Let's face it folks, we are in the middle of a recession. Things are bad all over, and people are looking for money any way they can get it. This of course leads to insurance fraud. Today I want to tell you about one of the most popular scams on the road: The Swoop and Squat.
Basically you have multiple cars working as a team on this one. One car pulls in front of you, and another car pulls along side of you to block you from exiting your lane. The car in front of you will slam on the brakes causing you to rear end that vehicle. The car to your side is there to make sure you can not avoid the collision by changing lanes. Now you've just rear ended a vehicle, which places you at fault. When the shock wears off you notice the other car is packed tighter than a can of sardines, and everybody seems to be grabbing their neck. Can you smell that? It's multiple injury claims, but it smells an awful lot like fraud.
But here's the thing. The other people may not seem hurt. They may look fine, and the damage to the other car may look minor. So you think it's no big deal, and you exchange information really quick as the other driver says, "I may not even file a claim." No need to call the cops, right? Nobody is hurt, very little damage, you're in the clear, right? Wrong. The other driver then takes his car to his friend's body shop where they proceed to turn that minor damage into major damage by backing the car into a wall, or hitting it with another car even. A few days go by and you get a call from your insurance company about a claim that was filed by the other driver and his injured passengers. Hope you like higher insurance rates, cause that's what your getting for Christmas.
How To Protect Yourself
The best way to avoid falling into a fraud trap like this one is to remember the basics of driving that we all learned when we were 15:
1.) Follow the 3 second rule (leave 3 seconds between you and the car in front of you)
2.) Always leave yourself an out (don't let people box you in)
3.) Pay attention at all times (Fraud loves people texting while they drive, or talking on cell phones)
And I've added one of my own: Be leery of cars packed with people. Seriously, when was the last time you were in a car with 4 or more other people? College? Family road trip? If you see a car packed with people (especially an old beat down car) keep your distance!
If you are in an accident make sure you gather as much info as you can about the other party and any passengers. Make sure to count how many passenger were in the other car and get their names and license information. You may be surprised when you thought there was only 2 people in the other car and then all of the sudden there is 5. Take pictures of the other vehicle damage just in case. Call the police. The police may or may not come. If the other people are all willing to give all their info it may not be that big a deal. If they don't want to share the info make the cops come. Tell the police you suspect fraud and you insist they come to the scene for your protection. If the other party tries to leave before the police get there tell them you have their plate number and will report this as a hit and run if they don't stick around to exchange info. The other party may protest, but that is not your problem. People who perpetrate fraud always seem nice at the scene. This is so you will let your guard down. Don't fall for it.
And last but not least. Report the accident to your insurance company as soon as possible, no matter how minor. This is why you have insurance, to protect yourself. Adjusters are trained to spot fraud indicators, and every company has a fraud division that specializes in busting these people. Let them handle it.
Sunday, December 7, 2008
Sunday, October 26, 2008
Look up the word Mitigate
As an adjuster one of the first letters I send out to people is one that encourages them to mitigate their damages. It basically says that it may take some time to sort everything out and we will not pay for fees that you could have avoided by using a little common sense. We send this out because sometimes people feel if they were not at fault for an accident they don't need to worry about anything, the other guy's insurance will take care of it. Well . . . maybe.
Insurance can get complex. The other guy may have insurance, but maybe not enough. He may have insurance, but his policy may not cover him for this accident for one reason or another. He may have insurance, but forgot to pay his bill until after he got in a crash. Your best bet is to repair your car through your own collision coverage, using your rental car benefits if you need to, and hen let your insurance company worry about getting paid back. If you are not at fault, your insurance rates should not be affected.
Real Life Example:
I got a claim some time back that did not have any information about the other driver. Of course the description on my claim report said, "Information on police report." When I spoke with the driver he did not have the info either. I figured if the other driver wanted their car fixed they would contact me since we were at fault for the accident. A month went by before I heard from the other driver.
When the other driver contacted me she asked when I was going to fix her car. I asked her where it was and she said at a tow yard. When I asked how long it had been there, she said since the day of the accident because he air bag went off and the car could not be driven due to extensive front end damage. The car was older so I figured it would be totaled and we would pay her for the value of the car instead of repairing it. One problem, my insured had $5,000 for property damage limits, and the other car was worth more than that. To make matters worse the tow yard was charging $50/day to have her car in their yard so she had racked up $1,500 in storage fees that would have to be paid before they would release the car. No insurance company will pay for storage for more than a day or two because these fees are easily avoided by removing your car from the facility. Insurance companies will almost always cover reasonable expenses associated with having your car towed from a storage facility to your house.
