Atlantic Mutual Offers Drivers Questions to Ask About Auto Coverage and
Claims Service
NEW YORK, March 9 /PRNewswire/ -- With a few insurance companies heavily
advertising low prices and the ability to get quotes over the Internet, many
people have become more price-conscious when purchasing auto insurance. But
choosing the lowest price could end up costing consumers a lot more if they
have an accident, especially if they own a high-end auto, warns Atlantic
Mutual.
"We are seeing a growing tendency among consumers to view auto insurance
as a commodity product," said Dan Olmsted, president of Atlantic Mutual. "This
is a dangerous misconception because coverage terms and limits and service
quality can vary greatly among companies."
Atlantic Mutual is offering a free list of questions to ask when obtaining
auto insurance quotes. Available at http://www.atlanticmutual.com, the
questions will help consumers understand the quality of coverage and service
being offered. Four of the most important questions are:
Will the insurance cover replacement parts from the original manufacturer?
Some low-price auto policies will only pay for "generic" auto parts from
third-party manufacturers. The quality of these parts may differ from the
originals. The discrepancy can be of particular concern to owners of luxury or
high-performance autos. Policies designed more for the affluent customer will
pay for parts produced by the original manufacturer, also called "OEM" parts.
How much will I be reimbursed if my car is "totaled?"
Even if your 7-year old Lexus looks and runs like new, standard policies
sold at the lowest rates can take thousands out of your reimbursement by
applying the most aggressive form of depreciation. Replacing your car -- even
with another used one -- could seriously dent your wallet. Ask about adding an
"agreed value" clause to your policy. This feature enables you to establish
the value of your auto with your insurance company before it becomes a total
loss, so you avoid an unpleasant surprise.
Will the cost of renting a comparable car be covered?
Even if you're used to ferrying the kids to school or commuting in a large
sport-utility vehicle, low-price insurance policies may come with per-day and
total spending limits that barely pay for briefly renting an economy car.
Repairing or replacing your auto could take weeks, so be sure to consider
policies with limits that will allow you to rent a comparable car for an
extended period.
What quality of claims service can I expect?
Even companies selling low-price policies promise to deliver excellent
claims service, so it's best to seek a second opinion apart from the company's
website or advertising. Ask an independent agent which company has the best
claims service. Or, check with your state's insurance department. Some states
(such as New York and New Jersey) provide information about the number of
legitimate complaints lodged against auto insurance companies.
"It seems so easy to compare by price, but insurance consumers need to dig
into the more complex coverage issues too," said Olmsted. "Insurance is an
important financial service, and like any service or product, you get what you
pay for."
"That's why we recommend working with an independent agent," continued
Olmsted. "Representing multiple companies, the independent agent has the
expertise to discuss coverage and service as well as price and make sure
consumers select the company that best meets their needs." Consumers can find
a list of agents representing Atlantic Mutual at
http://www.atlanticmutual.com.
About Atlantic Mutual
Atlantic Mutual offers property-casualty insurance products for
individuals with substantial assets to protect. The Atlantic Mutual Insurance
Co., formed in 1842, is a mutual insurance company owned by its policyholders.
Its products are sold through independent agents. Additional information about
Atlantic Mutual can be found at http://www.atlanticmutual.com.
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