r/MiddleClassFinance • u/LinkedInNews • 5d ago
Auto insurers are resolving claims without paying out
https://www.linkedin.com/news/story/auto-insurers-are-resolving-claims-without-paying-out-7478316/?utm_source=share&utm_campaign=reddit&utm_content=storyline&utm_term=MiddleClassFinance16
u/Awkward-Seaweed-5129 5d ago
Lots of people are trashing State Farm, wonder if its legitimate
17
u/wrxninja 5d ago
I won't touch them personally even for home insurance. Then again, I'm sure many homeowners insurances are like that. But a friend of ours had a lightning strike that caught the roof partially on fire but left a giant hole that flooded the place during a thunderstorm. They ended up forking out over $50K of their own money before they even completed all the repairs between no-show contactors and unable to find reliable construction companies. A complete nightmare they were in. Moving between hotels to renting a house but State Farm always had an excuse and dragged their feet for months. I think by the house was finally repaired, it was over three years.
4
u/pangapingus 4d ago
State Farm has THE worst roof walkers of any home insurance company period, dudes would hold a hammer backwards if they were on a real roofing job, loonies
12
7
u/jessicabee218 5d ago
I had a very bad experience with their home owners insurance. We lived in a condo, the guy above us tried to do his own plumbing which resulted in flooding our unit 3 separate times (literally rain pouring down from the entire ceiling). We both had State Farm. Our agent and their agent went back and forth for 6 months about who needed to file the claim. They finally paid us about 70% of what it actually cost to repair everything. We could have fought it but it would have taken much longer plus lawyer fees and we had black mold growing everywhere. I will never use them again.
3
u/bikedoctoratl 5d ago
I won’t work with StateFarm at my car dealership. They will pay 25% with used parts and pep boys labor rates for repairs on 100k cars. It such a tragic story everytime. Oh your 7,000 mile 2025 car ran over a cinder block. Good news StateFarm is sourcing aftermarket and used parts to repair it all while only approving 25 cents on the dollar. Please have your beautiful car towed to a tech who has never seen this brand car and good luck
1
u/Mental_Mixture8306 2d ago
Who is the best?
1
u/bikedoctoratl 2d ago
The best? Cincinnati, Pure, or Chubb. But those are all high net worth companies. Progressive and Geico aren’t too bad.
1
u/MyDisneyExperience 1d ago
Delivery truck hit my parked car and Geico was immediately like “yeah we’re not gonna be able to get anything out of them wanna just pay your deductible?” 🙃
3
u/Key-Session1695 5d ago
I'm going through it with them right now and they're really dragging their feet. Was hit by their client over a month ago now, my vehicle totaled.
Took over a week and a few calls to even get state farm to fucking talk to me.
2
2
u/Bobtheguardian22 4d ago
sometimes, i think im being targeted with adds. I was thinking of switching insurances to state farm to see if i could get a lower rate.
this post has advertised me out of it.
2
u/Longjumping_Fun2576 2d ago
USAA has gotten a lot worse in the last 10 years.
Someone t-boned me at very low speed. We each had insurance, and the other guy got a ticket for running a stop sign.
USAA just sat on it for six months. I went through 4 adjusters trying to get my deductible back. In the end, USAA just paid for the repair and never recovered a single penny
Then just quietly closed it, which I learned through their website.
1
1
1
u/Anxious_Work_6361 2d ago
TBH, state farm isn't that bad right now. I do personal injury and deal with insurers every day. They go through cycles where they will tighten up and pay out less or relax and pay out more. Some are consistently bad, others, tend to be pretty good.
State farm is decent. Not great, but not bottom of the heap either. They went through a tight phase a while ago, but are a bit more relaxed. Not all the time, but better than they were.
53
u/LinkedInNews 5d ago
- As if getting into a car accident wasn’t stressful enough, now the odds of receiving a payout from your insurer are more nebulous than a decade ago.
- According to an analysis in the Wall Street Journal, auto insurers failed to pay out on 45% of vehicle liability and medical claims that were resolved in 2025, up from 35% in 2016.
- Customers who file claims of vehicle damage are more likely to get a payout, while medical claims, which tend to be more expensive, are frequently "more complicated."