The thing that drove me crazy was that the other driver had coverage to fix her car but told her insurance company that she wanted to use our policy because it wasn't her fault. Well, now she can choose to take my $5,000 policy limit (which is not sufficient to cover her damages and expenses), or fix her car through her own policy (which she should have done to begin with) and let her insurance company worry about getting paid back. Unfortunately, she will be paying about $1,200 in storage fees no matter what she chooses to do because she did not mitigate her own damages.
The moral of the story: get your car fixed ASAP through your own policy and let your adjuster worry about getting paid back, that's their job.
Insurance can get complex. The other guy may have insurance, but maybe not enough. He may have insurance, but his policy may not cover him for this accident for one reason or another. He may have insurance, but forgot to pay his bill until after he got in a crash. Your best bet is to repair your car through your own collision coverage, using your rental car benefits if you need to, and hen let your insurance company worry about getting paid back. If you are not at fault, your insurance rates should not be affected.
Real Life Example:
I got a claim some time back that did not have any information about the other driver. Of course the description on my claim report said, "Information on police report." When I spoke with the driver he did not have the info either. I figured if the other driver wanted their car fixed they would contact me since we were at fault for the accident. A month went by before I heard from the other driver.
When the other driver contacted me she asked when I was going to fix her car. I asked her where it was and she said at a tow yard. When I asked how long it had been there, she said since the day of the accident because he air bag went off and the car could not be driven due to extensive front end damage. The car was older so I figured it would be totaled and we would pay her for the value of the car instead of repairing it. One problem, my insured had $5,000 for property damage limits, and the other car was worth more than that. To make matters worse the tow yard was charging $50/day to have her car in their yard so she had racked up $1,500 in storage fees that would have to be paid before they would release the car. No insurance company will pay for storage for more than a day or two because these fees are easily avoided by removing your car from the facility. Insurance companies will almost always cover reasonable expenses associated with having your car towed from a storage facility to your house.
The thing that drove me crazy was that the other driver had coverage to fix her car but told her insurance company that she wanted to use our policy because it wasn't her fault. Well, now she can choose to take my $5,000 policy limit (which is not sufficient to cover her damages and expenses), or fix her car through her own policy (which she should have done to begin with) and let her insurance company worry about getting paid back. Unfortunately, she will be paying about $1,200 in storage fees no matter what she chooses to do because she did not mitigate her own damages.
The moral of the story: get your car fixed ASAP through your own policy and let your adjuster worry about getting paid back, that's their job.
Sunday, September 14, 2008
Pay your Premiums!!
I know it sounds like a no brainer, but a lot of people have problems with this concept. I have to admit that I have been guilty of this is the past. There was a time that I would get a notice from my auto insurance company and cast it to the side with the attitude that I would get to it when I get to it. One time I never really got to it. I woke up one morning and thought to myself, "You know what? I haven't paid my auto insurance for a while I should check on that." Turns out we had been driving around for about 3 months without insurance. I went through my stack of old mail and found a cancellation notice. Oops. Luckily for us we did not have an accident during that time period, but I meet plenty of people who are not as lucky. My point is that it is very important to have the right kind of coverage, but if you forget to pay for it you could find yourself in a world of hurt.
Real Life Example:
I received a new claim the other day with the words "Pending Renewal" across the top. I got excited because this means a little extra investigating was in order, and frankly I enjoy that sort of thing. Turns out that the person in question is a Realtor, and was showing a house to a client when somebody came down the road and smacked into his car. Actually, his sub compact car was hit by a full size truck going about 40 miles per hour. The guy's car was totaled.
As it turns out, the guy who hit his car was hit by another car first, and the other driver did not feel it was necessary to stop and exchange pleasantries and insurance information. But my insured is not worried because he has collision coverage and rental car benefits. The only problem is that he forgot to pay for these coverages and his policy expired. The following is my conversation with Mr. Procrastinator:
Me: I'd like to go over your insurance coverages with you . . .
Mr. Procrastinator (interrupting): Oh I know how this works, I have collision coverage and rental car coverage. When can I go get my rental car? I really need a car bad right now.
Me: Well . . . here's the thing. Right now your policy is in suspense for non payment of premium.
Mr. Procrastinator: Oh yeah, we got the bill and have not paid it yet. We went on vacation and it slipped my mind, I'll pay it this afternoon. So can I get that rental car now?
Me: Well . . . you see it's like this. I have to wait until I get confirmation from the Underwriting Department that you had an in force policy at the time of the accident (thinking to myself: Which will never happen because you just told me you haven't paid your bill yet).
Mr. Procrastinator: OK. I'll pay the bill now and call you right back.
