Getting the Most from Your Insurance Company Before You Need Them

It’s all well and good to talk about the evils of the insurance industry and how they are solely motivated by profit, but what is a consumer to do if they want to protect themselves before they have an accident? There are several steps you can take to make sure you have the right insurance coverage before you need to file a claim.

Compare Insurance Companies

You’ve heard this advice before, but its worth repeating – shop around. We don’t mean just look at prices, we want you to consider the whole package: the terms and limitations of each policy, the company’s complaint record and customer satisfaction ratings, and even their financial strength. You want to make sure that you pick a company that will still be in business when you need them to pay up!

Ask around to get suggestions for companies that are doing well in your area. As your friends, family, coworkers and local repair shops for recommendations. Find out if how long they’ve been with their insurance company, and whether or not they’ve had to file a claim. If they have filed a claim, ask about how they were treated – a personal experience like this can tell you a great deal about the company you’re about to do business with. By talking with individuals and the companies themselves, you want to answer as many of these questions as possible to help you make a decision:

• Sense of the company’s reputation (i.e. are they known for only insuring good drivers, or for offering great low rates but terrible service?)
• How quickly and easily are claims processed?
• Do they have a 24 hours claims service?
• Does the company manage their own claims servicing or do they outsource?
• How long has the company been in business? Ideally you want a company that has been in business for a while, not one that is here-today-gone-tomorrow.

Finally, make sure that you find a company licensed to do business in New York State. Unlike many other states, New York requires that you insure your vehicle with a company licensed by the New York State Insurance Department. You may not purchase out-of-state insurance.

Resources for Insurance Company Information

• New York State Insurance Department provides New Yorkers with a wealth of insurance information, including auto insurance complaint rankings and auto insurance guides and rates.
• Weiss Ratings ranks auto insurance underwriters, so you can see if the company you’re considering is considered a strong, stable company, or if they’re too risky for your business. You can also search for a specific company’s rating, however there is a charge for this service.
• A.M. Best has an Auto, Home, and Personal Property website, where you can find information on auto insurance. They also provide ratings and analysis of auto insurers, which requires that you create a free account with them.
• Standard & Poor’s website allows you to check a company’s financial strength online, after creating an account.

New York Insurers – Best and Worst

Here are the best five auto insurance companies in New York as far as customer complaints and the worst five, according to the most recent data from the New York State Insurance Department:

Least number of customer complaints (1 is the best):

1. American Modern Insurance Group
2. Atlantic Companies
3. Electric Insurance Group
4. Chubb & Son Inc.
5. Amica Mutual Group

Most customer complaints (1 is the worst):

1. Long Island Insurance Company
2. Infinity Property & Casualty Insurance Group
3. American International Group
4. Tri-State Consumer Insurance Company
5. Kingsway Group

How Much Coverage Do You Need?

The minimum liability coverage you’ll need in New York is:

• Bodily injury liability: $25,000 per person and $50,000 per accident for injury and $50,000 per person and $100,000 per accident for death
• Uninsured motorists coverage: $25,000 per person and $50,000 per accident for injury and $50,000 per person and $100,000 per accident for death
• Property damage liability: $10,000
• Basic no-fault: $50,000

Insurance companies recommend that you purchase the most liability insurance available (which should come as no surprise to you) – however you should take into consideration your own assets when choosing coverage levels. If you do not have many assets, a lower liability level may suit you just fine. However, if you have many assets you would be better served with more liability insurance, so that you don’t risk losing your assets if the insurance does not cover all costs for an accident that you cause.

Read Your Contract!

Make sure you read your contract closely. Know exactly what is covered, and what isn’t. Ask questions if you don’t understand anything. Now is the time to find out if there’s a peculiar limitation in your coverage – not the day you try to file a claim.

Some other considerations:

• Consider collision and comprehensive insurance if you lease your vehicle or if you have a very expensive vehicle. This coverage will ensure you can get expensive repairs fixed if you run into a light post or if your car is stolen.
• If you’re buying a new car, consider gap insurance. If you get into an accident or your car is stolen, it will cover the difference between what you owe on the car and what the insurance company will pay out – otherwise, you could be stuck paying thousands of dollars for a car you can’t drive!
• Retain the right to sue your insurance company – don’t sign a document forcing you to mandatory arbitration if you can avoid it.
• Find out if you’ll be forced to use aftermarket parts to repair your car if it is damaged. This practice will vary by insurer, and there are pros and cons either way (mostly the pro is that aftermarket parts are cheap, but the con is that some experts don’t think they are as good as original manufacturer’s parts).

The Law Office of Peter Panas cares about your safety, and we want to make sure that you are treated well by your insurance company and get the coverage you need. If you’ve been injured in an automobile accident, Peter Panas wants to help you get the justice you deserve. Contact our office today and find out how you we can help you recover from your injuries and get the compensation you deserve.

Law Office of Peter Panas, PC
11 Penn Plaza, 5th Floor
New York, NY 10001
Phone: 212-946-4748
Fax: 866-805-2522