Yikes! Our car insurance is AIG!!!!

NoZSP · 09-15-2008, 05:35 PM

Anyone else here in this situation? We have insured both cars (my present 318ti and the wife's Honda) for years with AIG, they were 40% cheaper than Nationwide and seemed to give good service. But now they may be going belly-up, what to do?:iono: Switch quickly to GEICO or some other company? Will AIG still pay claims on a timely basis if in Chapter 11?

If we switch, should it be ASAP? Or in October when the 128i arrives? Or at the next renewal in November? If any of you know the auto insurance business well, please chime in

08bmw128i · 09-15-2008, 06:03 PM

As an Agent that sells AIG policies, the company still has money set aside in the claim account to pay claims. As a New York based company it still maintains New York Solvency Standards. They also have enough collateral to post if they should need to pay claims.

I would think that you should be fine. I'm sure some other company will come and buy them out or the Government will help them out lol.

Darth One · 09-15-2008, 06:39 PM

i think AIG is still a bit far from becoming a bankruptcy risk...as it is, they are aggressively restructuring to keep their premium credit rating. their revenues have been growing, so if they survive this hit (i think they are going to sell off a ton of assets for pennies on the dollar, but keep their core business), they should be in good shape imo.

Sephiroth · 09-15-2008, 09:30 PM

I wouldn't panic just yet. AIG could always sell off parts of their insurance business to raise money, not sure they'll go belly up.

NoZSP · 09-15-2008, 10:50 PM

I'll just keep my eye on the situation but make no changes in insurance yet.

I currently expect to pick up my 128i on Oct. 11.

Sherifftruman · 09-16-2008, 09:45 AM

Quote:

Originally Posted by 1love

I wouldn't panic just yet. AIG could always sell off parts of their insurance business to raise money, not sure they'll go belly up.

Yes, because the individual companies (at least the insurance arms) of AIG are doing OK, it is the main holding company that is so in the crapper. Of course, if they keep raiding money from the subsidiaris, this could eventually change.

09-15-2008, 05:35 PM	#1
NoZSP New Member 3 Rep 24 Posts Drives: Join Date: Aug 2008 iTrader: (0)	Yikes! Our car insurance is AIG!!!! Anyone else here in this situation? We have insured both cars (my present 318ti and the wife's Honda) for years with AIG, they were 40% cheaper than Nationwide and seemed to give good service. But now they may be going belly-up, what to do?:iono: Switch quickly to GEICO or some other company? Will AIG still pay claims on a timely basis if in Chapter 11? If we switch, should it be ASAP? Or in October when the 128i arrives? Or at the next renewal in November? If any of you know the auto insurance business well, please chime in
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09-15-2008, 06:03 PM	#2
08bmw128i Second Lieutenant 51 Rep 226 Posts Drives: 2018 X5M Join Date: Jun 2008 Location: Lincoln Rhode Island iTrader: (2)	As an Agent that sells AIG policies, the company still has money set aside in the claim account to pay claims. As a New York based company it still maintains New York Solvency Standards. They also have enough collateral to post if they should need to pay claims. I would think that you should be fine. I'm sure some other company will come and buy them out or the Government will help them out lol.
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09-15-2008, 06:39 PM	#3
Darth One drunk poster 6613 Rep 3,649 Posts Drives: M4 GTS \| E46 M3 Join Date: Jul 2008 Location: FL iTrader: (0)	i think AIG is still a bit far from becoming a bankruptcy risk...as it is, they are aggressively restructuring to keep their premium credit rating. their revenues have been growing, so if they survive this hit (i think they are going to sell off a ton of assets for pennies on the dollar, but keep their core business), they should be in good shape imo.
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09-15-2008, 09:30 PM	#4
Sephiroth 4-6-8 234 Rep 990 Posts Drives: for the fun of it Join Date: Nov 2007 Location: Jax, FL iTrader: (1)	I wouldn't panic just yet. AIG could always sell off parts of their insurance business to raise money, not sure they'll go belly up.
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09-15-2008, 10:50 PM	#5
NoZSP New Member 3 Rep 24 Posts Drives: Join Date: Aug 2008 iTrader: (0)	Thanks all. I'll just keep my eye on the situation but make no changes in insurance yet. I currently expect to pick up my 128i on Oct. 11.
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