Auto Insurance Industry Encourages Drunk Driving...  

Yeah, apparently you have to think like a scum sucking lawyer to avoid needing one. ;~D

According to my agent, as long as the permission to drive your car is given while you are still sober, the friend will be covered.

Actually, there were two things going on in your incident.

1) You do not have a company with "accident forgiveness". Some companies will forgive ANY accident you have if you have not had any claims with them for 2 - 5 years previous. The actual time to qualify depends on the company; but, if your company does not have this feature, I would change companies.

2) The company was not just looking at the cost of a broken taillight. They were looking at an individual who USED to be a responsible individual and suddenly left a vehicle in a condition where it coould go rolling with NO ONE in it. - No parking brake set, vehicle not left in gear, parked on a slope and the wheels NOT turned to the curb. They do not know if this is the start of a serious problem or not: alzheimers, senility, drugs, etc. or just a simple isolated case of stupidity. If you have no more accidents after a couple of years, your rates will go back down and they will just assume it was an isolated incident; but, for now, they are covering themselves in case the next accident in a couple of months is not minor; but, $20,000 or $200,000 or even more. What if a child had been hit instead of a vehicle? How much would that have cost - broken bones, broken spine, crushed skull? How can you put a price on something like that . You were very lucky it was just a taillight on a vehicle.

Hey Cow

WE can add the IRAA to that list of crooks as well too.

I agree that insurance companies can tend to be really greedy but given the light of this, I have to say right now that my husband and I will be checking into this with our insurance agent.

I have to say right now that I have never had a problem with my insurance agency but then I pay more for a lower deductable.

Mooch

Then there are people who make excuses for them.

If you got the waiver (or any other permission) before they get drunk, you are ok. It's just if you take the keys from the person and drive them home in their car that you aren't covered.

So, if your friend is too drunk to drive, don't take their keys from them and drive them home...

Give me a break!!!

"So, if your friend is too drunk to drive, don't take their keys from them and drive them home... Give me a break!!!"

I did NOT say not to drive them home. I said do not drive them home in THEIR vehicle and then leave them at home with their vehicle AND their keys. Or, are you too cheap to use your gas to take them home and then pick them up the next morning so that they can get their car when they are sober. I also said to call them a taxi or shuttle: especially, if YOU have had a drink or two yourself.

But what if a group went to the party in one car... and it isn't yours.

Unless the vehicle owner gave permission to the rest of you to drive him/her home if necessary - BEFORE they started drinking: take a cab, a bus, a shuttle, or get a ride from someone else who is sober.

Of course, you coould also walk, if the distance isn't too far.

When my husband and I go out together, we decide before we go, who is the designated driver and who is the designated drinker - so this is not a problem for us. Even when we were dating this was what we did and so we were giving each other permission to drive whichever vehicle was being used before we even got to a party, bar, restaurant, etc. If we were going someplace local, we would just walk there - both drink - and then walk home. It is safer and a lot more fun.

True, it is best to do that... but for everyone but the insurance industry, the responsible thing to do is take the keys from someone too drunk to drive.

But they don't give a crap about responsiblity. They only care about who they can stick with the bill instead of them.

But, that is just the point.

The insurance compay DOES want you to take a drunk's keys away from them.

They just don't want you behind the wheel of an unfamiliar vehicle that you do not have PERMISSION to drive.

Oh yeah, like driving each vehicle requires a different set of skills. Keep making excuses for them, before long you'll sound as lame as they do.

It is not the "set of skills" that an insurance compny has a problem with.

Before a company insures a driver they basically do a "background check" on them - tickets and past accidents. They know what type of driver they are insuring.

But, when an insured driver gives permission to someone else to drive that vehicle; the company does NOT know what type of a driver that person is. So, they have to rely on the judgement of the insured driver to only allow good drivers with valid driver's licenses to use their vehicle.

If the insured driver is incapacitated by alcohol, drugs, or an injury; the insured driver CANNOT make that decision. The insured driver cannot even make sure that you have a valid driver's license or decide whether you are a person they would EVER let drive THEIR vehicle. (There are some people I would loan my car to and others who will NEVER get their hands on my keys or my car.) I am sure you know some people like that.

related resources: background check company, person background check

That's a good point, but it doesn't work because my insurance agent doesn't care who I give my keys to... anyone I give the keys to is automatically insured. Even if the person I let drive my car turns out to have a bad driving record that I didn't know about, they'll still cover a claim.

