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Insurance Companies Deny Claims, Reality

Every decade or so, there is a new breakthrough in automotive security. Surely everyone remembers “The Club,” steering wheel locks, ear piercing car alarms, and locating technology like “Lojak.” Although all of these devices worked in different ways, they all have one important thing in common: None of them are the least bit effective against experienced car thieves.

This shouldn’t be surprising. Stealing cars is what they do for a living, after all, and new technology simply means that they have to do a little bit of homework and come up with a way around it. With the amount of money that a car thief can make on a given night, they can hardly be expected to simply throw up their hands and give up because they aren’t prepared for the latest gadget. The effective shelf life of any anti-car theft device is, at the most, two years.

The latest anti-theft device is called transponder technology. It has been standard in most European cars since the mid 1990’s, and many American models have since followed suit. Put simply, a transponder is an electronic back up for your key. A small transmitter is placed onto the key to your car. It emits a very specific frequency which is picked up by the on-board computer. If the computer does not recognize the frequency, or if there is no frequency at all, the engine won’t start.

This technology is admittedly brilliant. But as many people have been finding out, it is certainly not impregnable. A recent article by Brad Stone in Wired shows how, like every other auto theft device that preceded it, transponder technology has lost its effectiveness. Thieves are finding more and more ways past this obstacle, and more and more transponder equipped cars are disappearing from driveways and parking lots.

According to the article, car dealers are aware of this. Repair shops are aware of this. Auto locksmiths are aware of this. The police are aware of this. The owners of the stolen cars are most certainly aware of this. The only people who apparently refuse to believe that transponder technology doesn’t work anymore are, perhaps unsurprisingly, the insurance companies.

Brad Stone mentions quite a few victims of car theft whose claims are not only denied by the insurance companies that represent them, but are almost accused of theft themselves. They are doing this on the grounds that they believe that the transponder technology is foolproof, and therefore, impossible to steal. So anyone who claims that their transponder-equipped car was stolen must be lying and trying to get one over on them.

This would be the equivalent of someone not believing that the Titanic sunk for no other reason than the press said it was “unsinkable.”

There seems to be something utterly disingenuous about this. If the police, car dealers, locksmiths and auto repair shops are aware of the weaknesses, then surely State Farm, Progressive, GEICO, Allstate and all the other multi-billion dollar insurance conglomerates must be aware of it as well.

We found this to be a perfect example of what you can expect from an insurer in the event that you are severely injured in an accident. If the standard response for car theft is outright denial, imagine what you will be dealing with if you file a claim for a serious, life changing injury? What if you suffer from spinal trauma or a brain injury and need a lifetime of medical care? If these insurers are so underhanded and tight fisted over an automobile, what help do you think that they will give you?

If you or a loved one has been in a serious accident, we cannot give enough emphasis to the importance of obtaining legal counsel. We recommend speaking to an attorney before you make any contact with the insurance company, especially if the accident wasn’t your fault. Contact our offices for a free legal consultation today.

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Lewis & Tompkins
927 15th Street N.W., 9th Floor
Washington, DC 20005

Phone: 202-296-0666

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