Auto Owners Insurance Details: Auto insurance policies frequently fluctuate in their quality based on seemingly inconsequential caveats and clauses buried deep in the fine print. Before agreeing to a contract for auto owners’ insurance, you can consult with your insurance agent and make sure the same answers are provided in the actual policy.
Is this a “named-insured-only” or “family policy”?
While “named-insured-only” policies only cover drivers who are specifically named on the policy, family policies cover all drivers living in the home as well as anyone they lend their vehicles to. Family plans will be the best option if anyone other than the policyholder ever drives the car, but they will likely cost 10% to 15% more (or even more, depending on various criteria, such as the driving records of any other drivers). Many car owners don’t even realize they have named-insured-only plans, and they lend their automobiles to friends and family without thinking about the possibility that they could not have insurance in the event of an accident.
Does this policy give me the freedom to select my own repair shops and original equipment manufacturer (OEM) components?
Some auto insurance policies have been rewritten by a number of insurance companies, including Geico, Nationwide, and Progressive, to restrict the options available to owners of damaged vehicles for repairs after collisions. The vehicle’s warranty might be voided if aftermarket parts, or components not made by the vehicle’s manufacturer, are used in it. As an illustration The radiator in your car needs to be replaced after an accident. Your engine locks up a year later. Because of the aftermarket radiator, the dealership is most likely not going to honor your warranty.
Does this insurance policy have an appraisal clause?
This provision enables the policyholder to get an appraisal if the insurance company offers less for a totaled car than the policyholder believes it is worth. Additionally, inquire if a “court of jurisdiction” may appoint a third party under this appraisal clause. If the policyholder’s and insurance company’s appraisers are unable to agree on an umpire using this procedure, either appraiser may request the appointment of an umpire by a court of competent jurisdiction to break the impasse. Be cautioned if the answer to either of the questions is no. If your insurance provider claims that your car isn’t worth what it’s listed in the Kelley Blue Book or NADA (National Automobile Dealers Association) Guide, you might not have much recourse.
Does the phrase “as defined by us” appear in the contract’s “Limits of Liability” section?
This particular clause in your auto insurance policy establishes restrictions on how much the insurer will cover. The clause might specify that the insurer can only spend “no more than the prevailing hourly labor rate of repair shops within the region” or “no more than a competitive estimate of repair expenses.”
Unfortunately, some insurers have started adding the phrase “as specified by us” at the end of some contracts’ limitation restrictions, thereby giving the insurance company the authority to demand lower-than-market repair prices. Their policyholders must either take their car to the insurer’s “authorized” repair facility, which is willing to make the necessary fixes at that bargain price, or take the car to a better facility and pay the price difference up front.
Where to Find The Best Insurance Provider
While some insurance companies sincerely try to protect their clients’ interests, others focus only on their own bottom lines. Smart ways to distinguish between the two
Check the severity of the issues that customers are experiencing. Ask which insurers receive the fewest consumer complaints when you call the insurance department in your state.
Check the client satisfaction levels. The business research company JD Power and Associates conducts its own annual assessment of customer satisfaction with auto insurance. Visit http://www.jdpower.com/autos/ratings/autos-insurance to view its most recent ratings.
Ask the owners or managers of the body business for recommendations. Find out which insurance companies treat their clients well and which cut corners on repairs.
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