5 Things Your Insurance Company Does NOT Want You to Know
1. You pay top dollar for insurance but get CHEATED in the process.
What does it mean for a body shop to be selected as a “preferred shop” by the insurance company? What is the significance of this “preferred shop”? Are they better?
No, for a repair facility to become the “preferred shop” concessions may be granted to the insurance company.
How does this affect you?
Your vehicle could be repaired with cheaper, lower quality parts.
2. The Insurance company will NEVER tell you about the insurance commissioner
Who is the insurance commissioner?
The insurance commissioner is an official appointed by the governor of the state as a consumer advocate.
What does the insurance commissioner do?
- The insurance commissioner provides a FREE service to you, courtesy of your tax dollars.
- The insurance commissioner has the power to revoke the license of the entire insurance company if necessary.
If you have any complaint about your insurance company (ex: taking longer than reasonable to examine your vehicle, steering [possibly illegal], etc.) then call your state's insurance commissioner
Link to the Alabama insurance commissioner:
Insurance Commissioner: 334-269-3550
What is steering?
3. You Have the Right to Choose
Where you choose to take your car for repairs is entirely up to you. However, your insurance company may suggest otherwise. Instilling a slight sense of fear in the insured or a feeling of inability to control the situation, the insurance company can persuade their clients to go to their “preferred shop”. Sometimes saying “NO!” to the insurance carrier, the insured might sense harassment.
Examples of Threats:
We may not warranty the work if your vehicle is not repaired by one of our “preferred shops”.
We may not pay for any repairs done by a facility that is not one of our “preferred shops”.
We may have to raise your rates
Your contract may be subject to change
These are mere intimidation tactics to steer you towards their “preferred shop”.
Are you afraid? Feel like these threats are real? When in doubt call the insurance commissioner. He or she can tell you what the insurance company can and cannot do
4. Insurance carriers may persuade politicians & lawmakers to bend to their will
Insurance companies have been found guilty of funneling money to government officials in order to keep them in their debt. This is why it becomes so difficult for the little guy to win against the insurance company in court.
Below is a link to an actual court case:
State Farm was found guilty of funneling money to the campaign of an Illinois Supreme Court candidate.
5. The pocket estimating apps actually save the insurance company lots of money but could potentially cost you thousands of dollars and even place your life at risk
What is the pocket estimating app?
The pocket estimating app is a smartphone app that insurance companies encourage their clients to use. The app works by taking a picture of the damaged vehicle to send to your insurance company. This information is used to write an estimate of the damage and a check covering the damages is sent to the insured.
Pros: It's fast, simple, and gets the claims process started. It is faster instead of waiting on an adjuster. It is really good because 95% of the wrecks need to be brought into a collision shop to be disassembled. This is needed to assess all hidden damage. This saves time and is an efficient process for getting the initial estimate. The initial estimate is what a repair shop needs to get started.
Pay attention to your vehicle's warning signs. At any time, you feel unsafe stop driving and call a tow truck.
Cons: A picture cannot simply capture all the damages that lie underneath. Relying on this information could cost you thousands of dollars in repairs due to an inaccurate estimate.