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Originally Posted by K C Muffin  It's happening everywhere - Kansas City, both KS and MO, Wichita, Topeka, St. Louis.....insurance companies are going to have to start taking action - they're on the hook for damages they wouldn't ordinarily have to pay. Us citizens don't have a loud-enough voice. The lawmakers think they know better. As soon as insurance companies have had enough, they'll use their loud voice and dollar power to get something done. Unfortunately, in the meantime, it's me and you that have to pay the increased premiums. |
This seems exactly backwards to me. Insurance companies aren't paying out more, policyholders are. It's in the Insurance companies' interest to drag their feet. If it weren't, you'd better believe something would already have ben done about it.
Sure, Company A might have to pay out on a claim that company B might normally pay if its driver were at fault, but, as an industry, Company A pays out the damage minus the deductible (shifting the burden to policyholders). If company B's driver is at fault, the policy holder (on either side) doesn't pay the deductible. Plus Company A can railroad the driver of the insured's car to haggle about how much should be paid out (saving more). As an industry, Company A + B stand to make more the way it is. Ths is not including, of course, the millions of people that just have liability coverage.