have when I point it out to them. All they cared about was how much the premium was per month. Sometimes they get a shock when there is an accident, especially with an at fault UM driver.
Nowhere in the article were Illegal Immigrants mentioned as the reason for the increased UM claims. Duh! Liberal writers!
Most of the states listed with the largest UM problems are southern states near the US Mexican border, or states where Illegal Immigrants have migrated for meat packing or construction jobs.
I believe it is a combination of poor economy and the illegal alien problem and there are always the ones who just won’t buy it. I was involved with a U/M claim myself about 7 years ago. Totalled my car, put me and wife in the hospital. The guy had no license, no insurance, ran a red light and tried to leave the scene. It turned out he had several warrants out for his arrest and the rookie cop didn’t run him through the computer so he was let go. It was a good thing I had high U/M limits which took care of everything but the PD deductible. The perp then disappeared to another state and the company and Police never found him.
Did you see the story about the police who pulled over a car for an illegal turn in AZ yesterday? (He was also on his phone)
Turned out to be an illegal alien, so they called Border Patrol. In minutes protesters showed up claiming racial profiling. Some of their protests signs now say that OUR border is ILLEGAL.
InsGuy, do you remember when Obama and Holder sued Arizona for enforcement of immigration laws. The Feds weren’t willing to do it, so Arizona was. Sheriff Joe has defied Holder and still does it. He is one tough dude even when the liberals try to get him out of office.
There is a segment of society that wouldn’t sign up for insurance if it was free. Add in a reasonable cost and you lose some more. We should understand that not everyone is going to purchase auto insurance. The only way to ensure compliance would be through a government run program on a national basis that was charged at the pump. Considering the fight over Obamacare, I don’t think this will happen. Stop worrying about it and buy UM/UIM.
Pay-at-the-pump has been considered and failed. An alternative is to connect a GPS system with a database of insurance coverage. Each car’s VIN number coded into the GPS would be matched against a database of in-force insurance coverage maintained by each state’s DMV. If a car were operated without insurance, a meter maid type enforcement officer would locate the car via GPS, ‘boot’ it, and issue a summons to the registered owner. Details could be worked out to prevent invasion of privacy of law-abiding, insured owners, or removal of the GPS devices.
This database system is updated, maybe once a week. If I buy insurance today, and drive, the GPS system would say I don’t have insurance, which would be incorrect. Does the GPS system know that the driver is covered in the policy? Don’t think so. Anyone who wants to,can get in a vehicle and drive drunk, anyone who wants to drive without insurance, can also do so. Protect yourself.
Alan, any normal citizen who is buying a car and financing it must have insurance or the bank will not finance it. Most of the ones not buying insurance are buying clunkers for cash and then going uninsured for most of the year. Some who have to get an inspection or registration buy it on one month policies, then drop it and go uninsured the rest of the year.
I am not sure I understand your post Vickie. There are rings out there that stage accidents in order to defraud the carriers. They pull in front of a legitimate driver and slam on their brakes. Some of these rings have been exposed and prosecuted, but they still try it.
I think what she’s saying is no-one wants to take responsibility these days, even when they are clearly at fault.
BTW, I just had one of those claims you described yesterday. The clmt stopped suddenly forcing my insd to rearend him, immediately jumped out of the car claiming neck injury (it usually takes a day or 2 to realize that) and when my client called the cops, he took off and fled the scene.
It didn’t stop him from filing a no-fault claim with his carrier who is sending over subro papers to our insd. We intend to fight it. Oh, and the claimant was driving a rental car! And I’m sure he bought the collision damage waiver. He sure didn’t want to wreck his own ride.
This happened to my Mom, too. Her carrier, USAA, denied liability and the claimants went away. Too many carriers will just pay. It ain’t right!!
Could you tell me which carriers are not applying state minimum limits when the policy is issued? They are violating the law if they are and should be prosecuted. Common sense says you must issue at least the state minimums.
I have a theory that, while the number of UM drivers has apparently declined, the increasingly poor loss experience is due to the proliferation of coverage-deficient auto policies that now pervade the marketplace.
The price-focused frenzy that has saturated the media with low-cost auto insurance advertising has led insurers to expand exclusions and tighten claims handling practices.
We usually think of a UM vehicle as being one without insurance or with low limits when the reality could be that the predominant form of UM vehicle is one covered by a policy loaded with exclusions where the insurer “rightfully” denies claims typically and historically covered by “ISO standard” auto policies.
How many landlords are not getting their rent because of required auto insurance? I have four studies/surveys that show increased food stamp use due to mand auto insurance.
If an indigent buys mandatory auto insurance and finds out he can no longer buy his food, or pay the rent, you have to kick him ten times as hard to get him to buy that again and he will rather choose to drive without insurance, drive without a license, drive without plates, steal plates, not stay at the scene of his accident, etc.
The last paragraph concerning the underinsured motorist deserves more attention. I’m seeing a substantial increase in underinsured motorist claims in my agency. Far too many drivers have policies with minimum limits of liability. The various state legislatures need to increase the minimum limits in their states.
Kent, there are many direct writing insurers who are selling auto insurance strictly on lowball premium quotes based upon minimum limits policies. Flow and the Gecko are often involved. Several months ago, State Auto Insurance Co. aired a radio advertisement with wording “Aren’t you glad you are PROTECTED with a State Auto minimum limits policy”? Protection, really?
