insurance is just sooooo complicated. i call about how much mine would be on a sky later today, but i talked to a good friend of my best friend last night. she worked for an auto insurance company in virginia and had to take a class and a test to be licensed to sell auto insurance in virginia.
i still can't believe what she told me, so i had her repeat is several times and she swears it is true. has anyone else ever heard this?
like i said, it is complicated and you have to understand some insurance words no one ever uses. the first one is "subrogate".
subrogate: to put in the place of another; especially : to substitute (as a second creditor) for another with regard to a legal right or claim
here is an example. you are in an accident that is not your fault. you go to the emergency room and your bill is $1,000.00. your health insurance company pays it. you send a copy of the bill to the insurance company of the driver at fault, company "a", and when you settle with them for the accident they pay you for the cost of the er visit. then your health insurance company, which has already paid the bill, subrogates. they expect to be reimbursed by you, you have to pay them what they paid for the er visit since company a paid you. i know that is complicated. does it make sense? in effect, company "a" pays your health insurance company for your er visit, you do not profit from going.
now it gets weird. a lot of health insurance companys do not subrogate. they pay for your er visit, and anything you collect besides that for medical, you keep. now that doesn't make sense. with that system, you make $1,000.00 for going to the er. she even said that anthem, the largest health insurance company in virginia, does not subrogate. so, if you still have problems after going to the er and go to your doctor, your health insurance company pays for your doctor visit and you collect an equal amount from company "a" which you get to keep. and if your doctor sends you to a specialist, your health insurance comapany pays the specialist and you collect the same amount from company "a" which you get to keep. the more medical attention you get, the higher your bills, the more you make. where is the incentive to recover from the accident?
now it gets unbelievable! can this be true? she swears it is. in virginia, when you buy auto insurance, you are required to get a set amount of medical, i think she said $5000.00/car. when you get in an accident that is not your fault and you go to the er and have a $1000.00 bill, your health insurance company pays it, you get a copy to send to company b and they pay it, AND you get a copy of the er bill to send to YOUR car insurance company and they are required to pay it up to $5,000.00, if your health insurance company does not subrogate, you collect from company "a" and from your own insurance company and they can not raise your rates when you collect for medical. and, the $5000.00 is "stackable". that means if you have two cars on the same policy, your medical bills are covered up to $10,000.
so you could make $2,000.00 for a $1000.00 trip to the er which is paid for by your health insurance company, if they do not subrogate. if your health insurance company does subrogate, you still make $1,000.00.
math is not my thing and all this sounds crooked to me, but she is thirty-years-old and still licensed to sell auto insurance in virginia. is she right???
i still can't believe what she told me, so i had her repeat is several times and she swears it is true. has anyone else ever heard this?
like i said, it is complicated and you have to understand some insurance words no one ever uses. the first one is "subrogate".
subrogate: to put in the place of another; especially : to substitute (as a second creditor) for another with regard to a legal right or claim
here is an example. you are in an accident that is not your fault. you go to the emergency room and your bill is $1,000.00. your health insurance company pays it. you send a copy of the bill to the insurance company of the driver at fault, company "a", and when you settle with them for the accident they pay you for the cost of the er visit. then your health insurance company, which has already paid the bill, subrogates. they expect to be reimbursed by you, you have to pay them what they paid for the er visit since company a paid you. i know that is complicated. does it make sense? in effect, company "a" pays your health insurance company for your er visit, you do not profit from going.
now it gets weird. a lot of health insurance companys do not subrogate. they pay for your er visit, and anything you collect besides that for medical, you keep. now that doesn't make sense. with that system, you make $1,000.00 for going to the er. she even said that anthem, the largest health insurance company in virginia, does not subrogate. so, if you still have problems after going to the er and go to your doctor, your health insurance company pays for your doctor visit and you collect an equal amount from company "a" which you get to keep. and if your doctor sends you to a specialist, your health insurance comapany pays the specialist and you collect the same amount from company "a" which you get to keep. the more medical attention you get, the higher your bills, the more you make. where is the incentive to recover from the accident?
now it gets unbelievable! can this be true? she swears it is. in virginia, when you buy auto insurance, you are required to get a set amount of medical, i think she said $5000.00/car. when you get in an accident that is not your fault and you go to the er and have a $1000.00 bill, your health insurance company pays it, you get a copy to send to company b and they pay it, AND you get a copy of the er bill to send to YOUR car insurance company and they are required to pay it up to $5,000.00, if your health insurance company does not subrogate, you collect from company "a" and from your own insurance company and they can not raise your rates when you collect for medical. and, the $5000.00 is "stackable". that means if you have two cars on the same policy, your medical bills are covered up to $10,000.
so you could make $2,000.00 for a $1000.00 trip to the er which is paid for by your health insurance company, if they do not subrogate. if your health insurance company does subrogate, you still make $1,000.00.
math is not my thing and all this sounds crooked to me, but she is thirty-years-old and still licensed to sell auto insurance in virginia. is she right???