Why the Dependent Company's Cheap Insurance May Not Be Cheaper

 

You've heard of auto insurance companies brag about their low premiums on national television, radio, and social media. They genuinely want you to internalise their messages.

The truth is that there may be a misunderstanding about what they mean.

"Replace your current coverage with ours," they claim, "and you'll save money on your auto insurance!" "Allow us ten minutes, and we will present you with a lower rate than others."

The facts show that most vehicle drivers will not save money by switching to a direct insurance company. This is because no dependent company has the resources to provide coverage other than their own. The glimmer of a low quote may actually be a mask for a higher insurance deductible and less liability coverage.

To emphasise this important lesson, we present an actual story about someone who decided to go with an independent agency's ability to find tailored car insurance for him.

A driver who had previously been insured by one of these highly advertised dependent companies that promote 'cheaper rates' decided to go with an independent agency known for their exceptional customer service.

The insurance specialist discovered some serious gaps in coverage after reviewing this man's 'cheap' auto policy. She went to work, looking through the many policies offered through her company's network of providers, knowing that this could cause serious problems if the insured was ever involved in a car accident. She identified an excellent plan that filled in the gaps and came with a competitive low rate.

The customer was pleased with the discovery and left with a renewed sense of security as a result of his new policy.

As fate would have it, not long after, this insured was involved in a car accident that resulted in his vehicle being totaled. Because the other driver was at fault in this collision, it was assumed that the damages would be covered by the other driver's insurance company.

But there was one major stumbling block. The other insurance company offered a settlement far below the value of the totaled car.

The new policyholder, whose car had been totaled, decided to call his new company at that point. He had no issues with the insurance company. Instead, they mailed him a check for the true value of his car, which was three thousand dollars more than what the at-fault driver's insurance company offered!

Guaranteed: if that 'low-cost' policy with gaps in coverage had been in place, the happy ending to this true-life story would have been very different.

Now you decide: is that 'cheap' policy truly 'cheap'?

Author: RabnawazToor