I know there are MORE responsible ways to avoid drunk driving, but the insurance industry has taken away our last line of defense.

Your insurance agent and the insurance company have different agendas.

You insurance agent is paid a commission, a percentage of the premiums you pay the company. The more you pay, the more he makes.

The insurance company makes money by taking in premiums. From those premiuims they pay the agent, their staff; advertising and overhead expenses and they pay claims. Anything left over is profit or in some years loss.

The contract you have with the company does say you are to use "reasonable judgement" when giving permission to use your vehicle. Read the entire policy some time; not just the updated dec pages that lists your coverage; but, the ORIGINAL multi-page policy. It can be a real eye-opener!

If you give permission to someone who is a poor driver; they will cover the claim. The insurance company decreases their profit. Your rates will go up. Your insurance agents commission goes UP - he just got a pay raise1

Of course, your agent will tell you to loan your vehicle to anyone you want. He wants more money even if you are the one who ends up paying for it. If you were to actually ask the insurance company - adjusters and claims; they would tell you that they want you to make sure you only loan your vehicle to safe, responsible drivers.

Probably the best points you've ever made in my discussions. Way to start a year!

speakeasy, for the most part I agree with you, but I do have a bit of a problem with this "Of course, your agent will tell you to loan your vehicle to anyone you want. He wants more money even if you are the one who ends up paying for it."
Actually that is not the case. As an agency specialist for an agent who's been at it 35 years I can tell you from personal experience the last thing we want is to see one of our insureds have an accident and see their premium go up. Here's why...when someones premium goes up the more likely they are to start shopping for lower rates, which means if you lose their business you lose that commission totally. You also lose the possibility of getting that "word of mouth" business. And in an age of big media advertising nothing beats a great referral. Also, that accident counts against each individual agencies P&L, which means the company docs you in bonuses and incentives because your insured cost the company money.
Contrary to popular belief insurance agents aren't making big money. Each agent is usually an independent contractor, meaning they are self employed. I know the company I work for pays a whopping 9% commission for auto policies and 14% on homeowners. When you think about it on that level that's $90 for every $1000 in auto premiums. And out of that they have to pay for their office lease, bank fees, an accountant and office staff.
We had one insured this year that started a policy in April, had a major at fault accident in June and cost the company over $200K. When her premium went up in September at renewal she opted to go to a lower rate at a substandard company. Her original premium had been $400 for 6 months. Guess who's not getting a bonus this year because of that one accident? Nobody in our office...
I'm sorry for going on forever, but I think you have it a little backwards. Although I believe all companies, from the agents all the way up to the CEO's intentions are good, the only people making any money are those that have the large offices in the home office, and really, they could care less whose driving your car, they are just looking at the bottom line.

related resources: home care agency, personal care

Actually, soccermom, I agree with you IF the person has a GOOD agent. But, you have to admit that not all agents are equal - aome are great, some are good, and some never look beyond saying wht will make the customer happy right now whether it is true or not.

I have been a P&C agent for the past 8 years and I am now giving it up. I was a GREAT agent and when needed I explained the hard facts to them whether they wanted to hear them or not. As a result, I was underpaid and overworked.

These same people would go to other agents "who told them what they wanted to hear" just so the agent could make the sale and then later on the truth would make them mad at that agent when it finally came out. These "say what it takes" agents made the rest of us look bad, until they finally got found out by their clients. These agents also had a tendency to switch insurance companies frequently - because of losses and poor client retention.

But, any P&C agent who JUST tells a client they can loan their vehicle to anyone they want and does not tell them the consequences of that person having an accident is one of the "say what it takes" agents.

Also, some of these agents have little or no competition. I have seen some who were the ONLY agent in town and if you wanted a real person to help with your insurance they were the only choice. A lot of my clients wanted a person they could see in person and did not want to deal with websites and 800 numbers.

Their is... they are scum.

Exactly! They would rather pay a bottom feeding lawyer than have to pay a claim to someone who did the responsible thing.

That doesn't really wash since insurance does cover any licensed driver you let drive your car.

It does make one wonder, doesn't it.