Is There More To auto insurance Than The Monthly Premium?
Rocky who had just turned 21, was covered under his mother's auto insurance policy with Travelers Insurance. He paid his mother more than $130 per month for the coverage. He was not financing his car, a 1998 Nissan that was given to him as a high school graduation present three years earlier by his parents.
He felt that what he was paying was high for his full coverage policy plus he believed it was time for him to start establishing himself in his own name, create his own accounts, and get his own car insurance.
He did an internet search and soon found a policy with Geico for about $83 per month for the state minimum coverage to drive in the state of FL. This coverage did not included full coverage but he wasn't worried about having the lower coverage as he felt he was a pretty good driver.
His new coverage started the next day which Rocky felt very satisfied in obtaining his own policy separate from his parent's policy. Boy was he wrong.
The weekend after his auto insurance policy went into effect, someone pulled out of a parking lot onto the highway in front of Rocky's vehicle. Rocky slammed on his brakes but was unable to avoid hitting the back of the driver's vehicle in front of him.
Shaken from the impact, he followed the vehicle he hit into a parking lot at a convenience store at the next exit. To Rocky's surprise when he spoke to the other driver, they both felt the other was at fault. They both decided to wait for the authorities to settle the matter.
When the police arrived, the officer took each of the statements and could not determine who was at fault. He ended up saying this is a matter that the car insurance carriers will have to work out. When Rocky heard this he got concerned as he recently reduced all his coverage's to the bare minimum state requirement.
His vehicle was barely drivable, but he made it home okay. When he got inside the house he immediately called Geico to file a claim. Geico told his statement, set up the claim and asked for a copy of his police report. He said what the officer gave him indicated that fault could not be determined. The rep said that the information would be sent to an adjuster.
3 days later, no contact from the adjuster. So Rocky decided he would call Geico to try to find out what is taking place. He had to leave a message but the adjuster contacted him later that day to advise him that nothing will be paid out in the claim since fault could not be determined and he had no collision on his policy.
Rocky had a terrible sinking feeling in his stomach because had he stayed with his Travelers policy, he would have been able to still get his vehicle fixed once his deductible was paid. In addition, the week that this took for Geico to tell him he had no coverage caused all kinds of headaches with him having to get a ride to and from work from his parents. He later found out that his Travelers policy provided 30 dollars a day for a rental.
As the old story goes, you only get what you paid for. It is one thing is you are saving money and not sacrificing your coverage, but in Rocky's case he only saved on his premiums by stripping off all his valuable coverages. Unfortunately a lessoned learned the hard way.
If you want to make sure you have the right car insurance coverages on you policy, give the professionals at Southern insurance Group a call or go to this link for an agent to contact you.
Southern Insurance Group
352-243-9000- Ext 1011