05-17-2006, 12:02 PM
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Go Army!
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Real Name: David Harville
Location: Ellicott City, MD
Hybrids: 2005 Prius
Posts: 178
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Re: How to fire an Insurance Company
Good letter.
FYI, from http://www.revenue.alabama.gov/motorvehicle/pdf/stfarm.pdf :
"According to Alabama law, Section 32-8-87(d), Code of Alabama 1975:
"[A] total loss shall occur when an insurance company or any other person pays or makes other monetary settlement to a person when a vehicle is damaged and the damage to the vehicle is greater than or equal to 75 percent of the fair retail value of the vehicle prior to damage as set forth in a current edition of a nationally recognized compilation of retail values ...
"Alabama law is similar to most other states - a vehicle with a salvage title (as a result of a total loss) cannot be driven on the highways of Alabama. Further, it cannot be re-registered, and a license plate cannot be issued for the vehicle. In either case, the sale of the vehicle requires notice be given to a buyer that it is a salvage or rebuilt vehicle. This is also important for subsequent roadworthiness due to the potential liability of the seller to another consumer/owner that might be injured because of the condition of the vehicle in a subsequent accident.
"According to Alabama law, only a "licensed" rebuilder may apply for an inspection of a rebuilt (previously salvaged - total loss) vehicle."
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Because of the Prius, I have become a much safer driver . . . a fact that seems to have escaped Allstate’s notice.
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You did not change, in any automobile insurer's "eyes", unless you moved from one classification to another because of age group change or commute distance group change (or gender change  ) -- or if an older accident got old enough to not figure into your rating any more.
Also, in general, a newer car will have higher collision and comprehensive premiums than an older car of similar class.
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Perhaps it is cheaper for Allstate to find new customers than keeping the long established ones they have.
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As you probably know, in just about every business, it is far cheaper to keep an existing customer than it is to acquire a new one. (Off the top of my head, I can't think of any business where that's not true, but I would not be surprised if someone else could.) It is definitely true for auto insurance companies.
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