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“What’s In Your Policy?”
May 15, 2008
In 2007 the insurance industry’s profits were reported at
$65 billion down from the record $67.6 billion set in 2006. The Consumer Federation of America’s insurance director, J. Robert Hunter, said insurance companies have enjoyed robust profits and contained losses largely by “methodically overcharging consumers, cutting back on coverage, underpaying claims and getting taxpayers to pick up some of the tab for risks the insurers should cover.”
The Consumer Federation advises consumers to review policies they buy or renew to see if deductibles or exclusions could force them to pay for wind damage, mold or other problems. Recently, insurance companies have discovered another “technique” to reduce the amount that it pays while still charging the same amount for the policy. The USAA Insurance Company has a so-called “drop down” coverage that allows it to reduce the limit of coverage paid to a family member injured in a motor vehicle crash. Unfortunately, the so-called “drop down” provision was ruled legal by the Minnesota Court of Appeals. This represents another assault on the consumer and also another reason why insurance policies must be read in order to fully understand what is being purchased.
We strongly urge you to ask questions and shop around before you purchase or renew your policy. It is important to know whether your family has the protection that you think you have purchased. If you have questions about your insurance policy, you may contact Swor & Gatto, P.A. anytime to discuss a specific policy provision or simply inquire about insurance coverage in general. Remember, you may always contact Swor & Gatto, P.A. without cost or obligation.
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