subject: Car Insurance - 2 Things To Be Aware Of When You Buy Insurance [print this page] Car Insurance - 2 Things To Be Aware Of When You Buy Insurance
If you're like me, you'd love to reduce your auto insurance premiums yet not reduce the protection you get. But do you have insurance agents as friends? I have two. Recently, having done some online research, I came up with some interesting findings and ran them by my insurance friends.
This is what I talked with my insurance friends about:
a. retain the right to sue
b. don't sign contracts that include the words 'aftermarket parts' or similar ones.
Let me go into a bit of detail on these two, as they have important consequences for you, the auto insurance buyer.
Retain the right to sue
According to some car insurance advisory sites you should always retain your right to sue your insurer. The reason? If you do not you're making easier for your insurer to take advantage of you.
This is what happens. If you give up the right to sue and there's a disagreement, you and your insurer go to arbitration. If you retain the right to sue, you can, of course, get a lawyer and sue.
Lawyers charge a lot more than arbitration people do. So insurance companies have additional incentives to follow the contract the two of you signed, to settle.
One of my insurance agent friend's idea about retaining the right to sue? "It's true, but it doesn't really work that way. People get favorable results from arbitration."
I'm not saying arbitration doesn't ever work. Just that it's better if you retain the right to sue.
Aftermarket parts
If your car is damaged and you have the right insurance, the insurance company pays for repairs, including parts. Car parts made by companies other than the car maker are called "aftermarket parts."
Originally, it seems, aftermarket parts were always inferior in condition, craftsmanship, and they were not as extensively tested. Now, some are as good as or better than the parts made by car makers. But, But perception has not changed, people still think them inferior. Which means that if your car has aftermarket parts, it's going to be perceived as being less valuable, you'd have to sell it for less than if it had original car maker parts.
I talked about aftermarket parts with one of the insurance agent friends I have. He said it's not true. Because, unless your car is one or two years old, almost everybody uses aftermarket parts. Which proves my point, not his. And my point is that there are auto insurance companies that do not use aftermarket parts.
My insurance agent friends tell me that if you cross out language from the policy, all insurance companies will not do business with you. Which maybe a good reason for you to find yourself another insurer.
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