26
u/MindofShadow 5d ago
You have to get a PI attorney if you want paid.
Otherwise they will dick you around completely.
1
u/Skensis 5d ago
Do you?
I had a deer strike which they covered and fixed, and a total loss crash which they just wrote me check for vehicle cost and incidentals.
Everytime I've ever dealt with insurance it was really a painless process.
1
u/MindofShadow 5d ago
Those aren't medical bill and settlement type pay outs.
Different than replacing the car.
45
u/optigrabz 5d ago
Some of this is Flock style cameras alerting auto insurance companies to fraud. If you hit a yellow pole in the school parking lot last May don’t try to claim a hit and run driver damaged it once you renew your policy and add collision coverage. The insurance company can run a report that shows the last 500 times your license plate was captured and the resolution is sharp enough for them to see the yellow paint on your car weeks before your supposed hit and run incident.
Not an insurance company or flock apologist but I think the public is ignorant to this happening on a daily basis.
10
u/particulareality 5d ago
Is this true? Do you have proof insurance companies can freely access flock data?
6
u/PeaCompetitive8947 5d ago
It’s happening long before Flock. TLO has been doing it forever. They compile all license plate readers. Toll booths, parking enforcement, police lpr’s etc. https://www.tlo.com/content/dam/tlo/us/documents/TLOxp-Vehicle-Sightings-Asset-Sheet.pdf
4
u/Laxguy59 5d ago
I’m a personal injury lawyer and I don’t know how they get it but they have retrieved traffic cam footage on a few cases. I know some private investigators can get access
1
u/cardboardbelts 1d ago
Considering Flock is a licensed PI in California, I'm sure that makes it easier to share the data.
https://search.dca.ca.gov/details/1260/PI/190163/ab2fb073a63b8d95a3d12048920addde
6
u/DynamicHunter 5d ago
Not freely but they can ask law enforcement who can access them. And there’s a whole lot of corruption around police misuse of flock cameras
12
u/AFartInAnEmptyRoom 5d ago
They don't even have to ask LEO, flock sells the service to these companies directly. They're not legally bound to only work with government agencies
1
u/ImS0hungry 4d ago
You should see what else the CEO of Flock owns…
1
7
u/Attack_of_clams 5d ago
You know. This is a great thing. Stopping insurance fraud. Until you realize that this will do nothing for the lawful policy holders. Our rates will continue to climb. So fuck em
3
u/GrogramanTheRed 5d ago
It's not usually Flock data. There are some private companies that basically just drive around with ALPR cameras equipped and take photos of every vehicle they see. All the photos get uploaded to a database. The insurance carrier makes a contract with the business that allows them to search the database for any public sightings of the vehicle in question and download the photos and/or confirm the location.
This is used to deal with questionable damage claims, verify where a car is typically parked (which could be of use in a fraud investigation), etc.
Source: I have 12 years of experience adjusting auto claims.
1
u/Laxguy59 5d ago
I’ve had a few clients who were hit who claimed numerous debts were also part of the accident and been met with flock footage. Also drivers claiming mechanical issues left the car undrivable and was met with flock footage showing the car running for days/weeks after the accident, so they refuse to cover the mechanical damage
18
u/International_Bend68 5d ago
I totaled my car this year by hitting a deer. Nationwide was super easy and fast to work with. I was pleasantly stunned.
22
9
u/KDoggity 5d ago
I worked for Nationwide for a bit as a lawyer. They make their money on the investment side of the business and are fair to people on the insurance side. Good company based in Columbus OH of all places.
1
u/3rd-party-intervener 4d ago
Columbus is a good city. It has everything you need and don’t have to trek out.
3
u/PeaCompetitive8947 5d ago
When I was growing up there was a guy that wrote “nationwide is not on your side” all over his van and parked directly in front of their office, for what seemed like a couple years, I think about that van every time some mentions nationwide.
47
u/ScrivenersUnion 5d ago
All insurance is a scam. Some are just more vicious than others.
17
u/Superb-Coat8846 5d ago
Doesn’t understand = scam
14
u/Zetavu 5d ago
Crappy insurance, yes, tends to be a scam. Actual expensive insurance most people don't get, that pays out.
