Insurance Problems

[lucforce]

I had to register to address this issue.

Midwest,

First, I appreciate that you came forward with the concerns of you insurance book. Other than that, I have to go on the defensive.

You made an issue over the claims from ONE quarter and mean to make an example of the the cause of the losses. You admit that one of the largest claims paid out is likely an unscrupulous client. Ignoring the two dollar claim and the likely unscrupulous client, you are raising an issue over TWO claims. Further, your statements later explain that you have no understanding of how "Racing Schools" function or the motives of the clients of said schools.

To put any credibility to the numbers that you are observing, you must first spend those hours that you mentioned that you did not wish to spend and deeply evaluate the clients that you hold and the losses that you have paid out. This must be done for over a longer period of time that a single quarter.

Obviously, if you book a higher percentage of Cobra type cars and you assume equal percentage of claims for all vehicle types, they will have a higher number of claims. How do you know that you are not simply carrying a high percentage of these vehicles?

The same argument can be placed for the value of the cars. As these are essentially new, hand-built cars and are highly sought after, they have a much higher value than say-the average VW Bus. Thus, if the cars are valued and insured for a higher amount- the claims can and will be more costly than other vehicles. I would argue that the issue is not a cobra problem but a collector car problem (remember the Dodge). This is insurance for vehicles that do not rapidly depreciate as a new car would. The rapid new car depreciation of course limiting the insurance carriers losses by design. However, a vintage Corvette in any condition is going to be just as costly or more to repair as a Cobra-any many are similarly priced and are driven aggressively.

Everyone should attend "Racing School." This is the place to learn to CONTROL a vehicle. Very few people can control a car of any sort under the any conditions. Where do you expect this knowledge to come from? I do not recall much being taught at the DMV. The car dealers neglect this as well. All that is left is the insurance company, and all mine ever wanted was a piece of paper from the aforementioned DMV and a piece of paper from my bank.

I take my insurance agent to have as much technical and automotive knowledge as I take you to have-very little. Not trying to be offensive, I am merely stating my observations from your posts on this thread. I would never mention my racing experience (not with any vehicles insured with him) or driving school attendance to the man, simply because of my expectations of his reactions. He, like you, does not understand these things. People that simply wish to learn to drive fast (as you stated) are NOT going to spend the time and money to wait and go to driving school-they are simply going to drive fast. True, some aggressive driver do attend the schools-but they do take something from the schools with them. Most of the attendees, though, attend to learn.

Motorcycles come to mind. I laugh EVERY time someone I know purchases a new bike. I tell them "...be careful, but you are going to wreck it and mess it up..." I have never met a rider that did not have an accident. It is usually when they decide that they want a motorcycle and go out and purchase a new bike, that the disaster ensues. More experienced riders rarely have accidents-when they do they are usually not at fault. This is because they they have learned to CONTROL the machine.

I contend that you had a bad month and reviewed some paper work to find that last quarter, you had to pay some claims on some Cobras. You posts state that you did no research into the issue any further, and then you posted a warning to all current and future Cobra owners while trying to find a way to punish "those rectums."

I understand the principles of business, but what I do not understand is this witch hunt. I think that you are simply experiencing sticker shock.