Simply Junior

There are so many different versions of the idiom. Try, “Expect the worst. Hope for the best.” or “Expect the worst and you’ll never be disappointed.” or “Prepare for the worst. Plan for the best.” You get the idea, particularly when it comes to dealing with your insurance company. It’s a strange reality but, no matter where you go, insurance companies always seem to have a reputation that, as a policy holder making a claim, you will end up like something the cat dragged in. The problem we all face is the profit motive. Although it would be great if every large corporation was full of the milk of human kindness, the directors and executives are driven by the desire for more wealth. They seize every opportunity to take the extra dollar for giving us less. In the case of insurance, the companies are rather like the big bad wolf that blows your house down rather than paying to repair the leaking roof. So you always have to plan on the basis you will be in for a fight if you make a claim. That means opening and keeping an up-to-date file on everything you say to the insurer about the policy and any claims you might make. The more comprehensive your records the better. If you must speak to a representative of the company, whether in the flesh or on the phone, get a name and always write a letter confirming what was said and what, if anything, was agreed. Yes, it will take up a few minutes of your time. But you should always be able to produce contemporaneous records – a day-by-day record of representations, promises and action.

You are rolling your eyes. All that hassle. Why bother? Let’s take Massachusetts as an example. Five of the largest companies insuring vehicles all managed to make the same data entry mistake. There is this wonderful “place” called the Comprehensive Loss Underwriting Exchange (CLUE). All companies pool information about the drivers they insure. One of the more important pieces of data is whether the driver is “at fault” in a traffic accident. If you are found the “guilty” party, this justifies loading your premium with an increase. What happened in this US state was the five insurers routinely recorded anyone making a claim as being “at fault”. There was no investigation, no court case with a judge deciding one party was at fault. The insurers simply wanted to justify increasing the premiums so assumed fault from the fact of the claim. Fortunately, the people of Massachusetts are well organized. They had a paper trail for every claim and, when they reported the behavior of the insurers to the State Attorney General, this resulted in fines paid by the companies and a recalculation of all the premiums with a full refund to everyone affected.

Sadly, auto insurance is a bear pit and, if you are going to come within range of the bear, you had better be prepared with full information. It does not matter whether you are on cheap auto insurance, usually the mandatory liability minimum, or a comprehensive/collision policy with all the bells and whistles, document every aspect of your relationship with the insurer and every detail of any claim you make. If anything goes wrong, every state has a Department or Office of Insurance. Make a formal complaint if you think you are losing out. If you learn of others, complain to the State Attorney General. Failure to fight means the companies will trample on your rights.