Complaints

This profile includes complaints for Merchants Insurance Group's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Merchants Insurance Group

  250 Main Street PO Box 903 Buffalo, NY 14202

• 

  Merchants Insurance Group

  1767-22 Veterans Highway Central Islip, NY 11722

• 

  Merchants Insurance Group

  P O Box 903 Buffalo, NY 14240-0903

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:08/07/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My truck was involved in an accident and my truck was totaled by merchants insurance. The total value was quoted at 33,758.00.
  I had a lease to purchase agreement with ****** ****** **** *******. Merchants contacted ****** ******* for the remaining payoff amount which was approximately 11,000. I am due the remainder and the check has not been issued to me and they are refusing to pay me the remainder of the accident quote to purchase a replacement vehicle. Please help me to resolve this asap because I am trying to purchase another vehicle.

  Business Response

  Date: 08/14/2024

  This loss was reported to Merchants on 7/18/24. The
  complainant’s vehicle was inspected and determined to be a total loss. The
  letter of guarantee was received by us on 7/19/24 in the amount of $11,
  787.00.  We issued payment to the lessor that same day. As the vehicle was
  a leased vehicle, it appeared the complainant had no insurable interest in the
  vehicle therefore no payment would be made to them. On 8/7/24 the complainant
  sent to us a lease agreement outlining that it was a lease to own contract,
  which in this case, showed the complainant to have equity in the vehicle. On
  8/8/24 we notified the complainant via email then subsequently sent an
  additional payment in the amount of $20, 971.39. We believe we have reached a satisfactory resolution of
  the issue with the consumer, and the matter in dispute is now concluded.

• Initial Complaint

  Date:07/15/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Unsatisfactory Settlement/Offer
  Details Of Complaint: Insurer habitually delays answering claim in regard to pertinent communications
  (including supervisors, department executives, company executives), insurer habitually deflects or
  refuses to answer inquiries regarding formula used, insurer has not followed proper guidelines to resolve
  claim ie: using more than one commissioner approved resource, insurer devaluing loss vehicle value
  beyond what a fair and reasonable individual would expect to receive for total loss, insurer refuses to
  appoint new adjuster after clear and concise grievances with current adjuster are brought to the attention
  of multiple departments in multiple districts, insurer does not follow own company policies, insurer does
  not use substantially similar vehicles to use in comparison, insurer paints insured in negative light within
  company thus limiting the insured to be treated fairly, insurer does not communicate within guidelines set
  forth in adminastrative code for every 30 days nor does insurer clearly explain the issues in letter, no
  letter so far at 65 days later after claim opened, insurer does not make information available to insured in
  online claim file (even contact to insured still says Pending which is obviously incorrect).
  Notable reasons for complaint from section above that apply;
  Agent Handling
  Claim Delay
  Claim denial of certain coverages
  Delays/No Response
  Information Requested, not received, deflected, not acknowledged.
  Misrepresentation of policy coverages
  UNSATISFACTORY SETTLEMENT/OFFER (NOT ACCEPTED, but currently under duress by insurer
  now that I have made 2 additional payments towards total loss vehicle, a 2nd quarterly payment towards
  policy premium, multiple thousands in expenses to operate business normally.)

  Business Response

  Date: 08/04/2023

  Thank you for your letter dated 8/2/23 regarding the above captioned complaint. This complaint involves a dispute between the customer and our Claim Representative regarding the value of his 2018 vehicle after it was deemed a total loss in a one vehicle accident on 4/24/23. I have recently responded to three different insurance regulators about this claim. This is a New Jersey claim that is currently being handled by a New Jersey Claim Representative in my office who has been nothing but professional and fair in her efforts with this customer to come to an amicable settlement. Our representative has made several offers to resolve this matter but after each offer the customer keeps going up in his demand, rather than coming down. At this point we believe we have been extremely fair with our last offer to the point that our offer actually exceeds what the customer paid for this vehicle back in December of 2022. We stand by our last offer to this customer and we are currently awaiting acceptance so we can pay thisclaim. If you have any questions please do not hesitate to contact me. I may be reached a* ************ **** 
  ***** Sincerely, William F. W**** Regional Claims Manager Midlantic Regional Office 

  Customer Answer

  Date: 08/04/2023

  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below. 
  
