Aig

[baltimoremm]

I have AIG for the marauder and the wife's car. I dont know a whole lot about financial markets and all this business going on with AIG. I'm just wondering, should I start shopping around for other insurance when my renewal comes up?
I've had no complaints with them so far, and I know that even with their problems, they would still be able to pay claims because auto insurance is just one part of their huge business. I'm just worried that they will lay off a ton of people and then no one will be there to help if i need it. thoughts?

[Cheeseheadbob]

Good old Uncle Sam is kicking in $85,000,000,000, that's right folks, 85 BILLION dollars to keep this monolith afloat. They will still be able to collect your premiums early and often....

[O's Fan Rich]

I'm a little short right now... wonder if my Uncle will give me just 1% of that total to help me out? Oh... and I don't want to have to repay it.

[Go Mifuni]

We're all a little short, but guess who's footing that bill?

[BruteForce]

Actually they loaned them that $$ at 11% for 24 months in exchange for an 80% stake in the company. Congrats, we taxpayers now own an insurance company. I wonder if we'll get any dividends? :rolleyes:

[Bluerauder]

Actually they loaned them that $$ at 11% for 24 months in exchange for an 80% stake in the company. Congrats, we taxpayers now own an insurance company. I wonder if we'll get any dividends? :rolleyes:
And the alternative was ..... WHAT?? Let AIG go down the tank and take the rest of the economy with it? :(

[BruteForce]

And the alternative was ..... WHAT?? Let AIG go down the tank and take the rest of the economy with it? :(

I don't know that there was any other alternative at this point. But its a bad sign when no one else other than the Feds are willing to step up to the plate to prop them up. You've got to wonder how sound the philosophy is of "deregulated free markets" when those markets are willing to take the profits in the good times but back away from absorbing the losses in the bad.

Deregulated free market philosophy boils down to "privatize profits and socialize risk". Who gets the short end? You and me.

PS. Are any of the CEOs for these failing institutions going to give back their millions in salary and benefits for allowing them to get into their current mess? I read somewhere that the heads of Freddie and Fannie are still on course to get huge severance packages even though they screwed the pooch. Something wrong there.

[wishfulthinkin]

The scary thing about Freddie & Fannie is with the Gov. help, they (Gov.)now own your
mortgage (that's not a comfortable thought for those with a mortgage). The fault really lies on the shoulders of those who bought more house then they could actually
afford. Not to mention wall street speculators. In the past (80's) the market will
re adjust itself in the long run. You just have to wait it out, and not panic. Never
get above your means is the safe way to stay, not to mention investments.

[duhtroll]

Funny how those who complain about too much government involvement are also those that are willing to accept the handouts when it's their company that tanks.

I'm OK with the market submarining for right now. Just think of how cheap the shares are! It can peak at record highs again right before I retire. :D

[Green96]

To answer the original question about should you shop around...maybe. If a person had their homeowners with AIG and a umbrella policy on top of that, the umbrella policy may have requirements concerning the underlying (AIG) companies financial rating. If AIG's financial rating drops too low (it has obviously already dropped some) the umbrella policy may not cover anything unless you change to a different company for your homeowners. I do not know if any of this has any ramifications for auto policies. My wife is an insurance assistant/lisensed agent for the president of a local ageny so I only sound like I know what I am talking about. I have no actual insurance experience, but I did stay at a Holiday Inn Express once (but it didn't help my spelling).