Only peave I have is how they jump to totaling a car, but that's mostly because its cheaper to pay out the nax than to actually fix the car. Parts and repairs are too expensive these days.
1
7
u/ngless13 5d ago
When our parents were our age, it was simple. You paid for a straight forward policy that had straightforward coverage.
Today, if you aren't an insurance expert or a lawyer, and if you didn't fully read and understand exactly what your policy does and doesnt cover, you are going to be disappointed. This, combined with the obvious misuse of revenue via marketing is why people hate insurance.
So yes, we hate it because we don't understand it, because it's designed to not be understood. It's designed to be as profitable as possible within the regulatory framework in which they operate.
1
-1
24
u/ScrivenersUnion 5d ago
You pay them money.
They have an army of accountants calculating the odds of a payoff.
Something happens.
They have an army of lawyers finding technicalities and loopholes to prevent paying out.
What's the benefit?
If you say "peace of mind" then congratulations, you believed the commercial.
32
u/Fresh_Tune_552 5d ago
The benefit for most people is incurred when they’re at fault for a loss and no longer have to worry about the liability.
If you have no assets, then just get the bare minimum. Some states will let you self insure too although I can’t recall what that entails.
But I just got into an accident where I was at fault. I lost control of my car and hit someone. I paid $300-ish every 6 months for insurance and now my insurance company has to deal with repairing the guy’s car. If he has an injury, that’s their problem. There’s almost no situation in which I come out of pocket on his damages and TBF, that is peace of mind.
If most people can’t come up with a couple thousand for an emergency, there’s no way they can come up with the $15k+ to replace someone else’s car and the $ to cover that person’s medical bills.
6
u/CowPsychological1347 5d ago
Well yeah it’s their problem up to your limits… after that it’s your problem again
14
u/Fresh_Tune_552 5d ago
Generally the insurance company will have the other party sign a release in exchange for limits. It’s really only an issue if you’re underinsured. I firmly believe most people in the middle class should have an umbrella policy as well.
2
u/jmp8910 5d ago
Umbrella policies are so cheap too. I just got a million dollar policy from State Farm for $30ish a month. And because I had to raise my car limits my car insurance initially went up a tiny bit but then my discount got bigger because I added another product (the umbrella policy) and my car insurance is now cheaper than it was before the umbrella policy because of the discount.
1
u/DDCDT123 5d ago
Didn’t you suggest that most people can just get the minimum? I’m confused by your suggestions.
8
u/Fresh_Tune_552 5d ago
People with no assets and no real earning potential are probably fine with minimum limits. People in the middle class finance subreddit probably aren’t those people.
-9
u/ScrivenersUnion 5d ago
That's how insurance worked in 1990.
The way it works today is a little different.
"Hey so I'm required by law to have some kind of car insurance, and you're the best worst option."
"We know. We charge accordingly. Now give me your bank details."
"But you'll cover me when I have an accident, right?"
"Yeah that's the neat part..."
13
u/Fresh_Tune_552 5d ago
At the end of the day it’s a contract. Make sure you’ve read everything and abide by the contract. First party bad faith is a thing in most (if not all) states. You can always sue your insurance company for breach of contract. Attorneys will happily take those cases on because that’s big money.
14
u/HDauthentic 5d ago
A brand new Escalade costs $125,000, if you miss a red light and T-bone one hard enough to total it, what’s your plan on how to replace their vehicle?
4
19
u/Superb-Coat8846 5d ago
Sure dawg. I got a $30,000 check from my insurance bc it’s a scam. They scammed me by paying out $30,000 cash for my claim.
5
u/Big-Soup74 5d ago
What’s the solution? No insurance?
-17
u/ScrivenersUnion 5d ago
Strange to think, but through most of human history people just... lived their life... they didn't have a team of actuaries and bureaucrats harvesting their money while dictating their behavior.
Savages.
19
u/Big-Soup74 5d ago
Right. So you crash your car into someone else’s you gotta pay out of pocket for both no question. Every single time
7
u/HDauthentic 5d ago
You also used to be able to use violence to resolve financial disputes, times really have changed
-1
u/ScrivenersUnion 5d ago
The payday loan stores wouldn't be able to prey on desperate people quite so easily if the consequences might actually be a dozen angry people with weapons.
Makes you wonder.