  When considering what the regulatory administrative code the business must abide by when operating in their capacity, what I paid for the vehicle has no bearing upon what the vehicle is worth. According to the official administrative code in accordance with New Jersey, the offer made to me must be one that reflects my position in a retail capacity and the business has now just provided full admittance of violating DOBI regulations.  Additionally, respondent for the business is the supervisor of the Claims Handler and this is the FIRST and ONLY communication he has presented himself on regarding my claim after my repeated attempts to contact him directly. I refute that the agent has handled herself in a professional manner as it is clear and concise she has taken direction from her supervisor to offer me less than what I am entitled to LEGALLY. 
  Regards, 
  
  **** *********

• Initial Complaint

  Date:02/08/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  It is an accident claim that has not been settled fully by merchant Insurance group. The claim # is ************ The assessing agent is Jeremie c***. The accident happened on 11/2/2022. my vehicle was totaled. merchant accepted liability on 11/18/2022. they paid an amount less an amount of $335 for salvage. to date merchant has failed to pay the tow truck Company so they can release the salvaged vehicle. It is passed a reasonable time for this case to be closed. i have exhausted every effort to have them pay the tow garage. the Salvage is with ***** **** ***** **** * *************

  Business Response

  Date: 02/13/2023

  This loss was reported to Merchants on 11/8/22. After
  investigation, we accepted liability for the loss. The complainant’s vehicle
  was inspected and determined to be a total loss. It is a 2001 **** ******** in
  poor condition. The original market value was determined to be $599.01. The
  complainant advised that he had recently had a new engine installed but had no
  receipts to support that claim. In an effort to resolve the claim we increased
  the condition assessment to good which resulted in a market value of $1,286.69.
  The complainant was retaining the salvage so  the salvage value was
  deducted in the amount of $335. We reimbursed his rental costs. The shop that
  towed and was storing his vehicle was charging excessive storage ($100 per day)
  and uncovered administrative charges. Merchants attempted to negotiate the
  charges but the shop refused. We advised what we were willing to pay, a total
  of $1,760, which was more than reasonable. We advised Mr. ********** that as
  owner of the vehicle he was responsible to negotiate and or pay the charges and
  he could submit the paid invoice to us for reimbursement consideration. He has
  never submitted a reimbursement request. He has the responsibility to mitigate
  the loss and we have agreed to reimburse him $1,760 upon receipt of a paid
  invoice for at least that amount.

  Customer Answer

  Date: 02/23/2023

  Better Business Bureau: 
  
  I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below. I have just become aware of this mail from you. I had been waiting for your response but did not check my mail until now.  I read the statement by Merchant Group and I disagree that I should be brought into a price dispute between the two garage and Merchant. That is their job. The salvage should not be a pawn between them and I am not Merchant is totally liable for whatever the cost of the accident on behalf of their client. I remain unsatisfied with the transaction. Merchant is asking me to negotiate on their behalf. I do not work for Merchant Group. 
  
  Regards, 
  
  ******* **********

  Business Response

  Date: 02/23/2023

  The file supervisor called the complainant and spoke to him for over 40 minutes trying to explain the process and reasons why he, as the owner of the vehicle, is responsible for the charges incurred to have his vehicle towed and stored and that he has a duty to mitigate his loss. Merchants has accepted liability for the loss but are only responsible to reimburse reasonable costs that our insured may be legally liable for. We have offered to reimburse reasonable costs once proof of payment has been submitted. He indicated that he would retain an attorney. If and when he does, we will deal with his representative to attempt to amicably resolve the matter since we have been unable to convince him of our legal obligations.    

• Initial Complaint

  Date:11/30/2022

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My car windshield was damaged by a landscaping company and this is the company they provided to the police for their insurance. This incident was reported by the landscapers to this insurance company on 10/6/2022 and it took two weeks to get someone to return my calls about the details or status of the claim. After going through all the motions with this company, they have refused to correspond with me in regards to my settlement that they claimed was being processed at the beginning of November. It’s now 11/30 almost 2 full months since the date of loss and still nothing. Nobody answers the phones there, the claim agents do not return calls or respond to emails and there is no way to escalate beyond the office or direct claim agent so the BBB is my only hope. The fault was already admitted and the settlement was supposed to be sent. I’ve been driving around in a car with a fully cracked windshield because this matter has not been attended to, it’s literally a danger to myself and my family and I don’t believe it’s being handled or even taken seriously. Please help.

  Business Response

  Date: 12/12/2022

  Please allow this letter to serve as a response to your recent inquiry regarding the above captioned complaint. The complainant did not provide any information regarding our alleged insured, a claim number or even a date of loss. A police report was referred to in the complaint but not provided. We were eventually able to locate the claim as listed above. This claim was originally repported to Merchants on 10/5/22. The insured indicated that a weed whacker kicked up a stone that damaged the claimant’s windshield. The insured originally tried to handle it himself out of pocket but the estimate was much higher than he anticipated so he reported it to Merchants. The claimant was called on 10/10/22 and a message was left. A second call was made to the claimant on 10/20/22. That call was returned later that day and the claimant advised that she would send in an estimate. An estimate in the amount of $2,797.16 was received and a release sent for that amount on 10/20/22. The release was not returned until 11/14/22 and payment was made that day. The claimant called on 11/30/22 indicating that the check had not been received. A stop payment was issued on the first check and a new one issued that same day. The loss was reported late to Merchants and then the claimant did not return our calls timely. When contact was made and a release was sent it took her over 3 weeks to return it. Payment was made immediately that same day. The first check was not received so a new one was issued. Our file is closed as payment has been made. Sincerely, Jonathan E. P****** CPCU, SCLA, AIM Claim Manager Merchants Insurance Group ###-###-####