Ford's answers to the NHTSA 6.7 Investigation

Huntindog wrote:
I saw a post on another forum where Gieco is charging 66.99 for 6 months for MBI on Ford 6.7s....My GM is only 16.96 for the same coverage.

While both of these premiums are reasonable, there is a huge difference. Gieco must be aware of Fords warranty policy and is pricing their coverage accordingly.

Couple of issues here.

That can itself be a very interesting red flag, because we know there could not be many payouts of Ford 6.7s (for a claims history) unless they are basing it on 6.0 and 6.4.

With 5 year 100,000mile coverage, there are still a lot of 6.0s made in late 2007 that is covered under the emissions warranty.

It would be real interesting to know if they did base it on their payouts on comprehensive claims (eg for bad fuel, etc.)


Hunting: Can you see if there is a big difference in Comprehensive rates?

The way to do it is to get a bud in the underwriting business at a major firm to pull the rate book.. and see the rating class.

Pick 2 vehicles basically virtual identical, except GM / Ford / Chrysler, then see the rating codes for MBI and Comp.

Also get the Fire and Theft to see if there is an anomaly.




An interesting twist of the law essentially exempts insurers from Federal anti-trust, and leave it to state Anti-trust law, which in practice mean most states have no antitrust protection against the insurers.

http://www.law.cornell.edu/uscode/text/15/6701

Now, on the fuel pump issue, they will be paying out on either the MBI or the Comp.

They will then take the claims... and if it is irregular... subrogate it back to Ford.

Innnnnnteresting.