Saturday, March 4, 2017

**** Liberty Mutual Accident Forgiveness Ethics **** --- Sayonara, Adiós Liberty --- Bon jorno GEICO! ---

We happily switched insurance companies to Liberty Mutual in summer 2014... not due to unsatisfactory services with former insurance carrier State Farm... the change simply due to a small cost savings.  Recently we discovered our Liberty Mutual "Accident Forgiveness" is revoked -- the highly advertised auto insurance policy provision where no price increase will be extracted by Liberty Mutual for your first accident.

Well, here is the real story.  In early summer 2013 and while happily served by State Farm auto insurance, a severe storm deposited significant hail on our home and our two vehicles parked in our driveway.  My 2009 Dodge Charger experienced minor hail damage -- just a couple small dents -- not enough to ask for insurance help.  However, Terri's new 2013 Jeep Grand Cherokee, then being less than five months old, experienced very significant hail damage. Small dents covered most of her Jeep's topside surfaces that required professional services and an insurance comprehensive claim.  We are highly concerned and outright angered that Liberty Mutual Insurance Company considers "Acts-of-God" (a/k/a: hail storm damages) comprehensive claim that exceeds $600 against our previous insurance company as an accident with cause for revoking our current Liberty Mutual accident forgiveness.

Insurance claims directly connected to Acts-of-God are never mentioned in any of the many Liberty Mutual Insurance Company on-air advertisements or in any plain language citation in company literature. These facts have been twice verified with Liberty Mutual customer service representatives on or about 18 Jan 2017, and verified again a few days ago.  I asked to speak to a manager empowered with decision making authority... and I was assured that a manger would contact me by phone within two days. The promised management phone contact was never received. Accordingly, I intend to file a complaint with appropriate insurance industry public and private sector authority citing these facts and to allege unethical conduct by Liberty Mutual Insurance Company regarding this matter.

So here's the Liberty Mutual deal.  A couple of this insurance firm's TV ads aggressively tout "Accident Forgiveness" as an auto policy marketing inducement.  The firm never discloses a provision whereby this forgiveness will be suspended for 5 years if a policy holder makes an Act-of-God claim against paid comprehensive auto insurance coverage.  So what type of injury requiring less than $600 can Liberty cite?  Clearly, an official corporate policy that suspends paid "Accident Forgiveness" for five years due to relatively small claims caused by clear Acts-of-God is GROSSLY UNETHICAL.  Damages caused by Acts-of God are NOT auto accidents as understood by reasonable people or by any classic ethical business definition.    

Direct quote from Liberty Mutual Insurance web site:

"What is Accident Forgiveness?  Accident Forgiveness is a policy benefit where Liberty Mutual won’t raise your rate due to your first car accident if you’ve been accident-free and violation-free for 5 years."

Click HERE to check out what unethical insurance advertisement looks like.

Note: the image displayed at the top of this post is from a personal collection shot during a NY City visit years past.


1 comment:

  1. Adiós Liberty Mutual Auto Insurance; hola GEICO! dj