I'm Saving $480 With a Pay-Per-Mile Insurance Company. Here's Why I'm Canceling

Last fall, my spouse and I decided to switch from a large well-known car insurance brand to a small pay-per-mile company. The basic policy was cheap, and the per-mile rate was about $0.047 per mile. Since we both work from home and live downtown, the switch helped us save about $40 per month, or roughly $480 for the first year. However, after recently filing a claim with the company, we decided the savings were not worth switching from a reputable brand to a little-known company. Here's what we learned. 

The company's customer service has frustrated us 

First, let's start with some backstory. Recently, our car was rear-ended and I filed a claim over the phone. I was told an adjuster would reach out to me the next day. After 10 business days, I finally called the company back only to find out my insurance claim had never been filed, nor was there any record of my previous phone call. 

After filing the same claim a second time, I was told again an adjuster would reach out the following day. That didn't happen. Roughly 15 days later, the adjuster finally called and told me they would start working on my claim. Our situation was complicated in that the driver who hit us had left his name and license plate number, but no insurance policy. Our adjuster said they would investigate and give me an update the following week. 

The following week no such call happened, and I finally sent the adjuster an email asking for an update. My spouse was also pregnant and in her third trimester, and we were getting anxious we would not have the car fixed before the baby arrived. I conveyed these concerns to the adjuster over email, but having heard nothing from them, I called their number, which went straight to voicemail. 

It took a few days (and many failed attempts) before I realized the adjuster turned their phone on in the mornings and turned it off just before lunch. With this knowledge, I finally got a hold of them. They sounded frustrated and assured me the process was moving steadily. They reiterated that this was a complicated case, but they were nearly at a verdict and would call me before the end of that day. As you might guess, the adjuster didn't call that day but rather emailed about seven days later to let me know our damages would be covered under our uninsured motorist coverage and they would send an appraiser to assess the damages. 

At this point, more than nine weeks have passed since we first filed our claim, and we're still waiting on the settlement check. Thankfully, we didn't need the car during that time, but if we had -- it would have been very difficult to get around.  

Sometimes, customer service is better than a lower premium 

Now, let me be clear: People who work in the service industry, whether it's a customer rep or an insurance adjuster, deserve praise, because they're often overworked and underpaid. And I don't think the people at my insurance company were trying to mislead me. More likely than not, they didn't have a direct answer and were only trying to get through the mountain of work that my call was taking them away from. 

But if they had only been transparent upfront about the claims process length -- not tomorrow, say, but between two to three weeks -- I would have been patient and more understanding. This experience left a bitter taste in my mouth, and my gut is telling me I should look for a new car insurance company. 

As I shop for car insurance, here's what I'm looking for now: 

• Digital portal with robust tools. It would be nice to have the ability to check a claim's status online. Sadly, the pay-per-mile company I worked with didn't even have a portal for me to sign into. That should have been a red flag from the start, but the savings were just too important at the time. 
• Great customer reviews on third-party sites. These include TrustPilot and the Better Business Bureau. This company has a pretty low rating on TrustPilot (3.2 out of 5 stars) with customer complaints on the claims department that match mine! 
• Reputable brand name. The pay-per-mile company is small and likely doesn't have the staff to handle high claim volumes. Even if it means paying more each month, I'm going to find a bigger brand that will likely handle my claim faster. 
• Great savings. Yes, saving money is still a priority, though it's no longer the only thing I'm looking for. 

At the end of the day, I want to save money, but I also don't want a non-responsive adjuster or customer service team. At this point, I'm okay paying a little extra per month, if it means having solid support and the best claims department when I need it.