CONSUMER GUIDE:

AUTO & HOMEOWNERS INSURANCE

NAOSA Gold Standards of Professional Practice™​

Auto & Homeowners Insurance

The focus of the NAOSA research into auto and homeowners insurance is in honesty of pricing and transparency of what is being covered. Insurance can be very confusing with all the different options and it is very easy to get misquoted or simply misunderstand the quote that was given to you. For example, when receiving quotes, an unscrupulous agent may lower your coverage amount or increase a deductible in a certain portion of your policy in order to be competitive or “cheaper” than the competition. 

The National Association of Senior Advocates member professionals have identified two business practices in the auto and homeowners insurance industry that make up our Gold Standards of Professional Practice. The goal of the following Gold Standards is to eliminate bait and switch techniques that are utilized at times to undercut the competition:

NAOSA Gold Standards of Professional Practice™:

1. Policy Replacement and Comparison: Some insurance agents will not quote similar coverage when attempting to replace a competitor’s policy. Instead, the agents will suggest less coverage in multiple areas, which will have the obvious effect of a lower premium. In many situations, the current policy that is the target for replacement is no more expensive than the replacement policy if the agent performed an “apples to apples” comparison. Therefore, when comparing policies for potential replacement, all comparisons will be made utilizing a “line-by-line” comparison method. Comparison quotes will be for the exact amount of coverage currently in force. Only after such comparison may recommendations be made for decreasing or increasing current coverage.

 

2. Quoting State Coverage Minimum Auto Insurance: At times, unethical agents will quote the minimum coverage required by the state in order to win business. In reality, the vast majority of drivers will be required to carry coverage over and above these minimums. This is a classic “bait and switch” scenario. At no time will a NAOSA member utilize this tactic by quoting state minimum coverage unless specifically asked to do so by the customer.

 

Are you a professional in the auto and homeowners insurance business? We welcome your constructive input to assist in the protection of all consumers. Please contact us.