Archive for the ‘Business’ Category

Preventative Care Claims Denied – Congress To Target Auto Insurance Fat Cats

Sunday, April 25th, 2010

NOT Tomko's Ford Focus

DES MOINES – When Bill Tomko presented his Progressive Insurance card to Walmart Associate, Kerry Holt, he was surprised to learn that his Synthetic Package Full Service Oil Change was not covered. “At first, I thought it was some sort of mistake,” says Tomko, “I had just recently upgraded my insurance to full coverage.” Tomko, 25 and a Progressive customer since 2005, had in the past carried only liability but upgraded his coverage after purchasing an “almost brand-spanking new 2008 Ford Focus. Before this baby, I just drove junkers. I never needed all the bells and whistles on my policy. I didn’t even need to change the oil. My last rig burned enough oil that all I had to do was add a quart or so every week.”

An unnamed representative from Progressive said that as far as he knew, his auto insurance company “has never paid out an oil-change claim.” The news of across-the-board claim denials for the most basic preventative care has reached Washington, garnering the attention of Congress and the nation’s highest office. While answering questions on Wall Street Reform on Friday, President Barack Obama said it was “disturbing and unfair” when asked his thoughts on the wholesale claim denials in the auto insurance industry. Senate Majority Leader from Nevada, Harry Reid, is demanding a Congressional Hearing and plans to subpoena the CEOs from major auto insurance companies. Congresswoman, Nancy Pelosi, from California’s 8th District, agrees with Reid on scheduling hearings so the auto insurance industry “fat cats will be forced to let us take a peek under their hoods so we can see what’s in it.”

When State Farm Insurance Actuary, Dennis Young was questioned on the ethics of his industry, the fiery Young exclaimed that “it would be ridiculous to cover such claims. Do you have any idea how expensive auto insurance would become if we had to cover everything. It’s called insurance for a reason, to cover the unexpected major loss, not the expected preventative maintenance” The outspoken Young continued, “Maybe the government can take over the auto insurance industry if they think they can make it more comprehensive and affordable. Good luck, retards!” Pelosi may agree, stating that “millions of jobs would be created” if such a take over would take place. National Institute for Automotive Service Excellence spokesman Andy Fields also supports such a takeover, “This would be a windfall for our ASE Certified Automotive Professionals. They could easily start charging 150 to 200 dollarsĀ for an oil change.”

The uncovered oil change seems to be the least of Bill Tomko’s problems and brings up perhaps another reason for supporting a government take over. Tomko has had several citations in the last five years including two speeding tickets, a failure to yield citation, and a misdemeanor DUI. If he gets one more ticket this year, there is a good possibility that Progressive may drop him. Says Tomko, “I can’t believe this crap, I can barely afford the 150 bucks a month I pay for full coverage now and they won’t even pay for an oil change. Now they might even drop me? What do they expect me to do, get rid of my Focus and go back to driving some crappy old used car?” If Tomko is dropped, he may be forced to purchase expensive high risk insurance from another company that still would not cover his right to basic preventative care or become one of the millions of uninsured motorists in the nation. It has become painfully obvious that the auto insurance industry is broken and it is going to take more than an ASE Certified Mechanic to fix it.