Auto insurers play hardball in minor-crash claims

[ckramer]

Both Roxanne Martinez of Santa Fe, New Mexico, and Ann Taylor of West Lafayette, Indiana, saw the practice firsthand.

Martinez suffered neck and back injuries when she was sideswiped by a driver insured by Allstate.

After three years, the company finally offered her $15,000 -- a little more than half of what she needed for lost wages and medical bills.

She went to court, and four years after the accident a jury awarded her $167,000 plus interest.

"It's kind of hard when you are thinking they are going to leave you broke. ... That was very stressful," she said.

Taylor was not as fortunate when her case went to trial.

The Indiana nurse was rear-ended by a State Farm employee driving a State Farm car. Damage to her car was minimal but she suffered herniated disc and muscle tears.

Taylor racked up medical bills and lost wages amounting to about $15,000. The company offered her $2,000.

"I was just very insulted," she said.


http://www.cnn.com/2007/US/02/09/insurance.hardball/index.html

[acmavm]

1. AH, State Farm. Paid their premiums for years. Then a wind/rain storm

came up one day and a tree limb feel down and crushed me car. The told me it was an 'act of God'.

I don't know what I did to God that he was mad at me and wrecked my car.

I got nothing.

This was quite a few years ago but the point of my story is that State Farm screws EVERYBODY, their own insureds included.

[AX10]

3. The insurance industry is just a legalized theft operation.

[MindPilot]

2. Yet another reason for universal health care.

I don't get why the insurance companies aren't all over that. They would be on the hook for property damage and maybe a pain & suffering claim, but the actual medical costs--which are the biggest payout for auto claims--would be taken care of quickly, and that would keep the P&S claims down and probably eliminate many of them.