Auto/Car Insurance - Institutionalized Scam

Insurance is a great concept.

Everyone chips in to provide a big enough pool of cash reserve to take care of the unfortunate few that suffer losses. Most of us have had to make a car accident claim at some point - it sure takes the sting off the pain of the moment. One must be sure to insure with quality companies that will be there for you in your time of need.

With car insurance regulated by governing bodies, there shouldn't be much room for ripoffs. Some regions even have government only auto insurance plans - we should be safe right? My experience shows not.

Insurance companies set their rates based on market values for vehicles, or at least their version of current prices. I drive old classic cars - some are works in progress. It's hard to place a value on rarity - book value for most 50s, 60s or 70s cars is laughably low. Figuring I'd be insulted with settlement offers far below the replacement cost of my cars, I've always declined collision insurance premiums. Over years of my safe driving I can save enough money to pay for my mishaps as I go. This strategy worked nicely until a few years ago.

Once, I made a mistake. Ran a red light - no visible damage to the bus that barely bumped me.
The regional government insurance agency also owned the transit company - another mistake. In 6 or 8 months I got a notice from the insurance company that they had settled with the bus company. I couldn't believe what I read. The bus somehow acquired $2000 damage, though both drivers inspected the moment and saw nothing. There was a picture of the damage but it was on the wrong side of the bus.

The bus driver apparently was more shaken up than he let on. He somehow needed 3 weeks off work for pain and trauma, as well as multiple trips to the back doctor. It was a done deal. I was not happy to be on the end of such a blatant scam. I proceeded through the appeal process, hell bent on exposing the fraud. They had a ready made wall committee ready to fend off any claims the contrary. After countless, fruitless hours I gave up. My insurance went up, naturally.

Not long after, driving another old car on a 6 lane street - the light ahead turn red. I was in the middle lane with no one near, pulling into the empty left lane. As I did I could see a Dodge Neon a full block behind - but coming at 60+ miles an hour. He was surprised by the light car and slammed on the brakes. He skidded a full half block into the back end of my car and ended up ahead and to the side of me. My big sedan received a broken tail light and scraped bumper. No worries for me, I thought - rear-enders are always the rear car's fault. Right?

Then I get the call - I'm at fault in the accident. The small text on the rulebook says if the driver ahead turns into the lane of oncoming traffic it's your fault. Because I left the scene without getting any witnesses it was his word against mine. Ripped off again.

Another car, 'nother day. Turning left, the light turns yellow - 5 lanes of cars ride the yellow, then the red. When all was clear, we began the long journey across said 5 lanes on the turn. Ever vigilant I see a BMW screaming towards me in the far lane - no intention of stopping. Only problem? My big boat is in the right of way and people are already in the crosswalk. I had plenty of time to tell my passengers to hang on - we're going to get hit. Without screeching his brakes he slams into my back wheel. The young whip driver (whose foreign name I couldn't spell let alone speak) shmucked his daddy's 7 day old Series 7.

No problem - I have 2 witnesses in the car. I got the name of a witness at a corner business. A whole month later I get a call from Jill at State Farm Insurance - tell her the details. Another month passes, then another. I figure Jill is a real loser - quite disorganized. Eventually she calls my witnesses more than 90 days after the accident. After all this time, apparently my passengers (from out of state - not familiar with the intersection) and the bystander gave slightly different views of which lanes we were all in. Naturally the speeding idiot said the light was green - as if I could make a green light turn there in rush hour.

State Farm blamed the accident on me - with success. Without collision on my Allstate policy, I was on my own - they declined to help or intervene. Interestingly, State Farm never asked me to pay for the damage to the BMW. If I was really at fault you'd think they might have pursued this further. I'm out $2000 for repair and my beautiful classic is forever saddled with bondo - no such thing as replacement metal for a rare car.

In 3 crashes I get ripped off 3 times. I'm either too honest or too naive. What might I learn from this?

Accident 1 - lie to save my company repair costs and time off work
Accident 2 - lie to get free car repairs and save increased insurance premiums
Accident 3 - ignore the truth until no one remember it any more

What did I really learn from this?

Keep a disposable camera in the car
In case of an accident take pictures of everything as soon as you can - the placement of the cars before moving, the cars sitting there waiting and watching (license plates are handy), and any other conditions of the incident. Some day on-board video cameras will be the norm. It will be hard to hide the lies with proof.

Find Witnesses
Immediately ask any other car drivers in range if they saw what happened - get names, phone numbers and license plate numbers. Look for gawkers - everyone loves an accident (if not involved). Call them later to review the details of the accident - make sure they have the story straight. Write down the details and draw a map of the accident - give a copy to your witnesses so they can describe the incident properly when interviewed.

Insist on immediate witness interviews
After months go by, people are bound to forget some of the details.

Buy collision insurance
Unless you can afford the possibility of suffering fraud or incompetence, you might well need the backing of your company's lawyers on your behalf. When their money is at stake they work harder. Insurance companies don't like to rip each other off - they have no problem bullying you as a helpless individual.

Don't buy insurance from STATE FARM
If you see the name STATE FARM on the opposing driver's documents, beware. They know how to play the scam game - you are in for one. There's probably a scammer school for insurance adjusters. Jill did a perfectly incompetent job to save the company from paying a small claim that would be obvious liability to any other observer. She saved a first time idiot driver from paying for his stupidly - he go on to do more damage without the lesson learned.

Spread the word. I need to get my money's worth of bad publicity out of STATE FARM's institutionalized scam policy.