Good2Go Auto Insurance Review 2019 - NerdWallet

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• Specializes in selling minimum required car insurance.
• Focuses on high-risk drivers.
• Can help provide SR-22 forms for drivers who need one.

Good2Go has an unusual and complex operating structure. The name refers to an insurance agency as well as several insurance companies owned by the same firm. Good2Go sells policies through its own member companies as well as outside partners, so it may be unclear which company you’re getting a quote from until you enter some of your personal details.

Regulators in at least three states have found fault with the business practices of companies that operate under the Good2Go brand. In addition, both A.M. Best and Standard & Poor’s have raised concerns about the companies’ financial strength.

NerdWallet recommends exploring all other alternatives before considering Good2Go. If you’re shopping for minimum required car insurance, you have many options that are likely to be better choices.

» MORE: Best car insurance companies for high-risk drivers

How Good2Go auto insurance works

Good2Go specializes in providing the minimum coverage a driver needs to meet state laws. It caters to high-risk drivers who may have trouble getting car insurance elsewhere.

Good2Go sells auto policies online and by phone. Some of the policies come from seven insurance companies that are under the same ownership as the Good2Go agency:

• American Independent Insurance.
• Apollo Casualty.
• Bankers Independent Insurance.
• Delphi Casualty.
• Omni Indemnity.
• Omni Insurance.
• Personal Service Insurance.

Together these seven companies, which operate under the Good2Go brand, are licensed to sell insurance in 26 states and the District of Columbia. However, insurers don’t always sell policies in every state where they’re licensed, and it’s unclear how many states Good2Go currently operates in.

Good2Go also refers customers to partner companies, including several that offer quotes online and specialize in covering high-risk drivers. Good2Go’s partners include:

Regulatory actions against Good2Go companies

Auto insurance is a heavily regulated industry. State insurance departments regularly examine the finances and business practices of insurers licensed to operate there. In at least three states, regulators have reported problems with companies that operate under the Good2Go brand.

• Delaware: In 2015, American Independent Insurance and Good2Go were fined $50,000 for violations including excessive surcharges and unfair practices. Regulators said Good2Go misrepresented itself as an insurance company rather than an agency.
• Pennsylvania: In 2013, American Independent Insurance was fined $50,000 for improperly canceling policies, overcharging customers, failing to pay medical bills within 30 days and other violations. Separately, Omni Insurance was fined $7,500 in 2016. Regulators said Omni’s policy documents could make customers think they were getting discounts or surcharges that the company didn’t offer.
• Virginia: Bankers Independent Insurance paid a settlement of $27,600 in 2015 after examiners said the company charged customers incorrectly, misrepresented facts and didn’t make good-faith efforts to pay claims, among other violations. Regulators said many of the violations appeared to be the company’s regular business practice.

Each company responded that it had made changes to address the violations and issued refunds or credits if customers had been overcharged.

Good2Go insurance review details

Good2Go auto insurance coverage options

Although Good2Go focuses on selling liability insurance to high-risk drivers, the agency also offers optional comprehensive and collision coverage. If you owe money on a car loan or lease, your lender may require this coverage, which pays to repair or replace your car if it’s stolen or damaged, no matter who is at fault.

Good2Go also offers:

• Roadside assistance, including coverage for towing.
• SR-22 availability. You can get an SR-22 form, a document that your state may require to prove you have insurance after a DUI or some other serious violation.

» MORE: SR-22s, insurance and how to get cheaper rates

Payment options: Good2Go says it can provide immediate proof of insurance when you buy a policy, with down payments as low as $20. Additional payments are due 20 and 37 days later, and then every 30 days. Quarterly and annual payment options are also available.

Auto insurance discounts from Good2Go

Good2Go has a hefty list of discounts, but not all of them are available in every state or from every company Good2Go represents. Depending on the policy, you may be offered discounts for:

• Insuring more than one vehicle.
• Paying your premium in full, upfront.
• Owning your home.
• Having good grades, if you or someone insured on your policy is a student.
• Renewing your policy with Good2Go.
• Taking a defensive driving class or completing driver’s education.
• Avoiding accidents and traffic violations.
• Having been insured at least six months in a row with your previous insurer.
• Not owning a vehicle. (You’d be covered when driving one you rented or borrowed.)
• Driving a car with safety features like air bags.
• Driving a car with a built-in anti-theft system.
• Having your car’s vehicle identification number (VIN) etched onto its windows, making the car less appealing to thieves.
• Using a mobile app or device that blocks text messages when you’re driving.

» MORE: Compare car insurance rates

Good2Go at a glance

FINANCIAL STRENGTH: NOT RATED

Ratings agency A.M. Best no longer rates the financial strength of the Good2Go-branded companies after they requested to withdraw from the rating process. Good2Go-branded insurance companies had an A.M. Best rating of C+ (“marginal”) at the time of the withdrawal, in March 2017. An insurer’s financial strength indicates how well it can pay claims, and a company with an A- grade or better is the safest bet.

Standard & Poor’s, another ratings agency, reported early in 2018 that the Good2Go companies had been losing money, and some were running low on funds set aside for paying claims, raising concerns about whether the companies can meet their claims obligations and stay in business.

COMPLAINTS

Good2Go-branded insurers had far more than the median number of complaints to state regulators in 2018 relative to their size for auto insurance, according to the National Association of Insurance Commissioners.

More about Good2Go insurance

Website: The Good2Go website explains car insurance requirements for each state, including drunken driving penalties, SR-22 requirements, consequences of driving without car insurance, and laws about texting or using a cell phone while driving. The Good2Go website offers the option to log in to see policy information, make payments and file claims. However, Good2Go doesn’t offer a mobile app for managing policies.