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Auto Insurance Complaints
Complaint 4 of 5 in "Fraud Issues"
Insurance Carrier: Progressive Marathon
Progressive, my auto insurance co., was charging me $1400 a yr for coverage on a 2005 Equinox. I found out that it did not include collision. I missed one month's payment and reinstated my policy with collision coverage. At this point they asked for $6000 a year. I agreed and began to shop for other insurance. In the meantime I totaled my car, and they are questioning the validaty of the day and time of the accident. I was working with a Progressive agent who made me an offer which was compariable to nada, not kelly blue book. The difference is $4000 dollars. We set up a day and time to come in, and then the agent calls me back and say she needs to call my boss. She needs phone records, tow truck receipts. I told her i have a police report, and would that do. First she said yes, then she said.... your claim might be denied if I don't get the other stuff. I told her you didn't have a problem when you were taking my money, and i'm not sending anything else.
Insurance Expert Answer:
What you are doing is increasing the likelihood that what was originally a possible suspicion by the insurance company will become a claim denied and police report of insurance fraud. First, failure to cooperate with the insurance company is a basis for denial of the claim. I am not saying that everything a carrier asks for always must be done, but reasonable cooperation is essential. Second, this sounds suspicious on its face. When people lapse their old basic coverage and then buy a far more expensive new policy -- with a premium increase as great as the one you said for collision, and then say they have a major collision claim, bells and whistles go off. A NEW Ford Equinox sells from $20-27k. The cost of the collision add on was $4,600 using your numbers -- or at least 20% of the used value of the car. People would not normally pay anything that high in normal circumstances. Finally, turning off all cooperation is suspicious. They can get the data they need without your help in most circumstances. What you seem to be telling them is pay me or else. If you are guilty, see a lawyer now. But instead of an insurance lawyer, see a criminal defense lawyer. If you're totally innocent, see an insurance lawyer.