With the popularity of online insurance shopping more and more consumers are not talking to an agent before making life altering insurance decisions.
For example, we recently had a client go online and start a whole new policy for a car she was buying. Why was this incorrect? Well, she could have added the new car to her existing policy and not paid the first month payment for a new policy as well as making two payments a month instead of one. She could have qualified for a multi-car discount and she could have matched her current coverage. All with one phone call to her agent.
Another common error we see is when someone decides to sell their only vehicle and they cancel their insurance. Why is this incorrect? One of the rating factors for auto insurance is the length of time that you have had continuous coverage. If you stop and start policies with gaps you don’t have continuous insurance history. This will cost you real dollars. Sometimes it can double the rate for a new policy. And you don’t have to own a car to have auto insurance. You can carry a “Named Non-Owned” policy which provides liability insurance for driving other people’s cars. It’s not expensive and it preserves your insurance history for when you do buy a car.
Another example that we recently saw was when a client quoted his own insurance online but in the course of filling out the form he did not mention that two cars are kept in Nevada and another in Washington. Car insurance is valid for your cars where they are garaged and registered. So, if you have Nevada insurance but your car is parked and registered in Washington the insurance may not be valid. Every state has its own unique insurance regulations and requirements. This holds true for when you move to a new state as well.
In general you have 30 days to change your insurance to the state you’ve moved to, register your car there and get a new license. Otherwise if you have an accident the insurance company may or may not honor the claim because you are in breach of contract. You don’t live where the insurance is valid.
The bottom line is that agents are trained, educated and licensed for a reason. They know the laws and regulations and they understand the consequences of not abiding by these laws. Agents have your best interest in mind. Ethics is one of the major cornerstones of an insurance agent’s responsibilities. We are all required to do Continuing Education including Ethics to maintain our licenses.
So, before you fire up your computer to get a cheap rate, call us. We are happy to help.
Contributed by Victoria Sutherland, Licensed Insurance Agent