I have my automobile insurance with AIG Direct, and the recent news that AIG is on the verge of going under has me thinking about whether there's anything I should be doing to protect myself.
My current policy cost approx $500 for 6 months of coverage ending in a couple of months. I could pay a $50 early termination fee to move to another company, but that would be essentially taking a $50 bet that my insurance will get taken down by an AIG failure in the next couple of months. Theoretically insurers should have adequate reserves that even if the company fails the claims can still be paid. And chances are that even if AIG fails I probably won't be filing a claim in the next couple of months anyway.
I should be okay if I just ride it out, and change to another insurance company at the end of my policy in December.
But if AIG does fail, that could raise insurance premiums, meaning I would be better off if I locked in another policy now. So I suppose my best bet is to buy new insurance now, effective at the end of my AIG policy.
Then again if AIG does pull through, they might end up being a really good deal because they might have to lower premiums to attract clients... the bargain hunter in me is lighting up... must resist the attraction