We’ve all seen the commercials on T.V. and on the radio, and every time we’re online we see some little cartoon figure in an ad offering “instant proof of insurance.” Usually that phrase is followed by an exclamation point, which means only one thing, right? Doesn’t that exclamation point mean “instant proof of insurance” is something rare, hard to obtain, special, and one heck of a deal for those who buy insurance from that company? Doesn’t the fact that the insurer offers it mean that it’s special?
Just imagine! What if we were all able to get INSTANT proof of insurance from our insurance companies? How dare all other companies not provide instant proof? What have we really been paying for all this time if we don’t get instant proof of insurance? Look at this innovative company offering instant proof of insurance! One big wool blanket of insurance must have been pulled over our eyes this whole time.
Yes–maybe a wool blanket was pulled over some consumers’ eyes. But it’s only because they’re basically being fooled into thinking they’re buying something with an exclusive feature.
Someone asked me today, “What’s the big deal about those companies like The General who advertise instant proof of insurance? Is that not available with other companies or something?”
So here’s the truth of the matter: proof of insurance is not something insurance companies have been withholding from customers. Even though companies like The General make it seem as though they’re offering something exclusive and special, you’re not getting anything you couldn’t get from EVERY insurance company on earth. In fact, every policyholder on the planet gets proof of insurance at some time or another: it’s really up to the policyholder when they do.
Instant proof of insurance itself doesn’t have special powers nor is it anything unique. All instant proof of insurance means is that you can get a PDF version or electronic version (via fax, email, or website) of your insurance card or declarations page as soon as you ask for it. That’s because it’s 2012 and insurance companies have email, fax machines, and all those other fancy technology things that help make things ‘instant’—just like microwaves and instant mashed potatoes!
Most states require drivers carry proof of insurance with them at all times, but there are times instant proof of insurance is needed. If you’ve just bought a car but didn’t carry coverage previously, for example, and the dealership or lien holder requires you to show proof of coverage before you drive it off their lot. You could buy a policy from ANY insurer and ask them to fax or email proof to the dealership or lien holder. If you already have auto insurance, you can usually just show your I.D. card or the declarations page of your current policy, regardless of whether the new vehicle is on it. Most states and insurers give you a specified amount of time that a newly bought vehicle is covered under an existing auto policy. For example, your insurer may give you seven days to update your policy from the date of purchase.
So instant proof may actually be necessary at times, usually for those who don’t currently have auto insurance and who need to provide physical proof of insurance FAST. However, this “instant proof of car insurance” with an exclamation point is actually something all policyholders can get for FREE, INSTANTLY, and ELECTRONICALLY from any insurer.
Last time I checked, large companies like Nationwide and Allstate seem pretty up to date when it comes to technology, so if you ask them to fax or email you proof of insurance right away they can probably do that. Who knows why some companies really use “Instant proof insurance!” as their calling card—maybe they don’t have anything else extraordinary to put on their ads to be their calling card. Perhaps they started using it as a slogan back when fax machines seemed like magic and never developed a new catchy slogan like “On Your Side” or “Like a Good Neighbor.” Maybe these insurance companies just never hired the clever marketing executives that are over at Geico or Aflac.
Whatever the reason, some consumers may be fooled into thinking they’re getting something exclusive to that insurance company and that they can’t get the same thing from other insurers. That’s simply not true. If you want or need instant proof of insurance, all you need to do is go online and print off your I.D. card or call your insurer and ask them to email or fax it to you. In the future, you may even be able to keep your proof of insurance on your smart phone. My money is on the bet that most insurance companies will stay up to date with smart phones.
What’s the big deal about instant proof of insurance? There’s not one. Certainly not one worth an exclamation point.
-Desiree Baughman, InsuranceQuotes.com, @DesireeDB
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