Excerpt from: Motorcycle Lawyer
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| July 11, 2008 | | Allstate, AAA, Geico ORderd to Reduce Rates | Anyone with a motorcycle accident case knows that the insurance companies won't make a reasonable settlement offer, at least until you hire a lawyer, file suit, and put it to them.
With rare exception, the insurance company holds on to the money for as long as they can. In the meantime, you are stuck with your bills and wage loss from not working. They invest what they owe you, and make money on it.
California Insurance Commissioner Steve Poisner is to be applauded for taking the bull by the horns. He ordered Allstate to cut insurance rates by 15.9 percent, a reduction that will save policyholders 250 million dollars.
He didn't stop there. AAA (CSAA) was ordered to make a 100 million dollar rate reduction, and GEICO was ordered to cut rates by 65.8 million dollars.
That's a lot of overcharging by these three companies, alone.
Motorcyclists have really been victimized by the insurance companies, not only because of the delays in payment of claims, but also as consumers.
It is common for motorcyclists to be encouraged to waive uninsured motorist coverage. This important insurance protects riders who are hit by uninsured and underinsured drivers. As the economy gets tighter, this seems to be more of a problem. Estimates are that 25% of California drivers have no insurance. Additionally, many more have minimal coverage.
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