Is Your Policy a Dead End?
After a car accident, the last thing people want to deal with is an awful insurance company. But many clients get left on the road with ironclad terms and unreasonable rates, which is why we’re here to break down a few red flags. Let’s explore how to sift through the bad brokers until you find the best coverage.
1. Poor Customer Service
No one wants to deal with terrible customer service, least of all when they file claims. Rude employees and vague policy agreements can spell trouble for customers. Keep an ear out for how they handle your questions, and take note of their knowledge.
2. They Turn Down Legitimate Claims
Not every fender bender will score a decent payout, but good insurance companies have due process. Bad ones, on the other hand, can turn a blind eye to legitimate problems, leaving you in the lurch and with a hefty bill.
3. Low Claim Payouts
Accepted claims are only half the battle. Bad insurance companies won’t bat an eye about their costs, but they also won’t lift a finger to help clients. If you notice that your policy skimps on coverage, your insurer might be operating in bad faith.
4. Random Rate Spikes
Rates increase for all sorts of reasons, and some fault can lie with the driver. It’s one thing for motorists to experience higher rates after an accident—it’s another to see inexplicable charges on your bill. Pay close attention to the numbers and take note of any spikes.
5. It’s Hard to Cancel or Change Policies
Don’t expect your insurance company to let go easily; most extend some kind of olive branch to retain customers. However, bad brokers make it impossible to switch policies or cancel coverage. Run from any company that makes you jump through hoops to break free.
6. Too Many Delays
Some companies don’t pay well for policies. Others don’t pay out at all. But unlucky customers might just experience a nasty third option: companies that leave you in limbo. Even if they won’t pay, it’s better to have the information than to sit on your hands wondering.
7. You Have to Jump Through Hoops
Oh, your company will pay, alright—if you go through an unruly claims process. The sad truth is that some companies hide behind excessive demands, causing an even bigger headache. Pay attention to their process; most only require basic information and a few answered questions before an estimate.
8. Poor Reviews
Reviews don’t lie. Well, sometimes they do (or they’re left by angry customers), but consistent negativity is cause for concern. If your insurance company only has two or three stars, you might want to shift gears elsewhere.
9. They Don’t Help You
The best insurance companies look out for their clients. In the land of competition, they understand what it takes to make people happy, and that means proactive advice. Brokers should always offer ways to save or introduce you to discounts.
10. Vague Policy Terms
Insurance policies are enough to confuse anyone, and bad companies know it. Between legal jargon and nonsensical requirements, some places have deliberately difficult terms. To make matters worse, they give you the runaround when you have questions.
As crazy as it sounds, not every insurance company is out to squeeze you dry. Let’s explore a few green flags to look out for!
1. Above and Beyond Service
The best companies are available for their clients. That means more than just a phone call—24/7 email or chat support keeps the lines of communication open. It’s always a good sign when your broker is just a few clicks away.
2. Proactive Advice
Would you benefit from a better policy? Could you bundle policies and save money? Are you eligible for a discount? These are the sorts of things great companies answer without being asked. It’s always nice to know your company has your back!
Hyundai Motor Group on Unsplash
3. Understandable Terms
The last thing you want after an accident is to scratch your head at policy terms. Great companies make it easy, and it won’t take until Christmas for them to file your claim. Even if you have any questions, their availability is another indication of their reliability.
4. Quick Payouts
Big or small, accidents can cost a pretty penny. Good insurance companies know that, which is why they have affordable coverage that actually keeps you covered. They won’t keep you waiting for payouts and might even provide additional aid, like towing services or mechanic recommendations.
5. Patience With Questions
For some people, this is their first rodeo. They might be inexperienced drivers or new to the company—and that means questions. The best customer service takes their time to explain everything to you without getting snippy. You’ll also walk away with thorough answers, not vague suggestions.
6. Good Reviews
Everyone’s a little flustered after a collision. Insurance companies, regardless of reputation, are often caught in the crossfire of angry customers. That’s why glowing reviews are such an eye-opener. If your company still manages to come out the other side, you know you’re with a good place.
7. Competitive Rates
Don’t just take your company’s word on rates—look into competitive prices before any final decisions. Having a little know-how beforehand will prevent you from getting fleeced, and it’ll warn you about any disingenuous places.
8. High Financial Strength Rating
Did you know that you can go online to look up your company’s financial strength rating? The higher the letter grade, the better the odds of them meeting contractual obligations. Don’t be afraid to peek at their report cards before hopping into a policy.
9. Flexible Policy Options
Insurance companies should come with their fair share of policy options. Customers shouldn’t feel bogged down by unreasonable terms or locked into terrible rates. Keep an eye out for just how much flexibility your provider offers.
10. Plenty of Discounts
Discounts aren’t guaranteed, but they’re nice to have. Great companies knock down the price for a bunch of reasons: clean driving records, bundling policies, and going paperless can all score a discount. What’s more, your provider should tell you about your eligibility!
