If when you are comparing insurance companies you keep seeing Amica Insurance named together with a great many larger national insurers, you might wonder what is actually different about it.
The main difference consists in its mutual insurance system; Amica Mutual Insurance is owned by its policyholders not by outside shareholders. This kind of structure may influence the way the company runs, such as in the way it pays dividends and in its relationship with customers. Together with other types of insurance, Amica offers a variety of insurance products such as auto, home, renters’, condo, life, marine, motorcycle, umbrella and small-business coverage, although the availability of these products varies from state to state.
The fact that Amica is therefore the better choice for everybody doesn’t follow. Insurance is a very personal matter since factors such as your location, driving record, the property you have, the coverage limits and the deductible may all affect both your eligibility and the price.
What is it that makes Amica different?
Table of Contents
What Is Amica Insurance?
Amica is an insurance company from the United States and has its head office in Lincoln, Rhode Island. The company’s insurance group consists of the Amica Mutual Insurance Company, the Amica Property and Casualty Insurance Company, and the Amica Life Insurance Company; the National Association of Insurance Commissioners has Amica Mutual Group listed as an insurance group comprising those companies.
Amica is mainly known for offering auto and homeowners insurance, but its range of products goes beyond these two areas.
The company offers its policies immediately to consumers and has online facilities for obtaining quotes and for customer service. If you live in a particular area you might be able to buy and manage a number of different types of coverage through Amica.
The Mutual Insurance Difference
The term “mutual” is important for an understanding of Amica.
A mutual insurance company is usually owned by its policyholders not by the general public shareholders. The company refers to itself as a mutual insurer and states that its policyholders have a degree of ownership in it.
This is different from the case of a publicly traded insurance company, where the shareholders own it.
For the customer the difference doesn’t cause your policy to work in a different way since they still have to pay the premium, choose the coverage and the deductibles, and submit a claim when a covered event takes place.
The matter is really a question of the company’s ownership structure and the way it can pass on value to its policyholders.
Amica’s Dividend Policies
A feature which attracts attention is the way in which Amica handles its dividends.
Policyholders who are eligible can get part of their premium back if the necessary conditions are fulfilled and a dividend is declared. Amica states that these payments usually range from 5% to 20% of the annual premium, but they are not guaranteed. It should also be noted that dividend policies are not available in all states or for all types of policy.
It is a significant difference from a standard insurance discount.
The amount of the discount lowers the premium that you are required to pay according to the terms of the policy. A dividend is a payment which may be made at a later date if the conditions are met and a dividend is declared.
For instance, imagine that two customers get similar insurance quotations. One goes for a conventional policy, the other being eligible for a dividend policy. The dividend policy could have a different initial cost and the customer might get a payment later on if a dividend is declared. The real result will depend on the policy and the state.
Since Amica makes it clear that dividend payments are not guaranteed, you should not regard a possible dividend as a guaranteed sum when comparing different policies.
How does Amica stack up against the larger insurers?
One of the easiest differences to notice is size.
Large insurance companies may offer a variety of types of insurance and provide coverage to huge numbers of customers. Although Amica is also a significant insurer, it has a different corporate structure because of its mutual ownership format.
A person shopping, nevertheless, should not base their comparison solely on the size of the company.
Examine these factors instead:
Does the policy actually offer the coverage that you need?
What is the total premium in your case?
What is the deductible? It is the amount you have to pay out from pocket before the insurance starts to pay toward a claim that is covered.
What about useful extras—are they included or available as optional coverage?
Is the product and the feature you are considering available in your state?
What options does the insurance company give with regard to reporting and handling claims?
A smaller insurer or one with a different structure can still be appropriate, but the policy should receive just as much consideration as the company’s reputation.
Amica Auto Insurance
Amica provides standard types of auto insurance, including liability, collision, comprehensive, coverage for uninsured and underinsured motorists, personal injury protection where applicable, and medical payments coverage. The specific requirements for coverage and the states in which it is available will differ from state to state.
It also includes extra features based on the policy and the location.
For instance, the YourPlan program offered by Amica currently has three automatic coverage levels: Essential, Advantage and Signature. The higher tiers allow for features such as full glass coverage, while other features available include accident forgiveness, better car replacement and an OEM parts guarantee provided that certain conditions are met.
It could be useful to you if you need something more than a simple liability policy.
Suppose that you have a vehicle which is fairly new. Then you may want to know how the policy deals with the situation where the car is written off or what kind of replacement parts are used following an accident. Such details can be more important than just securing the lowest quoted premium.
Amica Homeowners Insurance
The homeowners insurance provided by Amica includes the basic protections that are normally found in a homeowners policy.
