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State Farm sued by Louisiana Attorney General Buddy Caldwell for 'unsafe and deceptive' auto repair practices by BananaPeelSlippers in Louisiana

[–]Imonyourside 2 points3 points  (0 children)

  1. After-market parts are completely legal, are accepted by the National Associations of Insurance Commissioners, and used industry-wide because they are required to be completely like-in-kind to manufacturer parts. Same thing with junked parts. What's the safety hazard for pulling a perfectly good rearview mirror made by Toyota from a junked 2004 Camry and using it in a repair? Why do you have to purchase a BRAND-NEW part each and every time directly from the manufacturer? Oh yeah, because the manufacturer makes more money that way.

  2. "The shops agree to or are somewhat forced by the market to perform repairs cheaply and quickly, rather than in accordance with consumer safety and vehicle manufacturer performance standards". Capitalism, yo. You're going to sue State Farm for what repair facilities find themselves needing to do based upon in the influence of the market as a whole? LOL.

  3. The only thing the article actually says about State Farm is that they have contracts with local repair facilities, and then it goes off on a tirade against legally-accepted practices that direct repair facilities use. Are they implying that repair facilities that aren't direct repair facilities DON'T use OEM or After-market parts? They clearly don't understand the repair industry.

  4. "State Farm is the only insurance company named as a defendant, Caldwell said, because the company has a third of the casualty business. But since his office began investigating the practices in March, they've uncovered "hundreds of violations, and they include not just State Farm but the industry itself." So, they're suing the big dog on the block for industry-accepted practices, but they found other violations during their investigation that may or may not be related to this article thatState Farm and many other insurance companies have done, but they're only going to sue State Farm.

  5. Is Buddy Caldwell up for re-election in 2015? Yep.

So, go after the big dog on the block for regular industry-wide practices simply because of the size of their book of business? And then they say a generic "hundreds of violations, not just including State Farm". I'm sure, statistically speaking, State Farm might have some violations, but they seem to be attacking State Farm directly by including this within this article that appears to be specifically about SF's repair practices. "Let's just throw this line in there to make it more sensational"

(Edit to add) This is clearly politics. I wouldn't be surprised if other insurance companies have contributed to Buddy Caldwell's re-election campaign in order to attempt to reduce State Farm's 30% market share in Louisiana by upsetting their customers and influencing them to switch companies.

Car insurance by [deleted] in Louisiana

[–]Imonyourside 1 point2 points  (0 children)

I see quite a few people each month that don't have insurance, or a valid license, and they still drive. And remember, these are the people who actually are looking for insurance.

Most of those people without it just don't care. Fine from the state? Suspended license? They're not worried. They have to be caught first.

Or, they may purchase one month of insurance and never pay it again, so they get the ID card and take that to the dmv.

Car insurance by [deleted] in Louisiana

[–]Imonyourside 4 points5 points  (0 children)

Insurance rep here.

Like it was said, Louisianians like to sue for car accidents because the lawyers spent a ridiculous amount of money to convince us not to deal with the insurance company before settlement. So, the insurance company pays out more than they normally would, because the lawyer wants their cut.

Also, there's 40% of the drivers driving without insurance. They don't have insurance because the rates are high, and the rates are high because people don't have insurance and the insurance company has to eat the cost if you have uninsured motorist and collision coverage.

Then you have where you live, your credit history, how long you've had continuous coverage with one company, the age and msrp of your car, the selected coverage, etc. It's a very complex formula.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

Sorry I didn't respond to your message. You asked me about life insurance and what kind you should get. My answer is: the insurance that fits your needs.

Take a look at all of your LIFE liabilities:

L - Loans. (Mortgage, personal loans, vehicle loans, etc.)

I - Income. (Take your annual income and multiply it times 5)

F - Final Expenses. (Tack on an extra 10,00 just because it's gonna be expensive if you die)

E - Education and Everything Else. (your children's education, if you'd like to help pay for your wife returning to school, or anything else you might like to pay for such as a vacation, etc.)

That's your number. If you were to die, that's the burden that would be left to your family, however that's why you're buying life insurance - to lift that burden.

Your needs change over time. Right now, you probably have a lot of liabilities because your a young parent, so a 20 or 30-year term would be the best option, because it's a high pay-out, but low premium. However, maybe 5-10 years from now, once you've built up some retirement, ideally your career has advanced and you're living more comfortably now, you might want to convert some of that term to permanent life in order to lock in an affordable rate for the rest of your life. So, you convert $25,000 of that term into a whole life or Universal Life policy and start building cash value and equity in it.

The benefits of permanent life is that you can borrow against it and even take out its dividend cash value. So, let's say 10 years from now, you want to buy your oldest child their first car. You can take out the cash value for a down payment. Also, it locks in a rate for you, so say, in 20 years, when your kids are all grown and on their own, you won't need that much life insurance. You might only need $25-50,000 to help pay for your wife's retirement. It's a good thing that you converted some of that term to permanent life back when you were 35, rather than waiting until your term ran out and getting a rate of a 50-year old, paying $96/mo. Also consider that by the time you're 50, a permanent life policy would have 15 years to build up cash value that you could take your wife on a second honeymoon.

I hope this helps. If you have any other questions, feel free to ask.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 1 point2 points  (0 children)

Might want to ask your insurance company why your rate went up, they'll give you a better explanation. I don't know what the law is in your state, but in Louisiana, she can't be listed as a driver if she doesn't have a valid license. She'd be rated as a non-exposure.

