Have You Read Your Insurance Policy Lately?
January 15, 2016

Here, let us help you with a quick lesson –

The differences between what your insurance company promises you within their TV, radio, and magazine ads and what you actually receive are important to know. The advertisements we witness are nothing more than propaganda. We have provided you with segments from the actual auto policies of four leading insurance companies and their true intentions. We focus on the Limits of Liability sections of the policy where the insurer’s intentions are somewhat different than your expectations.

FYI – The prevailing competitive rates referred to in these policies are not based on normal market competitive rates. What the insurers are using in these policy segments are insurance contracted labor rates. Read the State Farm section where they refer to a “survey made by us.” The survey is a controlled questionnaire based on their Direct Repair Partner contracted shops that have already agreed to the insurer’s contracted labor rates to stay on State Farm’s DRP program.

Reading these policy statements you will see where the insurer writes, “determined by us” or, “We have the right to choose” or my favorite is, “You agree with us” Our question is… did you? Most people we speak with had no idea they agreed to the use of aftermarket, imitation or reconditioned parts. However, when you purchased each of these policies and the majority of all the others you have waived your rights to original factory parts. There are no holds barred when State Farm spells out what you will get in their auto policy. “We have the right to choose one of the following to determine the cost to repair the covered vehicle” or, “You agree with us the repair estimate may include new, used, recycled, and reconditioned parts. Any of these may be either original equipment manufactured or non-original manufactured parts” On top of this they also state within the policy. “A bid or repair estimate approved by us. 

Most customers tell us they prefer original factory parts used in the repair of their damaged vehicles – We agree and believe those are the only parts that will return your damaged vehicle to a properly repaired automobile or truck. However, it helps us to help you by reading what your auto policy covers.