Me: Actually . . . it doesn't work like that. It will take them a few days to bring your account up to date. Then I have to wait to see if they will afford coverage (fat chance).
Mr. Procrastinator: So what do I do?
Me: There is nothing you can do except wait and hope.
Here is the problem. This guy thinks that once he pays for his insurance that it will become effective all the way back to when it was cancelled. He thinks that the insurance coverage will be retroactive. It is not. It can't be. If it were then we would all drive around without insurance until we got in an accident, then we would pay our premium and have coverage. Think about it.
Now this guy is done for because the insurance company for the guy who hit him will say it was not their fault because they were hit by another car that fled the scene. The responsible party can not be located, and this guy technically does not have insurance. And the best part is I get to write this guy a letter:
Dear Mr. I'm Glad I'm Not You,
I've got good news and bad news. The good news is we have concluded our investigation. The bad news is we are not providing coverage for this accident. Here's a tip: In the future you may wish to purchase a day planner or set your account up on auto pay to help with the payment of your bills. That way when you get in another accident you'll actually have coverage! If you like I can give you the numbers of other people who have suffered your same fate, maybe you can create a support group.
Hugs and Kisses,
Your Adjuster
Real Life Example:
I received a new claim the other day with the words "Pending Renewal" across the top. I got excited because this means a little extra investigating was in order, and frankly I enjoy that sort of thing. Turns out that the person in question is a Realtor, and was showing a house to a client when somebody came down the road and smacked into his car. Actually, his sub compact car was hit by a full size truck going about 40 miles per hour. The guy's car was totaled.
As it turns out, the guy who hit his car was hit by another car first, and the other driver did not feel it was necessary to stop and exchange pleasantries and insurance information. But my insured is not worried because he has collision coverage and rental car benefits. The only problem is that he forgot to pay for these coverages and his policy expired. The following is my conversation with Mr. Procrastinator:
Me: I'd like to go over your insurance coverages with you . . .
Mr. Procrastinator (interrupting): Oh I know how this works, I have collision coverage and rental car coverage. When can I go get my rental car? I really need a car bad right now.
Me: Well . . . here's the thing. Right now your policy is in suspense for non payment of premium.
Mr. Procrastinator: Oh yeah, we got the bill and have not paid it yet. We went on vacation and it slipped my mind, I'll pay it this afternoon. So can I get that rental car now?
Me: Well . . . you see it's like this. I have to wait until I get confirmation from the Underwriting Department that you had an in force policy at the time of the accident (thinking to myself: Which will never happen because you just told me you haven't paid your bill yet).
Mr. Procrastinator: OK. I'll pay the bill now and call you right back.
Me: Actually . . . it doesn't work like that. It will take them a few days to bring your account up to date. Then I have to wait to see if they will afford coverage (fat chance).
Mr. Procrastinator: So what do I do?
Me: There is nothing you can do except wait and hope.
Here is the problem. This guy thinks that once he pays for his insurance that it will become effective all the way back to when it was cancelled. He thinks that the insurance coverage will be retroactive. It is not. It can't be. If it were then we would all drive around without insurance until we got in an accident, then we would pay our premium and have coverage. Think about it.
Now this guy is done for because the insurance company for the guy who hit him will say it was not their fault because they were hit by another car that fled the scene. The responsible party can not be located, and this guy technically does not have insurance. And the best part is I get to write this guy a letter:
Dear Mr. I'm Glad I'm Not You,
I've got good news and bad news. The good news is we have concluded our investigation. The bad news is we are not providing coverage for this accident. Here's a tip: In the future you may wish to purchase a day planner or set your account up on auto pay to help with the payment of your bills. That way when you get in another accident you'll actually have coverage! If you like I can give you the numbers of other people who have suffered your same fate, maybe you can create a support group.
Hugs and Kisses,
Your Adjuster
Friday, August 29, 2008
Police Reports
One of my biggest pet peeves is when I get a new claim and it has no information about anybody involved in the accident except for my insured. There is generally a comment at the end of the claim report that says, "Information in Police Report." Just in case you were wondering, if this is how you report your claim to your insurance company, what you are really telling your adjuster is, "Take your time, this isn't that important to me." Allow me to explain.
The process for an insurance company to get a police report is a bit lengthy. You have to put in a request to the actual department where the report was taken, and then wait for your request to make it through their hoops. Once they have done that they make sure your check clears. Once the money is in the bank, then they send you your police report (via bulk mail I think). Average time for me to get a report is one to two months. If the report was written by the LAPD it takes 4 to 6 months to get the report. I can't investigate my claim unless I know who was involved, and how to contact them or their insurance company. I have spoken to a lot of people who think that once the police show up they will take care of everything. Good Luck. I've had police reports where the officer pulled out whatever he found in the glove compartment and wrote it on the report. The insurance was expired, the registration out of date, and the officer didn't get a phone number for the driver. The police motto is to protect and serve, not to write stupid accident reports.
