Comments on: When Insurance Covers Routine Expenses….

By: Arizona Insurance

Arizona Insurance — Thu, 10 Sep 2009 14:05:14 +0000

It is very interesting how they can flatly offer $500 in grocery money on a job they may get paid $250 for. Bizarre industry for sure.

By: Rick

Rick — Fri, 04 Sep 2009 13:17:35 +0000

Last time my windshield was replaced (here in AZ) I went with a company that offered 50 free dinners at a local chain rest. Turned out was coupons, each good for a specific week in the future. Could not be used earlier or later than that specific week. Good for entree only, not drink, dessert, tax, tip, etc. Obviously they bought these from the rest. at a discount, on the assumption that the majority of the coupons would not be used.

By: Steven

Steven — Fri, 04 Sep 2009 05:29:48 +0000

Actually, the insurance companies can and do raise rates for windshield claims when the consumer is shopping around for new carriers. So if you have no comprehensive losses versus 3 losses – all of which happen to be windshield claims, the rate are usually higher.

By: Dennis Elias

Dennis Elias — Thu, 03 Sep 2009 22:26:50 +0000

Here in AZ the desert environment and massive building projects create geologic projectiles everywhere. Many cars sport star bursts… and with the high summer heat, exploding cracked windshields are not uncommon. I’ve replaced at least three windshields in the last couple years… the repairs are part of my comprehensive coverage. The glass company and the insurance company handle everything. I get no check. I like the law and no one in their right mind would throw a rock throw their own windshields to defraud an insurance company as you can’t get a direct cash payout… and more importantly driving without a windshield here is like facing the exhaust from a jet engine.

By: Greg

Greg — Thu, 03 Sep 2009 13:11:17 +0000

I replaced my windshield about ten years ago, in Connecticut, and paid for it out of pocket, because it was cheaper than going through the insurance company. In other words, the bill for the insurance company was higher. Perhaps there’s some sense to that, since a claim involves having someone do extra work to process it. That’s exactly why covering routine medical checkups is stupid. (It may make sense as a selling point for an insurance policy, or to reap the benefits that may exist from encouraging people to seek routine care. But it doesn’t make financial sense.)

A requirement that health care providers charge each purchaser the same amount, except for legitimate savings from economies of scale, would help stop cost shifting and make individual insurance and paying out of pocket less expensive. It’s not a libertarian suggestion, but I really want to compel those European nations to pay the same for American drugs.

By: bobby b

bobby b — Wed, 02 Sep 2009 08:00:50 +0000

Here’s the skinny: Legislator – usually a strangely wealthy one – pushes through a bill that says that, if an insurer doesn’t immediately and promptly pay a claim on a windshield, the insurer has acted in “bad faith” (which stems from the age-old concept that parties to a contract always take on an implied covenant – a promise – of good faith and fair dealing) and so the insurer has to pay the bill, plus any and all attorneys fees that one had to spend to get that bill paid.

So, the smarmy types who do windshields go out and find a smarmy type doing lawyering work, and they become best friends. Windshield vermin gathers in customers (“it’s free! We’ll just collect from your insurer like we’re supposed to!”), replaces the $200 windshield, and sends Ace Insurance a bill for $2600.00.

Claim Guy gets the bill, says “oh, molest ME!”, swears he’ll see windshield vermin in hell before he’ll pay such a claim, and about one day after he gets the bill, Smarmy Windshield Lawyer Vermin drops a Summons and Complaint on him, suing Ace for refusing to pay, along with the hold-up letter that says “We’re suing you! You can fight us, and maybe win, and in the process you’ll pay your lawyers hundreds of thousands of dollars in fees that you won’t get back from us – or just send us a check today for $25,000.00 and we’ll forget the whole thing!”

Just remember – if you live in a state where you see steaks for windshield work, or cash, or trips, chances are you have a legislator taking big bribes to set it all up, and you can thank her or him when you realize that your auto insurance just doubled again.

By: MikeinAppalachia

MikeinAppalachia — Wed, 02 Sep 2009 05:09:37 +0000

Many, if not most, of those offering “$500″ in gas or groceries are now,or soon to be out-of-business if not in court facing fraud charges. They typically have an initial fee of (say) $35-$50, then one is to submit receipts for purchases that will be refunded over many months by either a percentage of your purchases or whatever. When their pyramid crashes, they disappear. The Glass, Auto Sales, Roofing, whatever Co. received a small fee and a share of the initial fee for every one they introduced to the procedure.

By: Michael

Michael — Wed, 02 Sep 2009 01:54:58 +0000

Margaret roof work costs more than $500. The roofing company could have cut a deal with a shingle supplier for $5 off per pack or found day works for $80 rather than $100. The company could also be cutting its profits to gain market share in a new area. The deal doesn’t sound fishy to me.

By: Craig

Craig — Wed, 02 Sep 2009 00:32:42 +0000

I hold out for a box of steaks when I get my windshield replaced, although didn’t a law (either federal or in some state(s)) make that illegal recently?

By: sabril

sabril — Wed, 02 Sep 2009 00:21:56 +0000

dr kill, it’s amazing how wealthy the US is given how few people actually do productive work.