Complaint Review: Florida No Fault

When you go into a Florida No Fault Insurance office, Cash Register Office, Friendly Auto office or Direct General Office they scam you.

For years they had minimumquota requirements for their agents where if they did not sell enough "Ancillary Products" they could get fired, then when the heat was on, they changed it to get a raise, and then becuase of the laws in Florida, they told their District Managers not to say minimum standards anymore but use the words goals instead. Then fing some other grounds to terminate the employee.

The "extra's" they add are a Rental reimbursement plan which costs $60. It pays UP TO $25 a day for up to 10 days. The problem with this is they take longer than 10 days to get your car repaired, so then you are without a vehicle. It is also a reimbursement plan where you pay the bill and then try to collect your money from a third party. There are alsomany hidden "cathces: in the contract. The second thing thet add is an "Accidental Medical Policy" This supposedly pays $125 a day when your in a hospital because of a car accident. It costs either $110, $175, or $200 depending on wether they give you the single, couple, or family plan. At no time does the agent tell you it is a surplus lines product, that it will pay $125 a day total regard less of how many of your family is in the hospital. And the third thing they put on your policy is a term life policy. It is for $10,000 and cost either $108 or $256 depending on your age.

Agents make no comission selling you your auto policy. They only make comission if they add these products to your policy. They make it easy as they do not charge any down payment on these extra's. Just a few "extra" dollars a month. REALITY is it can add up to $56 a month to your premium. I have seen people go in and get an auto policy for $300 a year and end up with $700 because of the extra's.

This would still be OK if the agent told the truth about the products, disclosed the limitations, and told you of the cancellation procedures. If you call and cancell your auto, they do not cancel the extras unless you ask them to. Also, the medical policy is 50% earned even after one month. Also, many agent do not tell the client these are optional coverages, and "slide" the paperwork in front of you for signatures. They cover thier butt by having you sign a form saying they are optional, but these are never the first forms you sign. They mix them in with the auto app papers and after 15 pages or so most people just start signing. BUYER BEWARE!

The last problem with these companies is thier coverage. In Florida a person must have property damage and personal injury protection to buy a tag. (PIP/PD) However, to be leqal to drive in Florida a person must also fulfill the "Financial Responsibilty" provision of the law. It states you must either purchase bodily injury insurance (BI), post a $30,000 bond, or be able to self pay any claims immediately. BI is sold on less than 9$ of all of their policies. And considering their clients who lease a car, or have an SR-22 are required to have BI, voluntary BI purchases are next to nill. If you have an accident without BI and can not immediately settloe the claim the State will revoke you drivers license and to get it back you must carry and SR-22 for 3 years. An SR-22 is a form the company provides you and the state saying you are now carrying BI. Ask any reputable company i.e. State Farm, Allstate, Nationwide etc. and they do not offer policies without BI. The reputable companies which do, explain why you need the BI coverqage and let you decide. Direct (PARENT COMPANY) tells their agent not to sell BI at all. They have a written quote script and it does not mention BI at all.

William
Gainesville, Florida
U.S.A.