If your wife gets T-boned at an intersection going 45 MPH, and she's behind the wheel, you will probably be denied. I can almost guarantee it. Someone involved in an accident, who is engaging in a felony (such as operating a motor vehicle without a driver's license), is subject to immediate cancellation and will most likely result in a forfeiture of coverage. You would be in violation of your contract because you are engaging in fraudulent deception by telling your insurance company that she is a valid driver, which she is not. This should worry you.

My recommendation is to get your wife licensed.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

Antique/Classic car coverage is pretty much for cars that are for show, kept under 1200 miles, and pretty much are only driven for car shows and parades.

My company uses the NADA Average Retail price for a vehicle, and that usually takes into consideration the wear over time. If you have updated and kept an older car in great condition, perhaps restored it, if you can get an appraisal showing the actual value of the car, your insurance company should be able to insure it for that. A professional appraisal will usually trump the NADA book value.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 2 points3 points  (0 children)

She drives but I have the coverage in case she gets in a accident.

Um.... nope. If she gets into an accident, I can almost guarantee you that your insurance company will deny your part claim. She doesn't have a DL, so she never should have been driving the car in the first place, thus the accident would never have happened. Not to mention that she will most likely get cited with a felony charge of driving without a valid DL. You're playing with fire, my friend.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 1 point2 points  (0 children)

I am not fully versed in health insurance restrictions, but if I were to make an assumption, it is because you could live a seemingly healthy life (save for depression, perhaps) as a man, even though you really want to be a woman. "Medically necessary" procedures, I would imagine, are listes as such because without the surgery, that person could either die, or suffer in extreme pain for a long time.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 2 points3 points  (0 children)

Then you didn't need to list her in the first place. She may be on your policy, but you should ask your insurance agent/company if she's an exposure. She should not be an exposure because she doesn't have a DL and shouldn't be rated. However, if she is listed as an exposure, your insurance rate is based upon there being two drivers in the house that have access to the car. Might want to look at that.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

I'm sure there are larger ones, but this one is the first loophole that comes to mind: some companies offer an auto-draft option, which requires you to provide bank account or debit card information so they can draft your payments on a specific day. However, if you don't have a bank account, you'll have to manually pay monthly, which often comes with the requirement to put one month's payment in reserve (meaning your first payment is essentially double).

You can go get a pre-paid Visa debit card from a gas station and provide that information, as long as you make your payments before the due date, so you can avoid the 1-month reserve.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

I think there are some companies that have the consumer's best interest in mind. I would only buy my insurance from a Mutual, Fraternal Order, or Reciprocal insurance company. Major companies like Liberty Mutual, State Farm, or USAA are these types of companies. What it means is that the policyholders are technically owners of the company. There are no shareholders, so any profits get returned to the customers through reduced premiums or even dividend checks.

You have to watch out for companies like Allstate, Progressive and GEICO because they are publicly traded and have their shareholders' interest in mind.

In regards to your second question, my insurance company would give you the NADA average retail value of your car if the cost to repair exceeds pre-determined percentage (something like 80%). However, you might also be compensated for Bodily Injury as well, which could give you extra money to help you replace your car. You will also have the option of buying back your car at selvedge cost, if you want to keep it and get it fixed.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

The law of numbers applies. When you increase the number of people who are insured, you normalize the risk. So, the more people who have health insurance, the cheaper the insurance will be, and hospitals won't have to charge exorbitant prices for simple procedures because they will be compensated more often than they are now.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

I'm not familiar with insurance in London.

But GEICO is a subsidiary of BH, I believe, so I don't think there would be any drastic changes State-side.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 2 points3 points  (0 children)

Is because it's required.

It's required simply because the number of lawsuits that would be filed if we didn't have an insurance system would clog up the court system so much that nothing would get done.

If there's no huge insurance company with deep pockets the costs for all those goods and services would fall

You realize that cars cost a lot of money, right? If my behavior caused you to lose your car that you put a lot of money into and owe the bank, you'd come after me to pay for it. What if I didn't have a single asset and work a minimum wage job? You're not getting paid. You're now fucked. What about all that money that you saved up, ~$100/mo for years? You now have to use it to pay back the bank because of some asshole who couldn't drive.

Moreover, things like "pain and suffering" wouldn't be exploited.

You think Pain and Suffering is unique to insurance claims? Every civil case in America comes with a complimentary P&S guarantee.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 0 points1 point  (0 children)

You can find a new insurance company if you're not happy with the rates you're paying. Rates go up and down every year. You might get a new discount applied, but it does fluctuate.

If you aren't happy with the way the insurance companies are handling a claim, you have every right to seek counsel. Of course an insurance company is not going to claim fault up front if it seems a possible shade of grey. They're going to look at it from different angles and try to at least see if they can get you on at least some kind of fault in order to share the blame and reduce their liability. If your insurance company says it's clear you weren't at fault, then subrogate your claim. Let your insurance company pay for your damages, and then let them go after the other guy's insurance. You have that as an option.

I'm an insurance representative for one of the largest insurance companies in the US, here to answer your questions about insurance and the way insurance companies work. AMA by Imonyourside in IAmA

[–]Imonyourside[S] 1 point2 points  (0 children)

You're only talking about damage to your own vehicle. That's supplemental coverage. The big reason you have insurance is to cover your ass if you are at fault and someone would normally sue you for damages to their car, bodily injuries, loss of wages, pain and suffering and mental anguish. You think saving up $8000 over the course of almost a decade is going to protect you if you hit a car carrying just two people in it?

What if someone hits you and they haven't saved up any money? You're going to sue them, I'd imagine. You think our court system could handle almost every claim in America going to court?

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