It’s Time to Review Your Insurance
The time to review your insurance is now – before an accident. This clearly isn’t a popular message, but it’s an important one. No one wants to think about getting into an accident. And they’re hard to plan for. That’s why we call them, accidents. And you might think, “I pay my premiums… I’m covered”… but chances are you’re not as protected as you think you are. And in this case, what you don’t know… CAN HURT YOU.
According to investopedia.com, insurance polices serve as a hedge against financial losses that may result from damage to the insured, their property or liability of damage or injury to a third party. And while this is an accurate description, most people are unpleasantly surprised when their insurance company refuses to pay the full amount of a proper repair.
Let’s take a closer look at some common areas where insurance companies cut corners and leave their insured stuck paying the bills.
- Your vehicle is in the shop, and you need a rental car to get to work. This happens all the time, and someone has to pay for the expense of the rental car. If your insurance policy doesn’t include a rental car rider – YOU will be the one footing that expense. Adding rental car coverage typically costs an additional $2-15/month, depending upon the level of coverage you purchase. Far less expensive than having to pay out of pocket for essential transportation.
- Imagine your insurance company insisting that they will only pay for counterfeit parts to repair your brand new vehicle. These parts offer no safety test documentation, and by their very definition, are NOT the same as original equipment manufacturer’s (OEM) parts. While that may be simply unthinkable to you, it happens every single day.
An article posted on NCConsumer.org stated this: “Aftermarket parts might not fit as perfectly as the original, but they might be good enough for you”. Does that shock you? It should!
Some insurance providers offer an OEM rider, but if you don’t specifically ask for it to be added to your policy, chances are good that you don’t have it. The OEM rider simply states that you may request (and the insurer must pay for) original OEM parts for your vehicle repair.
Insurance companies spend hundreds of millions of your premium dollars every year on marketing directed at emotionally getting you to choose their services. Phrases like, ‘the good hands people’, or ‘like a good neighbor’ are designed to make you feel like they genuinely care about you.
In reality, they only genuinely care about their profit margins, which can range into the billions of dollars annually. If they really cared about you, why would they refuse to pay for the proper repairs to your vehicle? Why would they make you pay the difference – sometimes totaling several thousand dollars – out of your own pocket?
The Cheapest Policy Can Hurt You
When you review your insurance policies, consider also reviewing your insurer. All too often, people shop for insurance based upon whichever company can offer them the lowest premiums. But think about that for a moment. When you cut costs in your insurance, it typically translates directly to them cutting costs when you need them the most.
Saving 15% in 15 minutes or less may just end up costing you thousands of dollars when you need help the most. Your safety, and the safety of your loved ones depends upon your vehicle being repaired properly back to it’s pre-loss state. Be an informed consumer, and make sure that your insurance policies truly reflect what you expect to happen should you get into an accident.
If you have any questions about how your insurance company interacts with collision repair shops, please don’t hesitate to contact us. We’ll tell you the truth, and you can make an educated decision.