Real Life Example:
I get a claim that only has my insureds information listed. For the other vehicle it simply says, "red 4-door." The comment states: Info in police report (LAPD). When I check my insureds declaration page I notice he doesn't have collision coverage. So I call my insured:
Me: Do you have information on the other driver?
Insured: No.
Me: How about the car he was driving?
Insured: No.
Me: What do you have?
Insured (somewhat indignant): I told you it was in the police report!
Me: Do you have a copy of the police report?
Insured: No.
Me: Well, it looks like the LAPD took the report so it is going to take 4 months or so before I can contact the other insurance company.
Insured: So, what do I do now?
Me: Wait.
Insured: That's it?
Me: Yup.
Insured: Thanks for nothing! (hangs up)
Me (after insured hangs up): Ditto!
What does this guy expect from me? I guess I'm supposed to start searching the entire greater L.A. area for a 4-door red car with a dent in the front bumper being driven by a 30 year old man. That profile only matches about 50,000 cars in L.A., I'll get right on that!
Helpful tip:
When you are in an accident get as much information as you can about the other driver, any passengers in their car, and the other car itself. Take pictures if you can, it will help you remember where damage was, the position of the cars, skid marks, and other important info. Some people will not want to give information to you, but the following is a list of things you should obtain if you can:
1.)The year, make, model, color, license plate number, and VIN number of the other car
2.) The other Driver's name, address, phone number, drivers license number, date of birth, and physical description
3.)The other driver's insurance information, and vehicle registration.
4.) Name, address, and phone number of any passenger in the other car (and your car)
Some people will not want to give personal information. If this is the case, call the police and they will force the other party to share their information. If the party states they will leave if you call the police tell them you will get their plate # and report the accident as a hit and run when the police do get there (this should encourage them to stay). When the police get there, make sure you have all the information you need, don't rely on the police to get the information to your insurance company.
The process for an insurance company to get a police report is a bit lengthy. You have to put in a request to the actual department where the report was taken, and then wait for your request to make it through their hoops. Once they have done that they make sure your check clears. Once the money is in the bank, then they send you your police report (via bulk mail I think). Average time for me to get a report is one to two months. If the report was written by the LAPD it takes 4 to 6 months to get the report. I can't investigate my claim unless I know who was involved, and how to contact them or their insurance company. I have spoken to a lot of people who think that once the police show up they will take care of everything. Good Luck. I've had police reports where the officer pulled out whatever he found in the glove compartment and wrote it on the report. The insurance was expired, the registration out of date, and the officer didn't get a phone number for the driver. The police motto is to protect and serve, not to write stupid accident reports.
Real Life Example:
I get a claim that only has my insureds information listed. For the other vehicle it simply says, "red 4-door." The comment states: Info in police report (LAPD). When I check my insureds declaration page I notice he doesn't have collision coverage. So I call my insured:
Me: Do you have information on the other driver?
Insured: No.
Me: How about the car he was driving?
Insured: No.
Me: What do you have?
Insured (somewhat indignant): I told you it was in the police report!
Me: Do you have a copy of the police report?
Insured: No.
Me: Well, it looks like the LAPD took the report so it is going to take 4 months or so before I can contact the other insurance company.
Insured: So, what do I do now?
Me: Wait.
Insured: That's it?
Me: Yup.
Insured: Thanks for nothing! (hangs up)
Me (after insured hangs up): Ditto!
What does this guy expect from me? I guess I'm supposed to start searching the entire greater L.A. area for a 4-door red car with a dent in the front bumper being driven by a 30 year old man. That profile only matches about 50,000 cars in L.A., I'll get right on that!
Helpful tip:
When you are in an accident get as much information as you can about the other driver, any passengers in their car, and the other car itself. Take pictures if you can, it will help you remember where damage was, the position of the cars, skid marks, and other important info. Some people will not want to give information to you, but the following is a list of things you should obtain if you can:
1.)The year, make, model, color, license plate number, and VIN number of the other car
2.) The other Driver's name, address, phone number, drivers license number, date of birth, and physical description
3.)The other driver's insurance information, and vehicle registration.
4.) Name, address, and phone number of any passenger in the other car (and your car)
Some people will not want to give personal information. If this is the case, call the police and they will force the other party to share their information. If the party states they will leave if you call the police tell them you will get their plate # and report the accident as a hit and run when the police do get there (this should encourage them to stay). When the police get there, make sure you have all the information you need, don't rely on the police to get the information to your insurance company.
