Auto Insurance for $20?
Posted by: info | April 9, 2007
Have you ever heard of a company getting in trouble for false advertising? I have been to 4 auto dealerships in the past 3 years. I wasn’t really looking for a car, but I found a couple of deals I couldn’t refuse. All 3 dealerships advertised items not available at the price from the ad. If this is the case with the few I have visited, I wander how big the problem is nationwide. How do they get away with it? I called a company offering auto insurance rates from $20 a month, so I had to get the scoop.
This ad was very interesting to me, seeming we specialize in auto insurance quotes. I have never seen a customer get a quote near that price since 2003. I don’t care what kind of insurance it is for $20. I started investigating this ad to find out if it was a deal or scam.
I called to get a quote to see if a driver could get coverage for $20. I drive an economical car, with no tickets or accidents in the past 5 years. Also I am 29 years of age, with good credit and live in a good area. Most insurance companies consider me a very low risk driver.
Basically I called to get a quote for liability with the state minimums on coverage. The agent was friendly, took my information and called me back within an hour. The quote he gave me was $98.
This is high for a discount auto insurance provider offering coverage to a very low risk driver. I ask him about the $20 ad in the paper. He said I didn’t qualify for that price and couldn’t give me a reason. The agent told me the quote was computer driven and couldn’t be altered or change.
Then I had my wife call back and get a quote for my mother. She is 52 years old, drivers a Toyota Camry, has no accidents or tickets on her record and has excellent credit. Again we asked for basic liability to coverage with minimum state requirements. The agent then called my wife back and offered coverage for my mom at $95 a month. So I decided to try another time with an older driver.
I had my grandpa call in a get a quote. He is 73 years of age, has a Caddy, drives less than 6,000 miles a year with good credit. He ended up with similar results, a $85 a month rate.
I have seen thousands of rates and realize what drivers get the lowest quotes. My grandpa, mom and myself would be consider very low risk drivers to almost all insurance companies. We didn’t even get close to the advertised rate of $20 a month. Who would qualify for this coverage?
To be honest I don’t think anyone would qualify for this rate. I don’t see how they can advertise this price for auto insurance coverage and get away with it. They should be investigated and shut down if they are found guilty for false advertisement. They try to get you to call in for an advertised rate that nobody qualifies for, then they try and sell you coverage at a higher cost. They then offer you excuses on why the advertised rate isn’t available to you or your family. I am going to turn them in and have them investigated. This just waste people’s valuable time and gives auto insurance shopping a bad name.
Companies like this don’t belong in this business. Even if they aren’t shut down by the investigation, people will catch on and stop doing business with them. I will write with the results as soon as possible.
Tags: false advertising, auto insurance for , advertisied price, ads, coverage, low risk drivers
Posted in: Insurance, General |
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