“The System” is stacked

* Reflecting on some older posts in an effort to stir my brain back up and see where my thoughts have gone over the last 8 years*

Today it is off this one, A Day in Court; https://theinsurancebill.com/?p=184

The overall financial system we are in is fascinating.  Tough to say that the good the insurance piece of this system is helping or hurting more.  Yes, it allows entrepreneurship to flourish.  Yes, it is the underlying fabric of the entire financial system.  But, on the other hand, we do a lot of work in the personal insurance and micro-commercial space(think 1-5 employees 6 but rarely 7 figure sales).  This is where you see the dysfunction shine.

Take my court example and let us tie it into my two recent accidents( check Linkedin.com/in/billvanjura for a dozen or so posts starting 8/11/18).

On both August 11 and September 1, I was hit by 19-year-old male drivers.  One drives a car listed on his parent’s insurance.  The other has his own plan.  Both accidents were not my fault. Now the But and a few lesser known facts;

  • Yes, both are not my fault.  BUT, there was police involvement so both will “show up” on my record.  It is left to the carriers to interpret how this can impact my rates.  Sideswiped and rear-ended and soon to likely be screwed.
  • BUT, the second driver only had the minimum $10,000 in property damage.  We’ll get to a whole post on this but for now, know that this forces me to use my insurance.  For as much as I know this has been a harsh learning experience for me. Most consumers will not have an agents experience or knowledge(another reason to have one).  Even with that, I’ve seen a few things from MY company that are disgusting.  So not only will The System “get me” later, my supposed partner will attempt to get me now.
  • The first driver, on the parent’s plan, is smart to leverage this and improve his rates.  Otherwise, he’d likely work for 2-3 months at his part-time job while going to college just to afford insurance.  But, now he’ll see elevated rates for up to 5 years;
    • This is worse if he has other infractions
    • He should start working on his credit immediately
    • Funny, but if he gets married it will help
    • Hopefully, their agent knows how to really help…and is willing
  • The second driver was already not taken care of and my insurance policy will take care of things.
  • BIG ***Asterisk; if you are a massive national insurance brand and you are still selling on price.  And/or your people are afraid to offer more coverage even if it is a grande Starbucks a month in the price difference….you have some way bigger issues
  • He should also immediately start working on his credit
  • I’d wager quite a bit we will become his agent and he’ll spend less and get more
  • If his agent(company) is not laying out a plan or willing to help with one, he’s as bad off as the folks pleading down tickets

Enlightened Self Interest is a concept I embrace.  Essentially, helping others helps you.  This is a complete uphill battle and really creates a lot of conflicts for me.

The sooner the overall system improves/is fixed/ changes the better.  It’ll never be perfect but with regulators and carriers not working together with the consumers best interest as their first priority, it will take even longer to get to a better system.