Do your clients really know their auto insurance coverage?

Do your clients really know their auto insurance coverage?

“Any driver would be able to tell if they have enough auto insurance. At the end of the day, no one would know more than the person who paid, right?”

Wrong!

Despite looking straightforward, the percentage of drivers who mistakenly think that they have everything they need in terms of their auto insurance policy is surprising.

Auto insurance policies are complex. There are many terms and conditions which make it difficult for clients to understand. In Canada, a car insurance plan must be comprehensive enough to protect the client from A to Z. It must be inclusive and protect against a wide range of threats, from the continuously changing road conditions to accidents, whether at-fault or not.

As an auto dealership, you always want to be there for your clients. You want your clients to be aware and secure, and you want to keep their trust in you.

Throughout this post, we will supply a brief guide on how to help your clients figure out their exact auto insurance policy needs.

What Happens if a client drives with no insurance coverage

Let’s start with the most extreme case: a client drives with no auto insurance. If a driver is stopped on the road without any auto insurance coverage, the driver would likely face severe financial and legal consequences. The absence of insurance means that the client would be solely liable for any damage caused.

What Happens if a Client Drives with insufficient insurance coverage

Next, let’s discuss a more common scenario: driving with inadequate auto insurance.

A driver who causes an accident must pay for losses that exceed his liability limits. Not only that but even if he pays the sum owing to the other harmed party, the driver’s license may be revoked under certain circumstances.

When an accident causes injuries to other people in an accident, the bodily injury liability pays for the injuries for which the driver is legally liable, and the property damage liability pays for damage to property, such as other cars or guardrails, but only up to the limits that were previously set.

After surpassing the liability limits, the driver is held personally liable to pay individuals who have been affected, and that is the main issue with selecting a low minimum liability limit.

How do Clients Find out Their Current Coverage?

Auto insurance terms and policies are often confusing. We have seen many cases where people think they have sufficient coverage when they don’t.

There are several ways that clients can check their current auto insurance coverage, including:

    • Check your email inbox – Most insurers send an email confirmation and other important policy information after the deal is done. Simply search your mailbox for the words: insurance, auto insurance, policy, or premium.
    • Examine your pink card – Check out the policy information from your insurer, located on your pink card. This should give you all the information you need about your coverage. You can also access your digital pink card 24/7 with the MySharp app.
    • Contact Sharp Insurance – If you want a guaranteed option that is 100% hassle-free, direct your clients to contact Sharp Insurance and let us give your customers a free insurance review to ensure they have the coverage they need.

Final Tips

Drivers sometimes rely on the bare minimum for an auto insurance policy, but it can be costly. Our golden advice would be to avoid that. Driving without auto insurance may be costly, so can buying insufficient coverage. If your client causes an accident with several injuries, the minimum insurance may not be enough, and he/she might have to cover some significant costs on their own.

In conclusion, having sufficient auto insurance coverage is not a luxury as the consequences might be very costly, both financially and legally. Your clients need to be 100% sure that their current policies cover them totally, as some might think they are already aware, while in fact, they are not.

To help with that, Sharp Insurance can give your customers an insurance review to ensure they have the coverage they need. All free of charge!