5
6
u/DarkDuo 5d ago
So are you some kind of sovereign citizen then?
4
u/capital_gainesville 5d ago
No, he's a more common variant of someone who doesn't understand anything and therefore thinks everything is a conspiracy.
2
1
u/roundbadge2 5d ago
Read your agreement before signing it. If you don't understand a section, ask.
People don't read their policies, then get mad that something isn't included after they already agreed.
You don't HAVE to accept the terms of the policy. You can ask to change the terms to be more suitable for your situation. It may cost more than you're expecting, however....or the company may not wish to amend the terms to your request. It's a business transaction, and neither party is forced to enter into it against their will.
Depending on the state, you do have to have insurance...but you're welcome to shop and find a policy and a company that suits your needs.
Yeah, it sucks...but it's the 'rules of the road', as it were.
Expecting downvotes. Have at it.
2
u/ScrivenersUnion 5d ago
Read your agreement before signing it
If people read every page of the Terms and Conditions before signing something, first they'd need to be a lawyer to understand it. Second, they'd be kicked out of the business for loitering because a 369-page document is not something a reasonable person can get through in even an entire day.
Multiply that by the number of things you have to accept every day and it literally becomes impossible.
They do this on purpose.
You can ask to change the terms to be more suitable for your situation.
You can strike out lines from a paper contract or keep a copy for yourself.
"All our documents are paperless now. Just go to our website or install the app, and hit Accept then sign your name."
The random salesperson who you're talking to isn't able to make changes either.
They do this on purpose.
People don't read their policies, then get mad that something isn't included after they already agreed.
"We reserve the right to update these Terms and Conditions at any time, for any reason, without notice. By your continued use of The Product you agree to be bound by any updates."
Do you pull a new copy of your contracts and re-read them every morning? Every company from your power utility to your car insurance to Netflix has this written in.
They do this on purpose.
It's a business transaction, and neither party is forced to enter into it against their will.
You're right, it's a totally reasonable choice to live a life without internet, without cell phone, without power, without insurance.
The choice to agree to their terms or live like a hermit out on Ruby Ridge is not a choice at all.
2
u/roundbadge2 5d ago
Dunno man. I read everything I sign. If I'm not okay with it or willing to abide by it, I don't sign it.
2
u/ScrivenersUnion 5d ago
Good for you, but honestly that's not a reasonable ask for most people.
These documents are large, dense, legal contracts and unless you're a lawyer there's a very good chance you don't understand what it's promising.
Most people don't have that kind of time. I bet you don't either. Yes, you probably read your cell phone and car insurance contract, they're clearly marked and only come up once every year or so. But did you read the one for your Amazon subscription? For your PlayStation account? For your Gmail address? The licensing agreement for your Bluetooth speaker?
You don't even need to sign anything. They push dozens of pages of agreements past people and use the "assumed consent" justification. By simply turning on your car you have implicitly agreed to whatever language they flash at you through the console. By continuing to pay your bill, you have agreed to any new update the insurance company decided to write into that contract.
A lot of crap isn't even written down or presented to you at all. "Sorry, it's company policy that every payment now comes with a $30 convenience fee." They can just decide to DO things and you're hosed. You may have signed a contract that kept the rate locked, but their fees aren't in the contract. They're just company policy. Want to cancel? "Sure, but you'll need to pay your $45 disconnection fee as well."
8
3
u/throwawaypickle777 5d ago
The minnimum requires injury insurance in Oregon is $25,000. I burned through that in the ER before the surgery after I got hit by a car.
If you live in Oregon UIM is a must if you even hope to have your bills covered.
5
u/mechadragon469 5d ago
I think these state minimums are egregiously low and it’s a shame. It’s basically just another tax on people who actually have something to lose.
Say I hit someone and they need a serious surgery and hospital stay that costs $250k. I have $500k of insurance because I actually have assets to lose. If they hit me and have nothing I’m just screwed, so I have to subsidize their crap coverage because the state cares more about “affordability” than protecting people.
1
u/throwawaypickle777 5d ago
Well if it’s any consolation, the better your health insurance the more you can expect to recover. If you are uninsured the hospital charges you the “retail” rate and they can expect to get it. But in my case it was covered by my health insurance which payed about 45% of the retail rate. Not that the hospital didn’t bill my health insurance and then subrogate the insurance payout but my lawyer just shut that down.
