For Some L.A. Drivers, Gridlock Is What They Call Their Hunt for Insurance

Despite what some advertisements may claim, for the average Angeleno with a less than perfect driving record, the search for automobile insurance can be a lesson in frustration.

It all began with the notice of non-renewal from 20th Century Insurance. My husband and I had filed comprehensive claims totaling $725 and racked up three accidents between us within the last three years. And even though two of them were clearly not our fault, we were no longer preferred customers.

We had enjoyed low rates for seven years with 20th Century, so we were prepared to spend a little more with another company. But we weren’t prepared to find that no one wanted to insure us.

I called all the biggies, but they didn’t want to hear from me. It seems having three accidents on our record was worse than being convicted of drunk driving. “But two of the accidents were not our fault. We can get a letter from 20th Century proving it.” They were sorry. They wished there was something they could do. “Have you considered assigned risk?”

No, we hadn’t. We didn’t even know what it was. Friends and relatives tipped us off. “It’s easy to get in. Might even be less expensive. The trouble is getting out. No one wants to insure you once you’ve been an assigned risk.”

And so we called FGS. To our relief, they didn’t turn us away or treat us like lepers. They told us there were no fees and no hidden costs. While their rates were almost twice the amount we were paying at 20th Century, we were so happy to be insured that we quickly signed on the dotted line.

That’s when we heard the catch. We would be insured by two companies, FIC and Coastal. The prices quoted for FIC were good for only six months. Then an additional $211 would be due. The rates quoted for Coastal were on a month-to-month basis, meaning our premiums could go up every 30 days. And while FGS charged no fees, FIC and Coastal charged lots of them.

That coverage lasted two weeks. Then we received a cancellation notice from FIC. When I got over the initial shock, I called our agent at FGS. He didn’t remember me. “All the files are at FIC,” he said. “Call this number.” I did. They referred me to another number. At that number I was told that Mr. A would call me back. He never did. I called again and got Mr. B. He told me he’d look into it and get back to me. He never did. I called again. Both Mr. A and Mr. B were out. Ready to pull my hair out now, I called our agent at FGS again to vent my frustration. He told me nothing could be solved by screaming. Then he hung up on me.

At that point, I realized that even if I could get through to FIC to find out why we had been canceled, there was little chance I could get them to reinstate us. Since time was running out (by law, insurance companies only have to give you 10 days’ notice of cancellation) I decided I had better concentrate on getting coverage elsewhere.

I called one company. They turned me down. I called another company. They offered to insure us for $4,500 a year. I called a third company. They said they couldn’t help me but suggested that I call Mr. C at Mercury Casualty. Mr. C seemed like the answer to my prayers. He was sympathetic to my mistreatment at FGS and assured me I wouldn’t have those problems with Mercury. Furthermore, he could write me a better policy for a couple of hundred dollars less, as long as I could get a letter from 20th Century showing that two of the accidents were not our fault.

The people at 20th Century was more than happy to send me a letter. And promptly, too. But the letter I received described the wrong accident for the dates I had requested. Immediately, I called them to ask for a corrected version. “I’m sorry, but that’s what it says on our computer.” I tried to make the woman understand that someone entered incorrect information into the computer. “In that case, you have to notify our claims department in writing.” I did so. After two weeks, I called to ask what the holdup was. “You don’t want the claims department. You want medical.” I called medical and explained my story one more time. “Oh, those files are in storage. We’ll have to dig them out and write you a new letter.”

In the meantime, I set out to get refunds from FIC and Coastal. When the line wasn’t busy at Coastal, I got a recording. “For customer service, press 1 on your dial.” I pressed 1. “That line is busy. To try again, press 1 on your dial.” This went on for three days before I gave up and sent them my cancellation notice and a request for a refund.

Because FIC canceled us, they sent a refund without being prodded. But it was short about $65. When calling the same old phone numbers proved futile, I called the main office in Burbank. I asked to speak to the president of the company. I settled for his secretary. She referred me to someone who referred me to someone else who referred me to a third person who promised to call me the next day and actually did. She told me that the agent at FGS had quoted me prices from a book that expired more than six months ago, and consequently, our rates were raised before we were even insured.

Eventually, I received a refund from FIC based on the amount we were originally quoted. Eventually, I received a refund from Coastal, minus about $49 in policy fees. Eventually, I received a corrected letter from 20th Century, which I promptly forwarded to my new agent.

Forty-five days and $745 later, I still had not received a policy from Mercury. My agent reassured me. “You’re insured, you’re insured,” he said me. Within three days I received a cancellation notice.

By now it was either blow my brains out or laugh. I chose the latter. When I called my agent, he didn’t seem surprised. “Did you tell Mercury you were injured in one of your accidents?” Yup, I sure did. “Uh, oh. They don’t insure anyone who’s had an injury.”

Next stop, assigned risk. My newest agent, Ms. D, assures me we’ll be able to get out of it when the one accident that was our fault comes off our record in January. The bad news is we have to be written by three different companies--one for the basic coverage, one for the excess liability on our leased car, and one for comprehensive and collision. Not to mention the fees we’ll have to pay each company.

It’s now been four months since our non-renewal notice from 20th Century. I think we’re insured. At least I know I’ve paid another $1,052, and I have a payment book for eight more payments of $301 each. Yet I’ve received policies from only two of the three companies. My agent says that it’s because she used an outdated application and it was sent back to her to be redone. “Not to worry,” she reassured me.

Me worry?