Southern Insurance Associates
by AJaye Brown on Oct 23, 2014
A boomerang kid lost his job and moved back home with his parents. While driving his mother’s car, he negligently struck another vehicle, causing several thousand dollars in property damage. The mother’s insurer denied the claim on the basis that the driver’s residency was not reported to the carrier within 30 days of his return home.
15 minutes can save you 15%, anyone?
The boomerang claim denial arose from an exclusion in the insurer’s policy for accidents involving undisclosed household residents, unless the insurer had been notified within 30 days of the residency. What insured would think to report something like this to his or her auto insurer? If an “ISO-standard” policy had been in place, they wouldn’t have to.
At a rapidly accelerating rate via TV advertising, online “ease of use” promotion and proliferating media articles, consumers are being duped into believing that personal lines insurance is a commodity, with the only significant difference being price. Nothing could be further from the truth. While a lower price doesn’t necessarily imply lesser coverage, that is often the case.
In the words of sales legend Morty Seinfeld, “Cheap fabric and dim lighting. That’s how you move merchandise.”
The Myth Perpetuates
The typical “How to Save Money on Car Insurance” article cautions consumers to make sure they compare “apples to apples.” Translation: Make sure you’re getting premium quotes for the same liability, uninsured motorist and medical payments limits and the same physical damage deductibles. It’s as if broad coverage categories, limits and deductibles were the only differences between auto insurance policies.
A Wall Street Journal article, “Car Insurance Rate Shopping Can Pay Off,” says, “The Consumer Federation recommends consumers shop around to get quotes from insurers that don’t use agents, such as Amica Mutual Insurance and USAA (for families with military ties), and then ask an agent to beat the best price.” Not a word about any coverage differences—only the price. How sad…
The Real Story
The differences between auto insurance policies are many, varied and potentially catastrophic. As insurance educator John Eubank, CPCU, ARM, says, “The bitterness of no coverage is remembered long after the sweetness of low price has been forgotten.”
Sadly the marketing focus with these companies is the all-consuming focus on price alone and now the erroneous premise that personal lines insurance has become a commodity, simply because someone says it is and people believe it.
It’s time for independent agents to dispel this destructive myth. This is about preventing catastrophic loss to innocent people who are sold a bill of goods via cute advertising of increasingly stripped-down insurance products that enable low pricing.
SIDEBAR: Don’t Judge a Book…
Here are a dozen auto insurance exclusions or limitations you won’t find in the “ISO-standard” personal auto policy.
I couldn't sleep at night if I didn't feel as though I did a thorough review of your insurance, went over coverages and felt I truly had you covered at level you were comfortable with and at the best price we could find. That's our job"-AJaye Brown-Owner of Southern Insurance Associates, LLC
Don't be duped or mislead. Contact Southern Insurance Associates at 706-996-8788 or Info [at] southerninsuranceassociates [dot] com for a real review of your current insurance with options of companies and coverages at a price you can afford. It's insurance that fits.
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La Fayette, GA 30728
7579 Nashville Street
Ringgold, Georgia 30736
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