[CaptainYooh]

The established claim settlement system between insurance companies sucks and needs cardinal changes. I think it is the single biggest reason for the increases the insurance companies want. Each small claim turns into thousands of dollars by the time every "participant" in the system takes their own cut.

Case in point: my son literally touched the bumper of a taxi that stopped short on yellow on a slippery road. The taxi driver couldn't speak English, so he called his supervisor. Supervisor insisted on driving home with my son to speak to me. I photographed the damage – it was a small scuff, no more than one inch in diameter. No dent, just a scuff. And the bumper was scuffed all over to begin with. I could have had it repaired and repainted professionally for $350-$400 to a like new bumper. One month later, I had a call from the taxi company insurance adjuster asking for all of our insurance details and suggesting that there will be a substantial claim, over $10,000 to cover damages to the taxi company, insurers and the passenger, who "was scared and needed some counseling afterwards". I demanded to see the proof of damage, and they refused to provide it, stating that it was confidential. Are you kidding me??? Long story short, it went to my insurance company and they probably settled it at something, they didn't even care to tell me. My rate will go up, yes, and not because of the amount of claim, but the fact that I will now have an "at fault" claim on my history.

Everyone made money off this claim - adjusters on both sides, some auto-body shop, chiropractor and psychologist that the passenger probably went to etc. Giving the party at fault an opportunity to have the damage repaired in case of small-scale accidents would go long way in having the rates controlled better.