Budget Auto Insurance Coverage
Written: Sep 15 '03
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Pros: Rates are low; friendly staff
Cons: Could cost you in the log run if you switch back to a major carrier
The Bottom Line: AIG offers competitive rates on auto coverage, but it could cost you if you switch back to your original carrier.
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| Bryan_Carey's Full Review: AIG - American International Group - Auto |
With the high risk of liability and lawsuits, auto insurance is almost a necessity nowadays. In the absence of such coverage, a serious wreck could cost one his/her life savings. In addition, many states require proof of auto insurance coverage in order to get a license or to renew registration. The financial seriousness of auto accidents seems to get everyone a little on edge, including those who drive and those who register vehicles at the state level.
No one doubts that auto insurance is an essential component of vehicle ownership. The problem, of course, is finding a company with decent coverage for the least possible cost. One auto insurance company that fits the bill is AIG Auto Insurance, a discount coverage provider.
Coverage Options:
AIG offers the usual coverage plans that most auto insurance companies offer, like bodily injury, property damage, uninsured motorist, collision, towing & labor, medical payments, etc. Each of these coverages allows the driver to select a deductible level ($100, $250, $500, etc.) and to choose which coverage options are most critical to his/her needs.
In addition to the typical coverages explained above, AIG has some more unique discount offers to help cut your insurance bill down to size. They offer discounts for mature drivers who have completed a defensive driving course; a discount for "good" students who have maintained a specific grade point average; a "safe" vehicle discount for driving a vehicle that has performed better than average on crash tests; etc. They also offer standard discounts, like reductions for multiple vehicles and discounts for opening multiple AIG insurance policies.
Payment Methods:
AIG offers several payment options to make your life a little easier. If you like, you can pay your six- month premium in a lump sum. If this is too much, you can elect to pay the six month premium in two installments or pay one month at a time.
AIG accepts checks, money orders, or credit cards for payment. You can mail in your payment or call it in, over the phone. You can also use electronic funds transfer, if your financial institution offers this.
If you elect to use one of the multi- payment options (monthly or twice every six months), AIG will add a $5 fee per payment, as a service charge. To avoid fees as much as possible, it's best to make your payment in full, once every six months.
Final Thoughts:
AIG is one of the largest discount insurance providers in the world, with a full range of insurance options and operations in more than 130 countries. AIG offers coverage for more than just automobiles. You can purchase life insurance, homeowners insurance, business insurance, and other financial services through AIG.
With auto insurance, AIG does have a certain appeal over many of the better known carriers. The main appeal, of course, is the lower than average cost to carry a policy with AIG. I have been contacted several times by AIG; through the mail, on the phone, and via e-mail. They promise that they can save me some money on auto insurance and on more than one occasion, I have requested a quote to compare with my present provider. The rates they quote are slightly less for the same coverage. For example, a recent quote that I got included all of the standard coverages offered (bodily injury, porperty damage, medical payments, uninsured motorists, collision, towing & labor) along with miscellaneous coverage (for other liabilities that might spring out of nowhere) protection. The six- month premium for my one vehicle was just $330, or $55 per month (with $500 deductible, in most of the coverage areas). This is about $50 less than my current carrier charges for six months.
As tempting as it might be to switch to AIG, I was advised to resist for a couple of reasons. First of all, AIG is known to tempt customers with special starter rates that are almost certain to increase after a year or so. This increase varies from person to person and from location to location, but it's roughly a 10 to 15 percent increase. With the additional money added on, AIG would end up costing about the same as my current provider.
The other reason I resisted is because of AIG's status as a "discount" provider and how it is viewed by the larger competitors. If a customer is currently covered by one of the big insurance companies, like State Farm, Nationwide, etc., and he/she switches to AIG, it will cost more in the long run if that individual switches back. This is because AIG is considered a discount company that caters to high- risk individuals. If you start a policy with AIG and then try to switch back to your old insurance carrier, it could cost you significantly more because some of the insurance companies will now consider you a higher- risk driver. This isn't necessarily true for all insurance companies, but it is true for some which is why you need to approach AIG with caution and make sure you have your facts straight before you make the switch.
AIG has a good record with customers for its friendly service. I have dealt with AIG personnel over the phone and internet many times over the years, and they have always been courteous. They seem genuinely concerned about the cost of auto insurance and they want to help customers save money. Claims are processed quickly, too, and they can be either called in or submitted on- line. It takes about 15 minutes to submit via the internet and they usually contact their policyholders within one or two business days.
AIG has some decent insurance products to offer. If you want to find out more, just access the company's services on- line at aigdirect.com or call 877-310-5687. AIG's best feature is it's low prices, but you need to be aware that starting an auto policy with AIG could change your status to higher- risk and could cost you more money if you switch back to your original carrier. If this is not a concern and your happy with AIG, then go ahead and see what this company can do to lower your insurance rates. AIG does offer competitive prices and it can help to lower your premiums down to a level that fits well with your monthly spending budget. Logon to the website or call direct, and see what AIG can do for you!
Recommended:
Yes
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