Celaunds.com

Tech which makes Sense

Meet the auto insurance companies boasting about their low premiums on national TV, radio, and on 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’ll find savings on your auto insurance!” Or “Give us ten minutes and we’ll come up with a cheaper rate than others.”

The actual facts indicate that most vehicle drivers will not realize any savings by switching to a direct insurance company. This is because no dependent company has the means to offer coverage other than its own. The gloss of a cheap quote can actually be the mask that covers a higher insurance deductible and less liability coverage.

To underscore this important lesson, we bring you this true story involving someone who decided to go with the ability of an independent agency to find custom auto insurance for him.

A motorist who had previously been insured through one of these highly publicized dependent companies touting ‘cheapest rates’ decided to go with an independent agency known for impeccable customer service.

Following a review of this man’s ‘inexpensive’ auto 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 went to work, reviewing the many policies offered through his company’s network of providers. She identified an excellent plan that filled the gaps and had a competitive low rate attached to it.

The client was pleased with the find and left with a new peace of mind due to his newly purchased policy.

By chance, 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 full value of the car.

That’s when the new policyholder whose car had been totaled decided to call his new company. The insurance company didn’t bother him or trouble him. Instead, they sent him a check for the amount that actually represented the value of his car, three thousand dollars above what the at-fault driver’s insurance company was offering!

Guaranteed: the happy ending to this true story would have been much different if that ‘cheap premium’ policy with gaps in coverage had been in place.

Now, you be the judge, is that ‘cheap’ policy really ‘cheap’?

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