Insurance Companies, Lame Excuses

[fakegt]

I've been told some of the lamest excuses over the last couple of days why an Insurance company won't insure my vehicle.
As a HIA Member( Housing Industry Association) I have my builders Insurance through Vero which is brokered through the HIA, they also offer Commercial vehicle insurance, great I'll get a quote. OK, they wanted to know stuff all and gave me a quote $250 below another. OK, I send and email listing all the factory options it came with(BA MKII One Tonner E Gas,AC,Cruise,ABS,Tow Pack etc) and tell them I had added a Canopy($4500 replacement value) and a tool box.($1100 Replacement value)
They ask how much I paid for it, $8900 unreg, No RWC.
They send me an email now refusing to insure it becuase it was purchased with no RWC and Reg?
I call them and tell them that means Jack, as I had paid a third party for a full RWC and had the Lapsed reg(7 days) transfered into my name and paid 12 months reg on the day, Total outlay $10,300 I bought it at wholesale price through family.
They email me back and say they have refused to cover me because.
1: I have modified the vehicle by putting on a canopy and toolbox!
2: I paid too low a price for the vehicle!

Now, I'm still getting over this, A Building Industry Association that can't cover tradies vehicles! WTF, All tradies have boxes, canopies, roof racks etc MODIFIED VEHICLE????
I did'nt pay enough for the car???
What so if you buy a $5 raffle ticket and win a $65K GT you cant get cover because it was too cheap?
They told me to try "Just Car Ins" because the do modified stuff!
I went to RACV, No problems, Market Value cover $16,500 and all extras are covered. I had quotes though GIO, AMMI and Allianz, all had no problems.
Now, will they still give me tool insurance?, I'm a bit off a risk, I might actually use the tools!
Dave

[Jack91]

Sort of know how you feel. I loved getting this one over the phone "David, dont touch that car, if you do anything to your car we wont cover it". For 3rd party property damage only. Said some expletives, called just car, got the same cover unlimited legal mods, for $50 a year cheaper and excess $150 cheaper.
Edit - This was to inform them of the K&N panel I had just put in, when I first registered the car with them I had to pay $21 because of the exhaust it had on it.

[gocruzin]

Mate that sucks id take the emails into the fair trading mob or that ACCC you hear about on the news see what happens
Bunch of mooks should get a dose of their own beuracracy

[Yaw]

Ok, from an insurance industry point of view:

Surely you would rather them tell you up front before they take your money that they cannot cover your risk under thier guidelines and refuse your buisness, or would you prefer them to take your money and then find out later when you make a claim that what they cover is not what you were after?
Like it or not insurance is a business, they do NOT have to take on a risk just becuase you want them too. It is a buisness descion, they have every right to say no.

Now you mention one of the things they told you was you paid too little for the car. It depends entirely on what the PDS states or what they are offering to cover it for. A lot of insurers will shy away from cars bought at auction/unregistered etc. Insurance is about putting you back in the postion you where before the loss (accident/theft/damage) So bearing that in mind if you have paid *plucking figures from the air for example purposes only*
$1000.00 for a $10,000.00 car and you write it off, your loss is what you paid not what it was worth. Now when you do buy a cheap car it brings up the question of why was it so cheap?
Ok I understand there are some that are just bargins, but in order to ensure the car is what you say it is, they would have to have an assessor go over every car that fell into that category. Pretty expensive exercise from business point of veiw. Sometimes it is simply cheaper and easier to refuse buisness that falls into that category.

You may find what I have said lame, but please just take it as a few examples of what may or may not be the case.
Bottom line is like any buisness they DO NOT HAVE TO service every single person.

[gocruzin]

Well worded argument there fair enough, but i still don't trust insurers fully some will leave you high and dry even when you make a proper claim.

[fakegt]

Originally Posted by Yaw

Ok, from an insurance industry point of view:

Surely you would rather them tell you up front before they take your money that they cannot cover your risk under thier guidelines and refuse your buisness, or would you prefer them to take your money and then find out later when you make a claim that what they cover is not what you were after?
Like it or not insurance is a business, they do NOT have to take on a risk just becuase you want them too. It is a buisness descion, they have every right to say no.

Now you mention one of the things they told you was you paid too little for the car. It depends entirely on what the PDS states or what they are offering to cover it for. A lot of insurers will shy away from cars bought at auction/unregistered etc. Insurance is about putting you back in the postion you where before the loss (accident/theft/damage) So bearing that in mind if you have paid *plucking figures from the air for example purposes only*
$1000.00 for a $10,000.00 car and you write it off, your loss is what you paid not what it was worth. Now when you do buy a cheap car it brings up the question of why was it so cheap?
Ok I understand there are some that are just bargins, but in order to ensure the car is what you say it is, they would have to have an assessor go over every car that fell into that category. Pretty expensive exercise from business point of veiw. Sometimes it is simply cheaper and easier to refuse buisness that falls into that category.

You may find what I have said lame, but please just take it as a few examples of what may or may not be the case.
Bottom line is like any buisness they DO NOT HAVE TO service every single person.

