WILLIAMSVILLE, NY (WKBW) — Adirondack Insurance Exchange sent a letter to its customers last month saying the company’s “financial condition continues to deteriorate” and customers would need to find a new company for insurance coverage.
Daniel Perrone
The above letter was sent to Sarah Andrews, a North Collins woman who has a policy with Adirondack, but is now suing the company. The lawsuit, served this week, alleges that Adirondack denied her $300,000 claim after she was involved in a serious car accident in Erie County last year.
“Without any explanation, we received a denial and letters essentially saying we are not going to pay this insurance claim. We are not going to provide the full amount of insurance because they do not believe the amount of compensation is appropriate,” said Andrew’s attorney Daniel Perrone.
Perrone said Andrews broke her arm in three places and suffered permanent damage. Perrone said Andrews was never informed of the company’s financial problems when she became a customer. She is now seeking more than $300,000 from the company, which now has until mid-September to respond to the lawsuit.
“Unfortunately, they ran into financial difficulties and had to exit the insurance business in New York State,” said David Kirst, AAA’s insurance sales and operations manager for Western and Central New York.
“It’s more of an immediate thing,” Kirst said. “It’s actually very rare.”
If you are a customer of the Adirondack Insurance Exchange or are looking for a new insurance provider, Kirst has three tips for you:
- Open all mail and emails from insurance companies so you are informed of any changes
- Buy sooner rather than later as prices may rise over time
- Let an agency help you find the right plan for you. AAA can help you over the phone or at one of its branch offices.
- The cheapest policy may not always be the most reliable.
- Kirst said Adirondack likely underpriced the policies, which caused problems. He said that’s why it’s worth paying a little more for a reliable insurance policy.
“Nobody wants to pay more, but if it’s the right provider for the right insurance coverage, it’s worth it,” Kirst said.
The Adirondack Insurance Exchange website states: “If your policy is canceled before the expiration date, you will receive a prorated refund of all premiums paid for the period after cancellation. We will notify you monthly of the transition.”
7 News reporter Michael Schwartz went to the Adirondack Insurance Exchange branch in Williamsville, where there were no cars in the parking lot. Schwartz called the company and was connected to a telephone operator who told him there was no way for Schwartz to reach anyone at the company.
