You already know the auto insurance companies that brag about their low premiums on national television, radio, and social media. They really want you to internalize their messages.
However, the truth of the matter is that there may be a misconception about what they mean.
“Replace your current coverage with ours,” they proclaim, “and you will find savings on your auto insurance!” Or “Allow us ten minutes and we will present you with a cheaper rate than others.”
The facts are that most vehicle drivers will not get any savings from a policy change to a direct insurance company. This is because no dependent company has the means to offer coverage other than its own. The glow of a cheap quote may actually be the mask that covers a higher insurance deductible and lower liability coverage.
To underline this important lesson, we bring you this true narrative involving someone who decided to go with the ability of an independent agency to locate custom auto insurance for him.
A motorist who had previously been insured through one of these highly publicized dependent companies promoting ‘cheaper rates’ decided to opt for an independent agency known for its impeccable customer service.
After a review of this man’s ‘cheap’ car policy, the insurance specialist discovered some serious gaps in coverage. Realizing that this could cause serious problems if the insured is ever involved in a car accident, he got down to business and examined the many policies offered through his company’s provider network. She pointed out an excellent plan that filled in the gaps and had a competitive low rate attached.
The client was satisfied with the finding and left with new peace of mind due to his newly acquired policy.
As fate would have it, it was not long after this insured was involved in a car accident that left his vehicle in total condition. Because the other driver was at fault in this collision, it was assumed that the other driver’s insurance company would pay for the damages.
But there was a major drawback to this. The other insurance company offered to pay an amount well below the total value of the car.
That’s when the new insured whose car had been wrecked decided to call his new company. The insurance company gave him no hassles or problems. Instead, they sent him a check for the amount that actually represented the value of his car – three thousand dollars more than the at-fault driver’s insurance company was offering!
Guaranteed: The happy ending to this realistic story would have been very different if there had been that ‘cheap premium’ policy with gaps in coverage.
Now, be the judge, is that ‘cheap’ policy really ‘cheap’?