One of my biggest problems with this whole saga is that I am going through a building industry specific broker, a broker who should understand its client base and deal with underwritters who are open to there clients business needs. I pay a fair wack of dollars each year to be a member of the HIA and expect them to deal with companies who are happy to let tradesmen "Modify" their work vehicle by putting on a canopy and tool box.
There was no explenation to the "You paid to little for it " remark, my take on it was they were expecting me to have it disappear next week and clean up on the pay out, a 2 minute conversation to explain to people outside the industry would have gone a long way.
OK they don't have to take my business, but everyone else washappy to. They were all given the same imformation and figures.
Dave

[Yaw]

Originally Posted by fakegt

One of my biggest problems with this whole saga is that I am going through a building industry specific broker, a broker who should understand its client base and deal with underwritters who are open to there clients business needs. I pay a fair wack of dollars each year to be a member of the HIA and expect them to deal with companies who are happy to let tradesmen "Modify" their work vehicle by putting on a canopy and tool box.
There was no explenation to the "You paid to little for it " remark, my take on it was they were expecting me to have it disappear next week and clean up on the pay out, a 2 minute conversation to explain to people outside the industry would have gone a long way.
OK they don't have to take my business, but everyone else washappy to. They were all given the same imformation and figures.
Dave

Sounds like you need to get a better broker. Brokers are supposed to find you the best deals on what you need. They should be able to deal with a vast array of insurers. It suprises me that they did not find you an alternate comercial insurer. By rights any broker should be able to find you cover for ANY risk, (of course may be more than you are willing to pay) But big insurers like Lloyds of London for instance are a reinsurer, in otherwords, they insure the insurance companies against large losses (eg cyclone larry)
But unfortunatley the world of brokers have deals with certain insurers where they get better commisons, so they don't always look at other options where they should.

[fakegt]

Originally Posted by Yaw

Sounds like you need to get a better broker. Brokers are supposed to find you the best deals on what you need. They should be able to deal with a vast array of insurers. It suprises me that they did not find you an alternate comercial insurer. By rights any broker should be able to find you cover for ANY risk, (of course may be more than you are willing to pay) But big insurers like Lloyds of London for instance are a reinsurer, in otherwords, they insure the insurance companies against large losses (eg cyclone larry)
But unfortunatley the world of brokers have deals with certain insurers where they get better commisons, so they don't always look at other options where they should.

It all gets down to poor comunication, I tried to speak to Vero direct and just got put back onto my broker.
A couple of years back after having agreed value insurance on the last ute for 10 years straight I recieved the rewnewl, it was half price. After reading the policy 3 times and having the previous one next to it, I discovered that they had taken away the Comprehensive insurance and changed it to Fire & Theft only. When I called to see what was going on, why the change without a cover sheet to explain why, the staff member told me , "thats whats being offered , Take it or leave it!" Again, a short explaination to why would have set me straight.
I go to great lenghts to insure that my customers understand whats going on, because its not their field of expertise, I sort of expect a little of the same when its something that I don't understand.
Team leaders, Educate your staff, and listen back on a few of those calls that get recorded!
Dave

[Yellow_Festiva]

Originally Posted by gocruzin

Mate that sucks id take the emails into the fair trading mob or that ACCC you hear about on the news see what happens
Bunch of mooks should get a dose of their own beuracracy

And this will achieve what exactly? An insurance company does not HAVE to offer you insurance on terms and conditions which you deem 'fair'.

The most you can do in this situation is rant and take your business elswhere.

The N@#A knocked back my Festiva due to the fact I had a flash, non standard paint job. I was more than happy to pay a small premium for their insurance due to the fact that at the time they were very much more cheaper than the next cheapest quote.

Even going to one of their branches was useless.. although the lady did think I was mistaken after I explained my situation "Oh, thats odd, I have arranged insurance for cars with metallic pink and yellow polka dots for a promotional vehicle"..

I just went with another mob, and promised to never talk about or endorse the other company again.

Seems unfair at the time, and still seems unfair now. But thats just the way it goes I guess.

[GT290]

But unfortunatley the world of brokers have deals with certain insurers where they get better commisons, so they don't always look at other options where they should.[/QUOTE]
you hit the nail on the head there, that happens only to often and really, why go through a broker these days with so much information at your finger tips on the internet.

[Yaw]

Originally Posted by fakegt

It all gets down to poor comunication, I tried to speak to Vero direct and just got put back onto my broker.
A couple of years back after having agreed value insurance on the last ute for 10 years straight I recieved the rewnewl, it was half price. After reading the policy 3 times and having the previous one next to it, I discovered that they had taken away the Comprehensive insurance and changed it to Fire & Theft only. When I called to see what was going on, why the change without a cover sheet to explain why, the staff member told me , "thats whats being offered , Take it or leave it!" Again, a short explaination to why would have set me straight.
I go to great lenghts to insure that my customers understand whats going on, because its not their field of expertise, I sort of expect a little of the same when its something that I don't understand.
Team leaders, Educate your staff, and listen back on a few of those calls that get recorded!
Dave

Once again in defense of the insurance company, if you have gone through a broker it is in the brokerage contract with the insurance company they be he ones to deal with you regarding the policy...claims are different as then you can deal with the insurer, but policy realated stuff is why a broker gets thier commision which is why it is thier job to explain policy related things to you and not the insurer.

[gocruzin]

How can you defend them when he clearly is getting the same old doubledutch runaround that so many insurers/brokers give people just to save a buck or two.
Like the man said it just takes a bit of time and common courtesy to explain things so both parties understand, but these people would rather keep him in the dark and feed him bull like the mushroom they obviously think he is. My advice would be to cancel your other policies and find another insurer stuff em if the won't spare you two mins to explain.. :(