insurance

[madsman@xxxxxxxxxxxxx]

>Date: Thu, 31 Dec 1998 15:43:43 -0500
>From: Mark Alan Selleck <glassimpressions@domain.elided>
>Subject: insurance

>Sure, as Jim stated, one can take care of damage by using one's own
>insurance company.  Then they will go against the other insurance company to
>collect.  
>
>The only problem is: if your deductable is high(mine is $500), and
>the damage is likewise, you are out of pocket that amount.  

>Also, if the damage is high, until your insurance company collects from the other
>insurance company, the damage is charged against you and your policy, and
>can affect your insurance rates until the cost to your insurance company is
>re-paid. 


The statement re the deductable is, obviously, true enough...if you were not at fault, and your 
carrier recovers the cost of repairing your vehicle , then they will "refund" your deductable to 
you.

The other statement, however, is not accurate. The only way an insurance carrier can charge you 
for an accident is if they believe you're at fault, and even then, they cannot just raise your 
rates right away, nor do they ( in my experience, anyway) append a surcharge in contemplation of 
removing same upon successfully concluding  subrogation ( insurance talk for getting the money 
from the other guy). If there's anyone who want to know how this works, e mail me, and I'll be 
happy to explain. Your company should be defending you, unless there's evidence that you were at 
fault...unless, of course, you didn't have collision coverage, in which case you are on your 
own.

When I first entered the insurance industry, the decision to carry collison coverage on a car 
was usually a function of age vs. perceived value...now, with cars retaining more of their 
value, and all of the other issues previously mentioned, it has become a "life-style" issue as 
well...how much is your time and anguish worth, anyway?

One other note...always, always, if possible, get a police report, and notify your carrier. It 
seems that many of the people who drive into the back of our BMW's these days have also 
graduated from the School of Insurance Fraud with a minor in creative accident reporting...if 
you have your version on record early, and the other guy tries to pull a fast one, the company 
will react accordingly, especially since fraud has become such a problem that  many states 
have mandated that carriers form anti fraud units, usually called SIUs  (Special Investigation 
Units ).

regards,

Mike Capaldo

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