Kent, even if the states increase the liability minimum limits, they are still inadequate for serious BI or PD claims. I have actually seen policies with no U/M at all and no PIP and just have basic limits on liability. Many low information drivers don’t know what they don’t know and are shocked at what they don’t have when I point it out to them. All they cared about was how much the premium was per month. Sometimes they get a shock when there is an accident, especially with an at fault UM driver.
Nowhere in the article were Illegal Immigrants mentioned as the reason for the increased UM claims. Duh! Liberal writers!
Most of the states listed with the largest UM problems are southern states near the US Mexican border, or states where Illegal Immigrants have migrated for meat packing or construction jobs.
I believe it is a combination of poor economy and the illegal alien problem and there are always the ones who just won’t buy it. I was involved with a U/M claim myself about 7 years ago. Totalled my car, put me and wife in the hospital. The guy had no license, no insurance, ran a red light and tried to leave the scene. It turned out he had several warrants out for his arrest and the rookie cop didn’t run him through the computer so he was let go. It was a good thing I had high U/M limits which took care of everything but the PD deductible. The perp then disappeared to another state and the company and Police never found him.
Did you see the story about the police who pulled over a car for an illegal turn in AZ yesterday? (He was also on his phone)
Turned out to be an illegal alien, so they called Border Patrol. In minutes protesters showed up claiming racial profiling. Some of their protests signs now say that OUR border is ILLEGAL.
Unbelievable.
InsGuy, do you remember when Obama and Holder sued Arizona for enforcement of immigration laws. The Feds weren’t willing to do it, so Arizona was. Sheriff Joe has defied Holder and still does it. He is one tough dude even when the liberals try to get him out of office.
There is a segment of society that wouldn’t sign up for insurance if it was free. Add in a reasonable cost and you lose some more. We should understand that not everyone is going to purchase auto insurance. The only way to ensure compliance would be through a government run program on a national basis that was charged at the pump. Considering the fight over Obamacare, I don’t think this will happen. Stop worrying about it and buy UM/UIM.
Pay-at-the-pump has been considered and failed. An alternative is to connect a GPS system with a database of insurance coverage. Each car’s VIN number coded into the GPS would be matched against a database of in-force insurance coverage maintained by each state’s DMV. If a car were operated without insurance, a meter maid type enforcement officer would locate the car via GPS, ‘boot’ it, and issue a summons to the registered owner. Details could be worked out to prevent invasion of privacy of law-abiding, insured owners, or removal of the GPS devices.
This database system is updated, maybe once a week. If I buy insurance today, and drive, the GPS system would say I don’t have insurance, which would be incorrect. Does the GPS system know that the driver is covered in the policy? Don’t think so. Anyone who wants to,can get in a vehicle and drive drunk, anyone who wants to drive without insurance, can also do so. Protect yourself.
Alan, any normal citizen who is buying a car and financing it must have insurance or the bank will not finance it. Most of the ones not buying insurance are buying clunkers for cash and then going uninsured for most of the year. Some who have to get an inspection or registration buy it on one month policies, then drop it and go uninsured the rest of the year.
There is a segment of the population that believe that the guy that got rear ended is at fault.
In their view the key to success is to always blame the other guy………
I am not sure I understand your post Vickie. There are rings out there that stage accidents in order to defraud the carriers. They pull in front of a legitimate driver and slam on their brakes. Some of these rings have been exposed and prosecuted, but they still try it.
I think what she’s saying is no-one wants to take responsibility these days, even when they are clearly at fault.
BTW, I just had one of those claims you described yesterday. The clmt stopped suddenly forcing my insd to rearend him, immediately jumped out of the car claiming neck injury (it usually takes a day or 2 to realize that) and when my client called the cops, he took off and fled the scene.
It didn’t stop him from filing a no-fault claim with his carrier who is sending over subro papers to our insd. We intend to fight it. Oh, and the claimant was driving a rental car! And I’m sure he bought the collision damage waiver. He sure didn’t want to wreck his own ride.
This happened to my Mom, too. Her carrier, USAA, denied liability and the claimants went away. Too many carriers will just pay. It ain’t right!!
What about the insurance companies NOT applying state mandated liability limits when the policy is issued?? Wouldn’t they be at fault??
Could you tell me which carriers are not applying state minimum limits when the policy is issued? They are violating the law if they are and should be prosecuted. Common sense says you must issue at least the state minimums.
Where can a copy of the report be gotten?
I have a theory that, while the number of UM drivers has apparently declined, the increasingly poor loss experience is due to the proliferation of coverage-deficient auto policies that now pervade the marketplace.
The price-focused frenzy that has saturated the media with low-cost auto insurance advertising has led insurers to expand exclusions and tighten claims handling practices.
We usually think of a UM vehicle as being one without insurance or with low limits when the reality could be that the predominant form of UM vehicle is one covered by a policy loaded with exclusions where the insurer “rightfully” denies claims typically and historically covered by “ISO standard” auto policies.
How many landlords are not getting their rent because of required auto insurance? I have four studies/surveys that show increased food stamp use due to mand auto insurance.
If an indigent buys mandatory auto insurance and finds out he can no longer buy his food, or pay the rent, you have to kick him ten times as hard to get him to buy that again and he will rather choose to drive without insurance, drive without a license, drive without plates, steal plates, not stay at the scene of his accident, etc.