Wednesday, August 27, 2008
This Just In: Some People Lie!
I know, I know. I was as shocked as you were when I found out. I have a theory as to why I think people do it, but it's just a theory. Here it is:
Joe Blow gets into an accident. Let's say he backed into somebody as he was coming out of his parking space. He gets out of his car and feels like a complete idiot for backing up without looking. He apologizes profusely to the other driver. He's using phrases that he doesn't usually use like "My Bad" or "Sorry bro, I just spaced." Everything seems cool, you exchange insurance info and leave. On his way home Joe Blow sees a buddy of his and tells him what happened. This buddy tells Joe Blow that he should tell his insurance company that the other guy rear ended him, that way his insurance premiums won't go up, and the insurance company will waive his deductible. And that's what he does. Next thing you know the other insurance company is calling you to find out why you go around rear ending people and pretend that they backed into you. Good thing you have collision coverage and rental car benefits or you would be S.O.L. (straight outta luck).
Real Life Example:
Joe Cool is parallel parked against the curb. He maneuvers his car until he gets to the point where he can back out of his space. He has no time to look behind him so he rockets in reverse and crashes right into the car that was waiting for his spot. Joe Cool feels like an idiot, offers to pay for the damages out of his own pocket so his insurance premium doesn't go up. My insured politely declines and states he would feel more comfortable using insurance companies. Joe Cool replies, "Fine, be that way" (I'm paraphrasing). When I call his insurance company, it seems he has informed then that he was rear ended while he was minding his own business waiting for a parking spot. I swear under my breath. The world keeps turning.
Moral of the story: Some people value lower insurance premiums more than their own integrity. Folks, if you're in an accident tell the truth about what happened. Your insurance premiums may go up, but at least you won't go to Hell for being a big fat liar!
Joe Blow gets into an accident. Let's say he backed into somebody as he was coming out of his parking space. He gets out of his car and feels like a complete idiot for backing up without looking. He apologizes profusely to the other driver. He's using phrases that he doesn't usually use like "My Bad" or "Sorry bro, I just spaced." Everything seems cool, you exchange insurance info and leave. On his way home Joe Blow sees a buddy of his and tells him what happened. This buddy tells Joe Blow that he should tell his insurance company that the other guy rear ended him, that way his insurance premiums won't go up, and the insurance company will waive his deductible. And that's what he does. Next thing you know the other insurance company is calling you to find out why you go around rear ending people and pretend that they backed into you. Good thing you have collision coverage and rental car benefits or you would be S.O.L. (straight outta luck).
Real Life Example:
Joe Cool is parallel parked against the curb. He maneuvers his car until he gets to the point where he can back out of his space. He has no time to look behind him so he rockets in reverse and crashes right into the car that was waiting for his spot. Joe Cool feels like an idiot, offers to pay for the damages out of his own pocket so his insurance premium doesn't go up. My insured politely declines and states he would feel more comfortable using insurance companies. Joe Cool replies, "Fine, be that way" (I'm paraphrasing). When I call his insurance company, it seems he has informed then that he was rear ended while he was minding his own business waiting for a parking spot. I swear under my breath. The world keeps turning.
Moral of the story: Some people value lower insurance premiums more than their own integrity. Folks, if you're in an accident tell the truth about what happened. Your insurance premiums may go up, but at least you won't go to Hell for being a big fat liar!
Saturday, August 23, 2008
Rental Car Benefits
When you purchase automobile insurance you have the opportunity to purchase 1st party coverages. A 1st party coverage is a benefit enjoyed by the policy holder in the event of an accident. Rental Car Benefits are a first party coverage, and one that I highly recommend.
The way it works is that when you are in an accident you will be provided with a rental car during the repairs to your vehicle. Now, if you have 8 cars in you household and only 3 drivers, rental car benefits may be a waste of money. However, if you have only one car and you need it for transportation to work in order to support your family, rental car benefits may be very important. Renting a car is not cheep (at least $20/day for a cheap compact car), and it takes a long time to repair a vehicle (1-2 weeks for fender benders). So if you are in a moderate accident and are looking at 3 weeks of repair time (assuming the shop doesn't have to order parts), and you are paying $20/day plus tax for a rental car, you are looking at upwards of $400 in rental car expense out of your own pocket. Compare that to about $5/month per vehicle for rental car benefits on your auto policy.
