Why do we allow insurance companies to rip us off so?

[madokie]

We pay out the ass for it and often times they don't deliver. Has there been any talk about getting control of this big drain on our finances? Shouldn't we be demanding that something be done or am I just ah worry wartin'it this morning?

[kirby]

1. Actually...

On Oct 28, Paulson expanded the bailout to include insurance companies. So I would say not only has there been no talk, but you are paying more via taxpayer bailout dollars. Good morning!

[sinkingfeeling]

2. Insurance companies will do everything they can to avoid 'paying out' claims. This includes all

forms of insurance. I had to get a lawyer and file a lawsuit against the holders of my title insurance after a title company screwed up and cost me money. They then 'settled' before going to court.

[madokie]

4. I would bet that you weren't reimbursed for all the extra cost to you either

lawyers aren't cheap. Thats another crew that needs a good looking at if you ask me.

[kentuck]

3. And because they bribe the politicians...

they get a free ride to do whatever they want.

[nykym]

5. I ONCE ASKED AN AGENT

Who was trying to sell me a whole life policy.
What do I get out of it!
He stared at me for a few minutes not knowing what to say, finally he said "Peace of Mind" to which I replied once I am dead everything will be peaceful.
(please no religious meanderings, I don't know of anyone who has come back and said it's horrible!)

[madokie]

6. Insurance companies are a big drain on our economy

I don't even want to think about the money we've spent on insurance because it would only add to my angst.

[RB TexLa]

12. You are joking right? You honestly don't know any reasons for one to purchase life insurance?

[sendero]

7. Anecdote Nationwide vs State Farm..

.... recently, I moved my college-aged son from my ex-wife's auto policy to mine. My policy is in my name only, covering my car and a pickup. I had called Nationwide to compare the premium my ex was paying to what I would be, it was better, so I made the move.

A couple of weeks later my wife gets a notice that she owes about $150 on her 6 month auto policy. Why? Because we are both named on our homeowners policy and I guess their attitude was that my son might drive my wife's car (something that was not going to happen BTW). We protested and the agent said the underwriter was adamant about it.

I had been with Nationwide since 1985. I'd had no real complaint with their service before. But this annoyed me enough that I sought quotes from another company by filling out a web form. That company turned out to be State Farm.

Here's where my stomach churns - for coverage that was actually better than what we had under Nationwide, State Farm's annual premiums (for 3 cars and a house) were $1800 (about 30%) less! I could not believe it. I felt like Nationwide had been ripping me, a loyal and good customer with NO auto claims for 20+ year, off and good.

When I called Nationwide to cancel, they asked "is it about the premium, because we can work on that". I said it damn sure was about the premium and the time I would be interested in working on it had long past.

Summary, get quotes every 2-3 years. There is apparently no price competition in this business.

[patriotvoice]

11. My experience is the opposite, but the recommendation is heartily endorsed.

I seek quotations every 2 years from all the major players for home & auto, no claims -- ever. Nationwide has been consistently less than everyone else. YMMV, so shop around!

[sendero]

14. You know...

.... I'm pretty sure Nationwide was competitive when we first signed up.

I get the feeling that these guys just quote low to get the biz, and then jack up your premiums over time.

So yes, the answer is to check every few years and be sure you are getting a fair deal.

[burythehatchet]

8. Its not just insurance companies. You (me) are being screwed 24/7 by wireless companies

cable companies, credit companies, and many others. The entire foundation of the "service economy" is deception, theft and the ultimate "gotcha" moments. When our economy was based on tangible products that you could touch and hold you could reasonably keep yourself from getting screwed, but now you are buying bits and bytes, radio freq transmissions, digital streams and you have no idea whether you are getting what you pay for. NONE.

Don't you notice how surprise fees and penalties and surcharges and assessments pop up in relation to services where you have no idea whether it is legitimate or not. Guess what! It's never legitimate.

Until the special interest group known as Consumers are represented, the cancer that I described above will continue to infest this country. There is no economically viable path to a bright future under this scenario. We all need to stop feeling like every commercial relationship into which we enter is another unlubricated bareback fucking.

[Greyhound]

9. Banking and insurance are basically the same people, they own each other. n/t

[madokie]

10. They're damn sure in cahoots

Add them to the list

[HelenWheels]

13. Retired insurance execs

I live in an area that is home base to several large insurance companies. The execs retire with a bundle and I don't understand what they do to earn it. A retired exec just died and his obit listed a home in Florida and a summer home in this state. Every one of the exec's obits list the same thing and more. Is this what our insurance premiums pay for?