by Brad Nelson 11/13/17
There’s a reason I’m not a Democrat. People makes mistakes. And very often, those mistakes can be corrected. The world should not generally be completely re-ordered because something bad happened to one person, one time. No amount of laws and bureaucracy can ever keep one bad thing from happening to one person.
But the insurance companies in this country can go to hell. Straight to hell, do not pass go. And, yes, I realize much of the problem isn’t lack of oversight but because of government collusion with the insurance market. This is the real reason your health care insurance keeps going up. But government does have a function in regards to preventing or rectifying fraud.
However, government is now part of the fraud with the insurance companies, as we see increasingly regarding health insurance. They are together along this duplicitious ride. My friend, Pat, has always been suspicious of the entire idea of insurance while I’ve been an apologist, at least for the general concept of it, of spreading the risk.
No more. Burn it all to the ground. Build a wall. Lock her up. And torch the insurance industry as we know it and start all over.
I received an email regarding the renewal of my car insurance. The rate went up 31%. And I’m going to try to make a long story short. My rates went up for two reasons:
1) Insurance fraud
2) Likely insurance fraud
Part of the rate increase was because the insurance company (PEMCO) had decided to change one of their formulas. Instead of (I think) the formula being the driving distance of round-trip to work, they went with a flat per-year mileage total. And what they did was start out with a default mileage total that was at least two times higher than my actual yearly mileage. I was able to rectify this via my local insurance representative. But I still consider that fraud by the insurance company itself. It did not first ask me what my yearly mileage was. It just wrote in a number, safe in the assumption that most people are not going to take the time to fight these bastards.
The second part of the 31% rate increase I put down to “likely insurance fraud.” I was told by my local agent (who’s a good enough guy) that my credit rating had fallen significantly. But I told him I own no one money (other than the small credit card debt which is paid in full monthly). He said however that Equifax, which most of these bastard insurance companies use for credit ratings, had reported that someone was trying to collect on me so therefore my rating was down.
So I got online and got my credit report fro Equifax. It was perfect. No blotches on it. I sent it to my local agent who then dug a little further. He emailed and told me that PEMCO uses a third party to assess and use these credit reports—to basically assign the scores and codes. That is, it wasn’t apparently the fault of Equifax even though they were recently hacked. My local rep said, and I quote, “The [PEMCO] rep told me that there doesn’t have to be a collection for the 3rd party to use the collection code…So theoretically I could have given them the information off your report and the 3rd party could still justify the “presence of collection” code…. So essentially I can pull all credit reports and still not know if the score I see on PEMCO is accurate.”
God bless my local agent for being helpful (after I first got angry and was insistent that he actually do something) and honest. I don’t blame him. And he does seem to recognize now what I would say is gross incompetence or built-in fraud regarding credit reporting.
You make the call. Mistake or fraud? But the lesson here is do not accept any increase in your insurance rates on anything without digging into it first.
Brad is editor and chief disorganizer of StubbornThings.
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