More Things Your Insurance Company will Not Tell You

It is easy to see why average Americans don’t like insurance companies very much. Insurers seem to have a lot to hide when it comes to their dealings with average Americans.

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We at the Samurai have already mentioned a few of the things that auto insurers will not tell you. Well guess what? Insurers have more to hide than we thought. A few more of the things that insurance companies will not tell you include:

  • It can be a lot harder to get an insurance quote than we tell you. Even though some insurers promise that it takes only 15 minutes to get a quote, it takes a lot longer to do that. The geniuses over at NerdWallet put that claim to the test and guess what? They found it would take two hours to compare policies from 10 different auto insurance companies.

 

  • We will try everything in our power to limit your choices. A number of insurers are using strategy called “price optimization” when setting auto insurance rates. Some consumer groups thinks that price optimization drives up rates by limiting choices. Around 45% of large insurance companies use price optimization algorithms, according to USA Today. In price optimization, the algorithms determine the highest premium the insurer can charge you. That means the prices offered directly through insurers’ websites might be a lot higher than those found elsewhere online.


 

  • We won’t tell your state government if you change your policy or coverage. That means you could have your car towed and get ticketed for driving without insurance, even though you’ve been making the payments. Pennsylvania resident Nnamdi Asogwa found this out the hard way when cops towed his car away. He was pulled over because his license plate popped up on a list of motorists driving without insurance. was on the list because his insurer, GEICO, had told the state his coverage had lapsed, but didn’t tell the state it had started again. Pennsylvania state law requires insurers to notify the state when coverage lapses, but not when it is reinstated.

 

  •   We won’t tell your state government if you change your policy or coverage. That means you could have your car towed and get ticketed for driving without insurance, even though you’ve been making the payments. Pennsylvania resident Nnamdi Asogwa found this out the hard way when cops towed his car away. He was pulled over because his license plate popped up on a list of motorists driving without insurance. Asogwa was on the list because his insurer, GEICO, had told the state his coverage had lapsed, but didn’t tell the state it had started again. Pennsylvania state law requires insurers to notify the state when coverage lapses, but not when it is reinstated.

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  • We’re making billions from Obamacare. The nation’s largest health insurance company, UnitedHealth Group, reported that its revenue increased by $10 billion in the last year, largely because of Obamacare. Other big insurers, including Cigna and Aetna, reported similar increases.

 

  • We actually do a very lousy job combating insurance fraud. There’s a reason why insurance fraud has become a big business that has even attracted the attention of the Mafia. It’s far easier to commit auto insurance fraud and get away with it than you might think. Part of the reason for this is that it is cheaper for insurers to simply pay fake claims than to weed out the fraudsters.

 

  • The main reason why your auto insurance premiums are so high has nothing to do with your car or your driving. Instead, the main cause of high auto insurance rates is the high cost of medical treatment for persons injured in accidents. If people had another means of paying for their medical care, such as National Health Insurance, auto insurance premiums would be far lower.

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It is obvious that a little more honesty from insurance companies would be appreciated. Until then, you can find lower cost auto insurance by simply researching it yourself online.