Should I Buy Elephant Insurance?

With all the snow we have been getting lately, you might have had a little extra time to tune in to the latest reality series or primetime drama. If so, you may have seen an increasing number of commercials for a new auto insurer, Elephant Auto Insurance. They have been advertising heavily, and I was curious to find out more about them. I have never handled a claim with them and figured that they must be a new company.

A little research reveals that Elephant Insurance is the first United States based subsidiary of Admiral Group plc, the third largest auto insurer in the United Kingdom. Interestingly enough, their United States operation is based right here in Virginia with the company headquarters in Richmond. Elephant Insurance first started selling auto insurance policies in Virginia in 2009. At this time, Elephant Auto Insurance only sells insurance policies to Virginia residents, but the company hopes to expand to other areas as it becomes more established.

The company operates under a direct-to-consumer model, selling policies directly over the internet or by phone, similar to Geico. Admiral Group plc, the parent company, has over 12 subsidiaries across Europe with over 2 million customers. According to the Wall Street Journal “the insurer, which has no debt, has reported higher net income every year except one since its initial public offering in 2004.” Elephant Insurance alone is performing well and is expected to create a significant amount of jobs in the Henrico area as it continues to expand.

As a Virginia personal injury attorney, I think it is most important that you make sure your policy limits are high. This is more important than your specific carrier. While my experience has demonstrated that some carriers are easier to deal with and do not treat their clients as poorly, it is imperative that people carry as much coverage as they can afford. Do not fall victim to carriers who claim that they can sell you cheaper insurance. They’re really selling you a Ford Pinto when you need a Cadillac. You do get what you pay for.

It remains to be seen if Elephant will simply try to sell cheap insurance or if they will sell people the coverage that they need, and as the claims roll in throughout the coming weeks or months, it will be interesting to see if Elephant Insurance treats their customers fairly.