Why is price not the only consideration on auto insurance?

By Laura Sherman, CAPI, CPRM | Founding Partner

Families and individuals have many options when choosing an auto insurance company. It seems like every other TV commercial presents a different company jockeying for our business by stating how much—and how quickly—we’ll save by switching to them. But not all insurance is created equal.

Although price is important, the coverages, the insurer and the value you receive for that price are equally important considerations. If you think of yourself as a value shopper you may want to tread lightly when it comes to auto insurance. Do not fall victim to the price war and assume that an agent has included the best coverages. If there is a small price difference, it is more than recaptured in the event of an accident or claim.

Some benefits of placing your auto insurance with a high net worth insurer include:

When you are not at fault, whose auto insurance should pay? When someone is involved in an auto accident, the first question is often, “When will I get my car back?” Those insured by a high net worth insurer should file the claim with their own insurance company even if they are not at fault. The other party in the accident may have coverage through a standard company, which will not provide the benefits of a high net worth insurer such as OEM parts, choice of repair shop, etc. In many cases, these insurers are slow to accept responsibility for the accident and claims may take months.

Even if you’re not at fault, the other driver may still claim you were and file a claim or lawsuit against you. Having already filed the claim under your own policy helps prevent these false claims being paid.

What should you do after an accident? We suggest following these steps to ensure peace of mind and a streamlined process with your insurance company. Even seemingly minor accidents may turn into major payouts without witnesses or the proper information.

Related Articles