Real Life Example:
I recently received a claim where my insured driver pulled from a parking garage and was struck by an oncoming car. My insured argued that the other party should have used more caution when approaching a parking garage with an obstructed view. I strategically advised my insured that he should have heeded the same advice when exiting a parking garage with an obstructed view. Long story short, he is at fault for violating the other driver's right of way. Luckily he has collision coverage, but sadly no rental car benefits. His car will be in the shop for 5 weeks, and he has no other mode of transportation or the money needed to rent a car. I was tempted to send the following letter:
Dear Valued Customer,
I am not pleased to inform you that you do not have rental car benefits on your policy. Sucks to be you! But look on the bright side, now you can learn the ins and outs of the public transportation system in your community, and you are sure to meet lots of new and interesting people. Enclosed for your convenience you will find the bus schedule for your area, and a coupon for a discount on a bus pass. Happy Trails!
Love,
Your Adjuster
The way it works is that when you are in an accident you will be provided with a rental car during the repairs to your vehicle. Now, if you have 8 cars in you household and only 3 drivers, rental car benefits may be a waste of money. However, if you have only one car and you need it for transportation to work in order to support your family, rental car benefits may be very important. Renting a car is not cheep (at least $20/day for a cheap compact car), and it takes a long time to repair a vehicle (1-2 weeks for fender benders). So if you are in a moderate accident and are looking at 3 weeks of repair time (assuming the shop doesn't have to order parts), and you are paying $20/day plus tax for a rental car, you are looking at upwards of $400 in rental car expense out of your own pocket. Compare that to about $5/month per vehicle for rental car benefits on your auto policy.
Real Life Example:
I recently received a claim where my insured driver pulled from a parking garage and was struck by an oncoming car. My insured argued that the other party should have used more caution when approaching a parking garage with an obstructed view. I strategically advised my insured that he should have heeded the same advice when exiting a parking garage with an obstructed view. Long story short, he is at fault for violating the other driver's right of way. Luckily he has collision coverage, but sadly no rental car benefits. His car will be in the shop for 5 weeks, and he has no other mode of transportation or the money needed to rent a car. I was tempted to send the following letter:
Dear Valued Customer,
I am not pleased to inform you that you do not have rental car benefits on your policy. Sucks to be you! But look on the bright side, now you can learn the ins and outs of the public transportation system in your community, and you are sure to meet lots of new and interesting people. Enclosed for your convenience you will find the bus schedule for your area, and a coupon for a discount on a bus pass. Happy Trails!
Love,
Your Adjuster
Sunday, August 17, 2008
Don't Be Greedy!
Getting in an accident does not equal Winning the Lottery!
True Story:
Our insured is at a two way stop sign and goes to make a left hand turn. Meanwhile a tough guy in a sports car is driving by with no stop sign. Our insured hits the sports car. Our insured is at fault for this accident and we pay for damages to Mr. Tough Guy's sports car. It was a very minor accident (Under $50 damage to the vehicle being driven by our insured for some compound and 5 minutes of labor to buff out a scratch). Well, Mr. tough guy decides he was seriously injured and needs to go see a Dr. He proceeds to rack up $27,000+ in medical bills from Dr. Smart Guy, and asks us to pay for the bills plus a little extra for his "pain and suffering."
We know he is full of crap, but we are not in the mood to deal with his drama so we offer him a couple thousand dollars to make him go away. Problem is, he gets greedy. He wants a big payday. We hit him, so he believes he is entitled to a big fat check. He thinks it's a good idea to file a huge lawsuit against us and our insured. What followed next was poetic justice.
We go to court, and we convince the jury that Mr. tough guy is full of crap. The jury rules in our favor. What does that mean? Well, first of all Mr. Tough Guy got $0 from us for his "injuries." But, since the jury ruled in our favor, Mr. Tough Guy has to pay for our defense costs totaling over $20,000.
Let's recap: A.) Mr Tough Guy gets hit by another car (not his fault) B.) Mr. Tough Guy thinks he hit the jackpot C.) Mr. Tough Guy turns down thousands of dollars because he gets greedy D.) Mr Tough Guy now has a huge debt.
The Moral of the story? Don't be Greedy.
True Story:
Our insured is at a two way stop sign and goes to make a left hand turn. Meanwhile a tough guy in a sports car is driving by with no stop sign. Our insured hits the sports car. Our insured is at fault for this accident and we pay for damages to Mr. Tough Guy's sports car. It was a very minor accident (Under $50 damage to the vehicle being driven by our insured for some compound and 5 minutes of labor to buff out a scratch). Well, Mr. tough guy decides he was seriously injured and needs to go see a Dr. He proceeds to rack up $27,000+ in medical bills from Dr. Smart Guy, and asks us to pay for the bills plus a little extra for his "pain and suffering."