The policy may provide coverage for the house itself, for any other buildings on the property, for personal possessions, for loss of use, for personal liability and for medical payments, according to the particular policy and the state.
Through its standard quoting procedure Amica provides home owners with two primary options: Standard Choice Home and Platinum Choice Home. The Platinum Choice option includes extra features such as more extensive coverage for personal property and higher limits for some valuables.
YourPlan’s homeowners programme also has three levels of coverage: Essential, Advantage and Signature. The features available can vary considerably among the levels. For instance, the published comparison shows that the way roof-loss settlement and personal-property limits are treated differs between the levels.
It is therefore important to go beyond the name of the policy and verify precisely what it entails.
Discounts Are Available, But They Aren’t Universal
Amica provides a number of different kinds of discount, such as those available when combining policies, for having a claim-free record, for making payments automatically, for using electronic documents and for other qualifying situations. The specific discounts and the requirements for eligibility vary from state to state.
Amica also provides a safe-driving discount as part of its StreetSmart program for auto insurance, stating that eligible customers can get as much as 20% off their premiums through the program, on the condition that they meet the program’s terms.
Amica also offers a bundle discount of up to 30% in some cases. Once more, this should not be understood as a guaranteed discount for all customers. Availability in each state and the eligibility criteria apply.
When you are comparing insurance companies, request the final quote once all the relevant discounts have been applied rather than assuming that the advertised discount will apply to your case.
What could make Amica appealing?
The company might be of interest to individuals who appreciate a mutual insurance system, want coverage that can be customized to their needs, and have the option of a dividend policy where it is available.
The variety of its products also makes it possible for homes which require more than one kind of insurance to bundle their policies.
Another point to consider is the level of coverage you really want. The insurance options currently available from Amica include a number of coverage levels and optional features, which enable customers in eligible states to select between more basic and more full protection.
But these features don’t mean Amica will always be the right choice.
Possible Negative Aspects to Consider
The most obvious issue is availability.
Insurance regulations differ from state to state, and Amica does not offer every product, discount or policy feature everywhere. Even its dividend policies aren’t available in every state or for every policy type.
Price can also be a key factor.
There is no one-size-fits-all Amica premium since insurers base their pricing on individual circumstances. A firm which gives one driver or homeowner a favourable quote will not give the same rate to another person.
It doesn’t necessarily follow that having more coverage options is a benefit; if you include features that are unnecessary, you might end up paying for a type of protection that isn’t appropriate for your particular situation.
Should one consider Amica Insurance?
Certainly, if you are seeking an insurer that has a mutual ownership structure and wish to compare aspects other than just the stated premium.
The most interesting point is that a dividend policy is available, but this should be seen as a possible advantage rather than as a sure thing. Moreover, Amica provides a variety of coverages for cars and homes, together with discounts and optional features which differ according to the state.
The most effective way is to compare Amica’s rates with those of at least two or three other insurers who offer the same coverage limits and deductibles; in that case, a lower quote might actually mean less protection.
Frequently Asked Questions
Is Amica Insurance a mutual company?
Correct, Amica refers to itself as a mutual insurer, which means that the policyholders own the company rather than the company being owned by external shareholders.
Does Amica pay customers dividends?
In some states and for certain eligible types of policy Amica provides dividend policies. The company states that dividend payments amount to between 5% and 20% of the annual premiums, but it is important to note that dividends are not guaranteed and their availability will vary.
Does Amica provide both auto and home insurance?
Yes. Amica offers both auto and homeowners insurance, along with other products. The exact products and coverage options available depend on the customer’s state.
Is Amica always cheaper than larger insurance companies?
No. Insurance pricing relies on individual circumstances, and there is no reliable basis for saying Amica is always cheaper. The most effective method is to compare quotes using equivalent coverage and deductibles.
Can I bundle insurance with Amica?
Amica offers multiline and bundle discounts for qualifying customers. The company currently advertises savings of up to 30% in certain situations, but discounts vary by state and eligibility.
The Bottom Line
Amica Insurance is out less because of its size and more because of how it is structured. Its mutual ownership model, optional dividend policies, and selection of customizable insurance coverage give it a somewhat different approach from many large insurers.
That doesn’t make it automatically better or cheaper. Before switching, compare the actual policy: coverage limits, exclusions, deductibles, available discounts and total premium. If a dividend policy is available, comprehend its cost and conditions rather than counting the potential payment as guaranteed savings.
For many shoppers, that’s the most useful way to look at Amica: not as an automatic winner, but as a different kind of insurer that may be worth putting on the quote list.
