Cure Auto Insurance: Is It Worth The Hype?

Cure Auto Insurance is a New Jersey-based auto insurer that offers affordable car insurance rates based primarily on driving records rather than credit history, occupation, or education level. This makes it ideal for drivers with poor credit scores. However, it has a limited presence, currently serving only Michigan, New Jersey, and Pennsylvania. The company has received mixed reviews, with some customers praising its low rates, while others have complained about its poor customer service and limited coverage options. It has also been accused of giving bad advice to drivers, leading to under-insurance and financial exposure.

CURE auto insurance is only available in three states: Michigan, New Jersey, and Pennsylvania

CURE auto insurance is a good option for safe drivers with a poor credit history. The company bases its insurance premiums primarily on driving history, rather than other factors like credit score, occupation, or education level. This means that CURE offers affordable rates for drivers who may be considered higher-risk by other insurance companies due to their jobs or lack of homeownership.

However, it's important to note that CURE has a limited number of coverage options and discounts available. The company also has a high rate of customer complaints, with a NAIC complaint index score of 5.16 in 2023, indicating that many customers have filed complaints regarding claims handling, unsatisfactory settlements, and denials of claims.

Overall, while CURE auto insurance may offer affordable rates for certain drivers in Michigan, New Jersey, and Pennsylvania, it is important to carefully consider the company's limitations and customer satisfaction before choosing their insurance services.

The company bases insurance premiums primarily on driving history, not credit score

CURE Auto Insurance bases its premiums primarily on a driver's history, rather than their credit score. This means that the company calculates insurance rates based on a customer's driving record, rather than their financial background. This approach aims to provide affordable insurance to responsible drivers with low credit scores.

CURE's policy of determining rates based on driving records means that it offers lower premiums to drivers with a history of safe driving and no accidents. The company's focus on driving history also means that it does not consider factors such as age, gender, education level, occupation, marital status, location, or vehicle make and model when setting insurance rates.

CURE's approach to insurance rates is based on the belief that relying on income rating factors can be "discriminatory". The company was founded in 1990 in response to the auto insurance affordability crisis in New Jersey, where high insurance rates were making it difficult for residents to obtain coverage. By basing premiums on driving history rather than credit scores, CURE aims to provide fair and accessible insurance to all drivers, regardless of their financial background.

In addition to its focus on driving history, CURE also offers a range of discounts to help reduce premiums. These include discounts for parking in secure locations, multi-vehicle policies, completing a defensive driving course, and maintaining a loss-free driving record.

However, it is important to note that CURE's rates may not be the most competitive for drivers with a history of accidents or traffic violations. The company's rates are designed to reward safe drivers, so those with a poor driving record may find more affordable coverage with other insurance providers.

CURE has a high rate of customer complaints

CURE Auto Insurance has a high rate of customer complaints, with a National Association of Insurance Commissioners (NAIC) complaint index score of 5.16 for private passenger auto insurance in 2023. This score is five times the industry benchmark, indicating a high number of customer complaints relative to the company's size.

Consumer complaints against CURE Auto Insurance nearly quadrupled in 2023, according to the Michigan Department of Insurance and Financial Services (DIFS). The company had the third-highest number of complaints among Michigan's 85 largest auto insurers in 2023, despite being only the 21st largest auto insurer. Similarly, CURE had the third-highest complaint ratio, indicating the proportion of complaints relative to the millions of dollars collected in premiums was also high.

The majority of complaints against CURE Auto Insurance centre around issues with claims handling, including delays, unsatisfactory settlements and offers, and denials of claims. Customers have reported that the claims process involves prolonged back-and-forth communication, with company representatives sometimes being unresponsive or uncoordinated. There have also been reports of CURE attempting to rescind policies and find reasons to avoid paying out on claims.

In addition to issues with claims handling, some customers have complained about receiving poor advice from CURE, encouraging them to lower their coverage limits or opt out of certain types of insurance altogether. This has left some customers underinsured and exposed to high medical bills and financial debt in the event of an accident.

While CURE Auto Insurance may offer affordable rates, particularly for drivers with poor credit histories, the high volume of customer complaints suggests that customers may encounter significant issues when attempting to make a claim or resolve other issues.

CURE offers a range of discounts to eligible drivers

CURE Auto Insurance offers a range of discounts to eligible drivers. The company provides affordable rates for safe drivers and those with bad credit, with premiums based primarily on driving history rather than credit score.

CURE offers a good driver discount of up to 35% for drivers who have been accident-free for at least three years. This discount is available for new policies if all drivers on the policy have clean driving records for a minimum of three years before the application date.

The company also provides a multi-vehicle discount for customers who insure multiple cars under one policy. Additionally, CURE offers a parking discount for comprehensive and collision coverage policyholders who park in a driveway or garage instead of on the street.

CURE also provides a good student discount for students who maintain high grades. Furthermore, the company offers a low mileage discount for drivers who don't commute daily or only use their vehicles occasionally.

While CURE has a limited number of discounts compared to other providers, these discounts can help eligible drivers reduce their insurance costs.

CURE's claims process has been described as long and uncoordinated

CURE Auto Insurance, or Citizens United Reciprocal Exchange, is an insurance company that offers affordable car insurance rates based primarily on driving records rather than customers' credit history, occupation, or education level. The company has been praised for its mission of reducing discrimination in auto insurance, offering lower rates to drivers with poor credit scores. However, CURE's claims process has received mixed reviews, with some policyholders describing it as long and uncoordinated.

CURE's claims process has been a source of contention for some customers, with reports of prolonged investigations, delayed payouts, and unresponsiveness from company representatives. The process often involves multiple rounds of back-and-forth communication, with customers needing to provide detailed information and paperwork. This has resulted in a higher-than-average number of complaints, with the National Association of Insurance Commissioners (NAIC) giving CURE a complaint index score of 5.16 in 2023, indicating a rate of complaints five times the industry benchmark.

While some customers have expressed frustration with the claims process, others have praised CURE for its simple and straightforward approach. It's important to note that insurance claims can be stressful, and CURE does provide customers with a claims representative who is available throughout the process to answer questions and expedite the handling of the claim. Additionally, CURE offers direct repair shops, which may help customers find reputable repair services and expedite the claims process.

To file a claim with CURE, customers need to provide information such as the location, date, time, and description of the accident, as well as the name of the driver if another vehicle was involved. CURE may also request additional details, including contact information for all involved drivers, vehicle locations, and police report details. Customers can expect to hear back from their claims representative within one to two business days.

In conclusion, while CURE Auto Insurance has received recognition for its commitment to offering affordable rates based on driving records, its claims process has been a point of criticism. Customers have experienced delays and unresponsiveness, resulting in a higher volume of complaints compared to industry benchmarks. However, CURE also provides resources and support to guide customers through the claims process, demonstrating their commitment to assisting policyholders during stressful situations.

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