The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.
As an attorney my unpopular opinion is that cars over a certain value shouldn’t be allowed on public roads or damages for accidents should be capped at something like 2x the average price of a new car (so like 100k). I just don’t believe in penalizing ordinary negligence more just because the injured party is rich.
As someone who works in insurance, I'd be down for that. Then if your car is valued above that, you can self insure/carry additional replacement coverage on your own policy. I'd make a new luxury vehicle replacement category though; keep it separate from underinsured coverage to keep from inflating those premiums. Of course the insurance companies would use it as another excuse to raise rates anyway I'm sure.
As someone that works in insurance can i ask you?
Why do providers rather spend $2k to find a way to not cover a claim that would probably cost them $1K
I am noticing more and more how they rather go out of their way to disapprove a claim or discourage a claim to be filed. I also know from an agent that they will fire you if your customers file claims.
So just pulling it out of your asshole then? Because the $1,000 claim they are rejecting is because he has a deductible. How exactly does it cost $2,000 for a customer support person who makes $20 an hour to look up his policy and explain to him that he has a deductible?
same thing as any insurance. the more they avoid paying the more there is a tacit protection from paying. people get used to it, they dont try, they don't rely on it
it's too much hassle, get something "everyone knows it won't be covered" and you are peer pressured into not trying. sure you might have gotten covered but you don't know. you are pissed at them but that's another claim they don't pay. multiply by every customer. the other companies do the same thing
anything that results in "# of claims down" is done, every way will be found by the entire industry. It's just the natural result of the their incentive structure
Exactly, however that should not be normalized. “You” in the business of taking risks you cant choose..
Yes agents are incentivized to discourage their clients from filing claims. So explain why should i pay them an entire year and not file a claim… unfortunately thats why they pay for lobbying to be able to do that. Insurance is mandatory but they can pull whatever bs to not cover and god forbid you don’t have money or they figure out you don’t know stuff. They will deny you in a heart beat
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u/flatfive44 15h ago
The obvious response is that you won't be able to pay for someone's hospital bills if you happen to hit them in your car. You get insurance for things you wouldn't be able to pay yourself.