The Insurance Policy Scam
July 1, 2016

How would you feel if you contracted to have your lawn mowed and the landscaping company refused to trim around your home stating that trimming is not included? How would you feel if you agreed with a roofer to have the shingles replaced on your home with 30-year shingles, to find that the roofer replaced them with 20-year shingles, stating that is all that you get! It has become far too common in today’s society that what you think you bought is not what is advertised.

Have You Read Your Auto Policy? Smart consumers read their contracts and agreements before purchasing products to understand what is included with the purchase and what services they are entitled to while using that particular product. However, with the busy lives that are so common in today’s society, the insurance industry gets away with selling their products without the policy being read and understood prior to purchase. The insurance industry expects consumers to skip the vital step of reading the auto policy and pushes their television and radio ads on you to sell the policy. What are some of the phrases American’s have drilled into their heads about insurance companies? Let’s see if these ring a bell:

“Like a Good Neighbor, State Farm is There.”                              “You’re in Good Hands with Allstate.”

All of the insurance companies have their sincerity and money saving propaganda to lure buyers towards their products. But the belief in their sincerity goes too far when you sign and accept the terms of a policy without reading and understanding what you have agreed to. The majority of automobile insurance policies are a scam to take your money and then deny coverage based on their insurance policy’s Limits of Liability. Most customers are not aware of what their Limits of Liability are within their policy or what they are entitled to in the event of a loss.

Where is your Auto Insurance Policy? The majority of vehicle owners have not read their auto policies and have no idea where to locate the document at home. When a problem arises during collision related repairs, we ask to review the customer’s insurance policy. Usually, they return with their auto policy declarations and endorsement pages along with miscellaneous billing documents. We explain they need the actual policy and the customer calls back telling us they have no idea where it is.

Insurance Agent Says What!? When the lost policy situation arises and the customer calls their insurance agent for a copy, most agents do not have copies available to hand to the customer. It sounds outrageous that your insurance agent cannot provide you with a copy of the document you signed – but here lies the scam of the insurance company. They hide your policy because they do not want you to read what you SHOULD have read before buying their product. This includes all the small details about what they will not cover or what parts and services they will pay for versus the manufactured recommended parts and services you should expect to receive. What happened to that sincere relationship in those TV commercials?

How Many Items Do You Purchase Without Taking Possession of The Product? The automobile insurance policy is considered a Contract of Adhesion. This means that the contract is a one-way agreement between you and the company you have contracted with. Perhaps, if you had the opportunity to read your insurance policy before you purchased it, you would be more cautious of the product. The insurance policy is a take-it-or-leave-it arrangement – Please find your automobile insurance policy and read what you purchased. If you have any questions regarding the language within your policy feel free to call us for assistance.