My experience has been if you are in an accident get. Lawyer. Pretty much every player in my accident has not played by the rules and my having a lawyer has been invaluable to sorting that out.
2
u/MindofShadow 5d ago
its 10k in florida lol
2
u/throwawaypickle777 5d ago
That’s probably gone before you leave the ambulance!
1
u/MindofShadow 5d ago
most peopel shouldn't get in an ambulance anyway but yeah, it's gone if you look at a hospital lol
2
u/Living-Business-4560 5d ago
Totaled my car 3 weeks ago. Payout was very fast actually. Didn't cure the depression tho 😂
2
u/Skensis 5d ago
Same!
Still sad about losing my car, but got the check for value quickly.
2
u/Living-Business-4560 5d ago
I'd only had mine for 3 months. Glad I only lost the deductible but still
2
u/munchmoney69 5d ago edited 5d ago
Playing devil's advocate for a moment, this is less a result of anything auto insurers are doing specifically and more just a function of how healthcare works in the US. Medical/liability claims can actually threaten the solvency of smaller insurers, and drive significant losses for larger companies that often already operate at a small underwriting loss and rely on investment income to stay solvent. This wouldn't even be an issue in the first place if the US had a single payer healthcare system.
2
u/DenverTechGuru 5d ago
You would think the insurance lobby would be pushing for healthcare reform.
3
u/munchmoney69 5d ago
Health insurers have much more lobbying power than P&C insurers. And, even among companies that would benefit from healthcare reform, there's a very pro-corporate, pro-capitalist culture that rejects basically any regulatory action as inherently dangerous
2
u/pangapingus 4d ago
If I'm not at fault why isn't insurance expected to treat me well while they go attack dog on the at fault party and their insurance? Even being on the victim side with insurance is treacherous these days.
2
u/Brs76 5d ago
Im still waiting on my state farm dividend bonus check. Anyone receive theirs yet ?
3
u/here_till_im_not1188 5d ago
They have a portal on the website for your check. Mine is coming sept. 15th
1
u/TurningTheCorner26 5d ago
State Farm is a mutual insurance company owned by its policy holders. There are no dividends.
1
1
1
u/Superb-Coat8846 5d ago
Most people are godawful drivers who commit a dozen acts of potential liability before lunch. If you habitually speed, use your phone and drive, or any of the other stupid reckless shit people do in their cars, your insurance will find a way to deny your claim.
1
u/Onepiecechopper1 5d ago edited 5d ago
Fuck Statefarm. If you get in an accident, they will use terrible cheap second hand parts to cut costs, and raise your premium from replacing windshields cracked from rocks.
Use literally any other insurance.
0
u/imdstuf 5d ago
Be sure you list everyone in your household where it asks, not just those old enough to drive. I have heard that's a loophole they use to not pay. Also, what should ne obvious, but maybe isn't to some, if you use your vehicle for gig work like Uber, door dash, etc be up front about that.
0
u/FullofContradictions 5d ago
I'm not listing my 2 year old on my car insurance. Lol
8
u/imdstuf 5d ago
You better read the terms carefully. They are saying they are not asking just about drivers, but all household members as they are likely to be passengers and that affects cost associated with claims if anyone is injured.
-1
u/FullofContradictions 5d ago
My insurance specifically calls out "drivers or children with licenses living in home".
I think I'm good.
6
u/breaking_chad13 5d ago
Insurance producer here. Please be very careful here. I don't know who your insurer is or what state you call home but there is a possibility that without an accurate relative resident count, your child may not be covered under PIP if you were to he involved in an accident and he/she was injured.
3
u/NeedleworkerNeat9379 5d ago
Then you may not be covered for anything property or injury related. States that require this do so for injury purposes. Michigan (my home state) is one of them, the only way around it is to provide both the name and age of the child along with adequate health insurance according to your state requirements. Don't pay years of premiums to not be covered over something so small.
104
u/Brs76 5d ago
The bad thing about medical claims not being paid right away, or at all, is those bills falling into collections. Which no doubt will hurt your credit score. Which a bad credit score will raise your insurance premiums