We know he is full of crap, but we are not in the mood to deal with his drama so we offer him a couple thousand dollars to make him go away. Problem is, he gets greedy. He wants a big payday. We hit him, so he believes he is entitled to a big fat check. He thinks it's a good idea to file a huge lawsuit against us and our insured. What followed next was poetic justice.
We go to court, and we convince the jury that Mr. tough guy is full of crap. The jury rules in our favor. What does that mean? Well, first of all Mr. Tough Guy got $0 from us for his "injuries." But, since the jury ruled in our favor, Mr. Tough Guy has to pay for our defense costs totaling over $20,000.
Let's recap: A.) Mr Tough Guy gets hit by another car (not his fault) B.) Mr. Tough Guy thinks he hit the jackpot C.) Mr. Tough Guy turns down thousands of dollars because he gets greedy D.) Mr Tough Guy now has a huge debt.
The Moral of the story? Don't be Greedy.
Don't be an Idiot
I got a new claim the other day that seemed pretty straight forward. Our insured rear ended another vehicle. Should be pretty quick and painless as the other party is not injured, and has not hired an attorney. So I give my insured a call and asked him what happened, and this is our exchange:
Me: So, tell me how the accident happened
Idiot Driver: Well, I was driving on the freeway and this dude in the other lane wanted to merge into my lane.
Me: (thinking to myself) Could be more complicated if the other guy cut off my insured and slammed on the brakes.
Idiot Driver: People cutting me off in traffic is kind of a pet peeve for me, so there was no way I was going to let this guy get into my lane.
Me: (thinking to myself) Uh oh
Idiot Driver: So I sped up to block the other dude from getting into my lane.
Me: O.K.?
Idiot Driver: And that's when I rear ended the guy in front of me.
Me: (What I wanted to say) A.) So, how'd that work out for ya? or B.) Good job Idiot!
Me: (What I actually said) Well, accidents happen!
So, this guy wants to be king of traffic and decide who gets to go in what lane, and while enforcing his traffic law hits an innocent bystander. Now he is out $500 for his insurance deductible, his premiums will go because he was at fault for an accident, we have to pay to fix the other car, and my man was late for work. But the good news is the other car didn't get into his lane!
The moral of the story? Don't be an Idiot!
Me: So, tell me how the accident happened
Idiot Driver: Well, I was driving on the freeway and this dude in the other lane wanted to merge into my lane.
Me: (thinking to myself) Could be more complicated if the other guy cut off my insured and slammed on the brakes.
Idiot Driver: People cutting me off in traffic is kind of a pet peeve for me, so there was no way I was going to let this guy get into my lane.
Me: (thinking to myself) Uh oh
Idiot Driver: So I sped up to block the other dude from getting into my lane.
Me: O.K.?
Idiot Driver: And that's when I rear ended the guy in front of me.
Me: (What I wanted to say) A.) So, how'd that work out for ya? or B.) Good job Idiot!
Me: (What I actually said) Well, accidents happen!
So, this guy wants to be king of traffic and decide who gets to go in what lane, and while enforcing his traffic law hits an innocent bystander. Now he is out $500 for his insurance deductible, his premiums will go because he was at fault for an accident, we have to pay to fix the other car, and my man was late for work. But the good news is the other car didn't get into his lane!
The moral of the story? Don't be an Idiot!
Know Your Insurance Coverage
The Following is a Public Service Announcement:
I can not stress how important it is to know how much insurance coverage you have. The State of California only requires you to carry 15/30/5 liability coverage. So what does that mean? I'll explain.
The first 2 numbers (15/30) represent bodily injury coverage. What it means is that for each accident you are in your insurance company can pay up to $15,000 for injuries to any one person, and up to $30,000 total for all injuries. Sounds like a lot, right? Guess again. If somebody in the other car receives treatment at the scene of the accident, or has to be air-lifted to a hospital, you will most likely be facing a limits problem. Medical treatment is expensive.
The last number (5) represents property damage liability coverage. This means that if you are at fault for an accident your insurance company can only pay up to $5,000 for that accident. Sound like a lot? Nope! Let me put it to you this way, I can do $5,000 worth of damage to a car with my foot if I kick it in the right place. Cars are expensive to fix, believe me!
You may be saying to yourself, so what? Well, here's what's what. If you cause more damage than your policy covers guess who is on the hook? If you said yourself, you are correct. The other driver, or even worse, the other insurance company is coming to get you! And we gonna gets our money, not half of it, not some of it, but all our cash!
