Wednesday, September 19, 2012

Car Insurance - government mandated ripoff

So a few days ago I got my insurance renewal in the mail.  The price had gone up 25% for six months.  So I calls my insurance company and they say "Oh, there is a 'not-at-fault-accident on the record and they charge a surcharge for that."

In other words, a few months ago a lady hit my wife's car in a grocery store parking lot ... the lady got a ticket and the lady's insurance paid for our car to be fixed.  Now, OUR insurance goes up 25%.

How is that fair or right?  This is what happens when the government gets involved and makes the purchase of insurance mandatory.  

Consider for a moment what we did before government made insurance mandatory.  I'm guessing the insurance industry was FAR less regulated than today so they would sell you a policy based on what you wanted to cover.  At the time, if you had insurance and got in a wreck, you insurance paid for your car and your injuries (then, if you weren't at fault,  they sued the other guy for their losses.)

All of a sudden the government gets involved.  They start with the demanding and requiring and regulating etc ... and why?  Why was that necessary?

And now government has to approve the prices and profit margins.  What do YOU think that does to prices?  If you think "lower" you're an idiot.

I ask you, did our founding father mandate insurance for their horses/carriages?

Anyway, I tell the lady at the insurance company "Well, you know I'm going to shop around for other insurance."  And she says "Oh, I understand, goodbye."  Not a concern to her, WHAT-so-ever.  Why?  Because the government requires everyone to buy it so when one person leaves, it's like pulling your finger out of a bucket of water to see the hole it leaves. 

Not satisfied with the agent's explanation I call the insurance company itself (GMAC.)  I explain the situation "you mean my wife is sitting still in a parking lot, another person hits her and now MY rates go up?  Who makes that decision? 

Her reply? "That's the way we're filed in your state sir?"

So I said "you mean the government forces you?"

She repeated "That's just the way we're filed in your state sir?"

Bottom line?  That's not understandable to me ... except that they let the insurance lobby write the laws ... and what are the laws?  They can do anything they damn well please.  Lucky for "government regulation," right?"

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