As a nationally recognized personal injury attorney and car accident lawyer in practice for over 25 years, I’ve successfully resolved literally thousands of auto accident claims. In that time period, I’ve found that for all the billions of dollars the auto insurance industry spends every year trying to convince people that they can “save money” by switching to this carrier or the other, they misrepresent the real truth behind auto insurance. I wanted to explore some of these myths in this blog post.
Myth #1: “Only pay for what you need!” “Save HUNDREDS of dollars every year”
This one, I think is a great example of fundamental misrepresentations in auto insurance ads. Lately the slogan and concept has been used most by Liberty Mutual. We see the usual antics of a guy with a pet Emu running around telling people that their insurance company is better because they show you how to “only pay for what you need”. What does this mean? It implies that there are a lot of insurance coverages that you can do without and shouldn’t pay for. Nothing could be further from the truth if you actually have to file a claim for property damage or bodily injury. In addition, almost every insurance company touts their ability to save you “HUNDREDS” of dollars a year. This is a more subtle misrepresentation. The actual truth is that for only a few hundred dollars more each year, you could have much better coverage. For example, waiving uninsured motorist coverage, might only save a person $50-75 a year but, could end up costing them tens or even hundreds of thousands of dollars in uncovered medical expenses if they are hit by an uninsured driver!