Real Life Example:
I have a customer who has 15/30/10 limits. He proceeded to make a left hand turn and crash into a $70,000 car. My driver was at fault, and the other car was jacked. So in short, my driver has $10,000 worth of coverage, and the other driver has $30,000 in damages. The other insurance company paid for the other driver's damages because he has collision coverage, and now wants to be paid back. We can only give them $10,000, and as it turns out they are not willing to look the other way on the extra $20,000. So I have to send a letter to my customer:
Dear Mr. Customer,
Congratulations! You're being sued! And the best part is you've learned an invaluable lesson about policy limits! In the future you may want to A.) Get real policy limits, or B.) Hit a cheaper car. See you in court!
Love,
Your Adjuster
The moral of the story? If you have $10,000 limits, don't hit a $70,000 car :)
I can not stress how important it is to know how much insurance coverage you have. The State of California only requires you to carry 15/30/5 liability coverage. So what does that mean? I'll explain.
The first 2 numbers (15/30) represent bodily injury coverage. What it means is that for each accident you are in your insurance company can pay up to $15,000 for injuries to any one person, and up to $30,000 total for all injuries. Sounds like a lot, right? Guess again. If somebody in the other car receives treatment at the scene of the accident, or has to be air-lifted to a hospital, you will most likely be facing a limits problem. Medical treatment is expensive.
The last number (5) represents property damage liability coverage. This means that if you are at fault for an accident your insurance company can only pay up to $5,000 for that accident. Sound like a lot? Nope! Let me put it to you this way, I can do $5,000 worth of damage to a car with my foot if I kick it in the right place. Cars are expensive to fix, believe me!
You may be saying to yourself, so what? Well, here's what's what. If you cause more damage than your policy covers guess who is on the hook? If you said yourself, you are correct. The other driver, or even worse, the other insurance company is coming to get you! And we gonna gets our money, not half of it, not some of it, but all our cash!
Real Life Example:
I have a customer who has 15/30/10 limits. He proceeded to make a left hand turn and crash into a $70,000 car. My driver was at fault, and the other car was jacked. So in short, my driver has $10,000 worth of coverage, and the other driver has $30,000 in damages. The other insurance company paid for the other driver's damages because he has collision coverage, and now wants to be paid back. We can only give them $10,000, and as it turns out they are not willing to look the other way on the extra $20,000. So I have to send a letter to my customer:
Dear Mr. Customer,
Congratulations! You're being sued! And the best part is you've learned an invaluable lesson about policy limits! In the future you may want to A.) Get real policy limits, or B.) Hit a cheaper car. See you in court!
Love,
Your Adjuster
The moral of the story? If you have $10,000 limits, don't hit a $70,000 car :)
Collision Coverage: Just Do It!
The following is a public service announcement:
If you do not have collision coverage on your automobile insurance policy . . . YOU ARE A MORON! Let's face it, accidents happen, it only takes one or two seconds of distraction for you to be in an accident. If you have children in the car you probably spend more time looking at them then you do looking at the road. If you get in an accident and you don't have collision coverage you are at the mercy of the other driver involved in the accident. Even if the accident is not your fault, you are not in the clear. Why you ask? Let me explain.
This may come as a surprise to many of you, but people do not always tell the truth. What?!? People actually lie? The answer is yes. As an adjuster I can comfortably say that about 98% of people involved in an auto accident lie to their adjuster. The other 2% are minors who quickly change their stories once their parents find out what they have told me. So, if you do not have collision coverage your car is not getting fixed unless the other insurance company decides they feel like paying for it (not very often).
Collision coverage is great because you get your car fixed regardless of fault. You can crash your car into anything or anybody and we'll fix it, no questions asked. But you'll probably lie at about who is at fault because you don't want your premiums to go up. The other party's car may not get fixed because they don't have collision coverage, but that's their problem!
If you do not have collision coverage on your automobile insurance policy . . . YOU ARE A MORON! Let's face it, accidents happen, it only takes one or two seconds of distraction for you to be in an accident. If you have children in the car you probably spend more time looking at them then you do looking at the road. If you get in an accident and you don't have collision coverage you are at the mercy of the other driver involved in the accident. Even if the accident is not your fault, you are not in the clear. Why you ask? Let me explain.
This may come as a surprise to many of you, but people do not always tell the truth. What?!? People actually lie? The answer is yes. As an adjuster I can comfortably say that about 98% of people involved in an auto accident lie to their adjuster. The other 2% are minors who quickly change their stories once their parents find out what they have told me. So, if you do not have collision coverage your car is not getting fixed unless the other insurance company decides they feel like paying for it (not very often).
Collision coverage is great because you get your car fixed regardless of fault. You can crash your car into anything or anybody and we'll fix it, no questions asked. But you'll probably lie at about who is at fault because you don't want your premiums to go up. The other party's car may not get fixed because they don't have collision coverage, but that's their problem!
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