Auto Insurance: Who's Covered And Why It Matters

The General Automobile Insurance Services Inc. is an insurance agency that provides auto insurance through affiliated companies. It has been in business for 60 years, offering flexible payment options and coverage for high-risk drivers. The company's auto insurance rates are influenced by factors such as age, gender, driving record, credit score, vehicle type, and location. The General caters to a diverse range of customers, including those with less-than-perfect credit and driving records. While it has received positive reviews for its service and affordability, it also faces criticism for high premiums and below-average customer service.

High-risk drivers

• A history of Driving Under the Influence (DUI) or Driving While Intoxicated (DWI)
• Reckless driving convictions
• Multiple speeding tickets
• Multiple at-fault accidents
• Multiple moving violations, such as running a red light or making an improper turn
• Poor credit history
• Lapses in insurance coverage
• Being a new driver with no prior insurance coverage
• Filing many claims in a short period of time
• Owning a high-value vehicle

Young and inexperienced drivers, particularly those aged 17-25, are often considered high-risk due to their lack of experience and tendency to engage in riskier driving behaviours. However, this is not always the case, and insurance companies may offer incentives and discounts to young drivers to minimise their risk factor.

Low-risk drivers

While there is no industry standard for defining a low-risk driver, several factors can contribute to this classification:

• Clean driving record: Low-risk drivers typically have a clean driving record, free of any at-fault accidents, speeding tickets, or DUI convictions.
• Safe driving behaviour: Demonstrating safe driving behaviours, such as adhering to speed limits, following traffic rules, and avoiding reckless driving, can contribute to being considered low-risk.
• Experience: More experienced drivers are often viewed as lower risk compared to novice or teenage drivers.
• Consistent insurance coverage: Maintaining consistent insurance coverage without any lapses can be favourable when determining risk levels.
• Credit history: In most states, insurance companies take into account an individual's credit history and insurance score. A good credit score can indicate lower risk.

It's important to note that insurance companies consider various factors when assessing risk, and each company may have its own criteria. Additionally, risk levels can change over time as an individual's circumstances evolve. For example, a driver with a clean record for several years may be considered lower risk than someone with recent traffic violations.

When seeking insurance as a low-risk driver, it's advisable to compare quotes from multiple companies, consider the coverage options available, and choose a reputable company with positive customer satisfaction ratings and financial stability.

While low-risk drivers may enjoy more favourable insurance terms, it's important to remember that risk levels can change over time. Maintaining a clean driving record, practising safe driving habits, and regularly reviewing insurance coverage can help individuals maintain their low-risk status and access more affordable insurance options.

Discounts

Good Student Discount

Students who maintain a certain grade point average, typically a B average or higher, can often get a discount on their auto insurance. This discount is usually available to high school and college students.

Defensive Driver Discount

Completing an approved driver training course can help reduce your auto insurance costs. These courses teach safe driving techniques and can help you become a more cautious driver.

Multi-Car Discount

If you insure multiple vehicles with the same company, you may be eligible for a discount. This is a great option for families with multiple cars or individuals who own more than one vehicle.

Safety Features Discount

Cars equipped with air bags and passive restraint systems are considered safer and may qualify for a discount on your auto insurance. This discount encourages drivers to prioritise safety when purchasing a vehicle.

Homeowner Discount

Some auto insurance companies offer a discount if you own a home. This is because homeowners are often seen as more financially stable and responsible, which can lead to lower insurance rates.

Double Deductible Discount

The General offers a unique "Double Deductible" discount, where your premium is reduced if you agree to double your deductible amount for the first 45 days of your policy. This can be a great way to save money if you're willing to take on a higher deductible in the short term.

Safe Driver Discount

Maintaining a clean driving record for three to five years can result in a discount on your auto insurance. This discount rewards safe driving behaviour and encourages drivers to follow the rules of the road.

Previous Insurance Discount

If you've had continuous auto insurance coverage with another company for the past five years, you may be eligible for a discount when switching to The General. This discount recognises your commitment to maintaining insurance coverage.

Pay-in-Full Discount

Paying your entire premium upfront can often result in a discount. Insurance companies prefer receiving the full payment at once, and they pass on some of the savings to the customer.

It's important to note that discount availability and eligibility can vary by location and insurance company. Be sure to check with your insurance provider to see what specific discounts they offer and how you can qualify for them.

Customer service

The General's customer service team is responsive, friendly, and helpful, and the company has a history of putting customers first for 60 years. The company's longstanding presence in the industry has helped it gain the trust of its customers, with many being second- and third-generation customers. The General's customer service number is 1-866-519-7422.

The General also offers flexible payment options, including low down payments, and serves customers with less-than-perfect credit and driving records. The company provides a quick and easy claims process, with representatives available 24/7.

However, some customer reviews mention costly premiums and poor communication between policyholders and company employees. The General has also received a higher-than-average number of customer complaints, with data from the National Association of Insurance Commissioners (NAIC) showing that drivers logged about eight times more customer complaints against The General than the average for car insurance providers in 2023.

Cost

The cost of auto insurance varies depending on several factors, including demographics and location. The national average annual car insurance cost in the US is $1,766 for full coverage and $497 for minimum coverage. However, these rates can differ significantly from state to state. For example, Wyoming has an average full coverage rate of $970 per year, while Florida's average rate is $3,090.

The cost of auto insurance is influenced by factors such as age, gender, driving record, credit score, vehicle type, and location. Younger and less experienced drivers often pay higher premiums. Men tend to pay more than women, especially at younger ages. A person's driving record also plays a crucial role, with accidents, traffic violations, and DUIs leading to higher insurance rates. Credit score can impact premiums, with lower credit scores resulting in higher costs. The type of vehicle being insured is another factor, as the cost of insurance is usually proportional to the value of the car. Finally, location is a significant determinant of insurance rates, with urban areas typically having higher insurance costs due to higher rates of vandalism, theft, and accidents.

The General, a car insurance company operating in 47 states, offers coverage options for high-risk drivers. Their rates vary depending on factors such as age, vehicle history, and coverage plan. Their average cost of full-coverage insurance is $3,154 per year, which is higher than the national average. The General caters to high-risk drivers and may be a good option for those with a bad driving record.

In summary, the cost of auto insurance depends on a multitude of factors, and rates can vary significantly between states and insurance providers. It is essential to shop around and compare quotes to find the most suitable coverage and price for one's specific circumstances.

Frequently asked questions