The short answer is maybe, let me explain.
by Ken May
I was sitting at my desk in the agency putting together summaries of targeted accidents that our agents can use in detailing the importance of proper auto insurance coverage at the time of an automobile accident. In other words, these are real-life stories of actual clients that my agents can use to highlight how important it is to both prospects and current clients to not be caught with inadequate insurance coverage. Of course, we would never use our clients’ actual names or compromise their privacy in any way.
What I discovered enticed me to dig deeper into our files to answer some questions that this exercise created. First, I discovered that those clients who had at least two accidents in the past five years usually had many more accidents in a period of the past six years. It seems like certain people don’t alter their driving habits which lead to the first accident. In other words, they didn’t learn anything. In other cases, some people just can’t seem to stay out of the way of other cars even though they were found to be not-at-fault. I also discovered that many people who had numerous accidents and/or tickets in a short time span of a month or so were going through a life-changing event at the time such as a divorce or a death in the family.
Recently, a few of the insurance companies that we represent started making it difficult to write new applications for insurance when the prospective client had a history of accidents whether they were his fault or not. The company would tell us that the application must be submitted to them unbound and they must review it to determine whether it would be accepted or not. And the review process would take 10 to 12 days! Even some risks which seem to be pretty good were going to be forced to be placed under company underwriter scrutiny. In plain talk, this is the company’s way of letting us know that they simply don’t want the risk due to the reasons cited above. They would rather have us place the business with another company who has more of an appetite for this type of risk and may possibly accept the client down the road when his driving record was cleaner.
We live in the information age and it is remarkable how finally tuned auto insurance companies are getting about accepting certain risks with the ability and technology available to crunch the numbers. With so much competition in the auto market, the difference between making a profit and suffering a loss at year-end is razor thin. The companies using the latest technology and processes have the best chance to succeed. This is just one more example of how technology is affecting our everyday lives.
If you would like to speak with a licensed agent about your auto insurance, please call our office at (760) 893-8055 or via email.