As the saying goes, "You get what you pay for."…read more
Aileen has been my insurance agent since she opened her business decades ago. The service that she and her knowledgeable staff provides is excellent and shouldn't be taken for granted. Expert experience matters.
A recent tragic event involving a neighbor underlines that saying, "you get what you pay for". Just because you've been driving for years or own a car, doesn't mean you've acquired any meaningful knowledge of insurance coverages. Not all auto insurance policies are the same. Nor, is the level of service you'll receive when you need it most (after filing a claim). They're like comparing apples to oranges.
He didn't understand what COMP, COLL, Med Pay, LoU (Rental Covg.), UMBI, UMPD were for or the dangers of buying "minimal State liability limits" (15/30/5). What are 1st party coverages vs. 3rd party coverages? Do "deductibles" apply to liability coverages? He didn't have the benefit of a licensed, experienced insurance agent counseling him. He tried to figure things out on his own and/or relied on unreliable advice. He bought insurance online. From hindsight, he recognizes he made a Big Mistake.
Ever hear someone use this "buzz word", saying they've got "Full Coverage"? Well, that's someone who doesn't know what they're talking about. There's no such thing as "full coverage". Ask your "so called expert" what does that mean? They sell insurance for many things, but not everything. Plus, there are "exclusions" written in every insurance policy. (You know, that contract your expert never bothered to read, cover to cover.)
Like most people, he shopped for insurance based on "price". He didn't realize that criteria alone was not enough. Buying the "cheapest" is like getting an umbrella made out of paper, which offers little protection when you need it. So now, he's a got a useless, totaled vehicle sitting on his driveway (had no COLL); has no temporary substitute vehicle, aka "rental car" to get to work (since his LoU coverage applies only to COMP, and doesn't apply to his solo vehicle collision); had no Med Pay to help pay for medical expenses (ambulance, emergency hospitalization, and recovery treatment) for himself and his passenger; and he'll probably get sued by his "negligent-free passenger".
A belated "wake-up call" resulted from this auto accident. The current, average cost of a new vehicle is about $47k to replace and/or the cost to repair minimal property damage to another person's vehicle (plus, the additional expense of a similar rental vehicle, while it's in the body shop) can be thousands of dollars. Imagine if you're liable for a multi-vehicle collision. Having only $5k of Liability coverage for Property Damage is grossly inadequate.
Learn from other people's mistake and not your own!
Buy insurance from a reputable insurance agent.
