Monthly Archives: March 2012

Vehicle Insurance Premiums Vary a lot

A common misunderstanding among motorists is that premiums are not much different among hundreds of companies. Mistakenly, they think that the regulation of the industry applies to prices. A few people including brokers and agents suggest this to their clients and this may be where all started. Unfortunately, they earn money if they sell policies and at time they may be a little far off the truth.

The myth is that companies cannot charge whatever they like for auto insurance policies. Well, actually they can, they will and they do. It is a business after all and they will aim to make profits from their endeavors. They have shareholders like any other business and there is not much point in going on if you cannot turn on profits.

auto insurance choicesThere is no way that state insurance commissioners can change this fact. They do inspect the companies and approve their rates. But this doesn’t mean they decide for the companies what to charge. What it means is that they look at the way companies price each type of risk to make sure there is no discrimination or similar law breaking when they are setting rates.

What is all these mean for you as a consumer? Does it mean that companies can cheat and lie to you? Not really, since you are not captive to one particular firm. You are practically a free agent who can choose among sea of alternative. This is the case when you are buying most things and it doesn’t change when you buy insurance products.

If a company is not honest and expensive they can get found out easily and lose customers. This is the idea anyway but the market is not perfect. Some people may be impressed with TV adds and go with a company without checking others. A few others will never see the point of shopping around because of wrong information and misguided loyalty they feel towards their insurers.

However, you are responsible for your own choices and you look after your own wallet. You should even consider buying a policy without getting a few quotes. This is the way to see where you stand at this moment of time. It doesn’t really matter that last year your insurer was highly impressive in terms of prices. Life moves on with so many changes every day that we have to look at where we are the present moment.

Getting a quote is like taking a picture in a way. It reflects the prices at that moment. A week later you may not be able to find the low rates anymore or get them even cheaper. What you need to look at is what is the position at the moment. By getting several quotations you would be taking a few pictures and comparing them.

When you must choose only one picture you put them side by side and see which one impresses you in terms of composition, lights and quality. You apply the same logic to your quotations and pick one. If you follow this path you will see that prices are a lot different from each other even when you have approximately the same coverage.

Don’t Skimp on Vehicle Insurance Cover

Sometimes we may all get shortsighted and look for quick gains or price reductions. We don’t take the time to think what might happen if the worse come. You buy insurance to be protected in worst cases. When you cut corners on coverage you are betraying the whole logic behind wanting to purchase a policy. It is always better to be safe than sorry.

This last statement cannot be any truer in insurance business than any other. You have no idea what can come on your way while driving on busy roads. You may have an accident that can be pinned on to you. In such cases, you will be the one paying all the damages. If you have sufficient coverage you will be less worried about the claims against. Your insurer will have to deal with them and pay the legitimate claims.

Therefore, your first step would be to insure against all the liabilities you may face. This part of a policy is mandatory up to state determined limits. It is your decision to go over and above these figures and make sure that you have large protection afforded to you. It is easier to buy the minimum required to be able to drive and not penalized. However, you should go for the hard choice and buy enough coverage. This is actually the easiest thing to do when you cannot decide what to do. Buy more when you don’t know how much you should buy.

insuring automobilesSecond consideration is for your own losses. If you have just paid a small fortune for a car you would know the logic of insuring it properly. This is a straight forward choice for many motorists as well. Most people are scared of the things that they don’t know and they have no control over. You deal with these scares by covering your losses with an insurance policy. Otherwise no amount of medicine will pay for your losses when you have an accident and have no insurance.

You know how hard it is to deal with other people. There are crooks, liars, criminals and uninsured drivers. When someone doesn’t care about laws or getting caught and continues driving without insurance what chance you have getting your damages paid by such person? Thankfully, there is an insurance coverage for such drivers with no policies. You don’t need to sweat over the risk of being struck by one of those drivers. Let your insurer worry about it and you don’t lose sleep over it.

If you agree with us and understand the importance of buying sufficient automobile insurance coverage there is one more thing you can do to ensure your position. That is to check your policy documents and make sure that you actually bought the cover you wanted.

Mistakes do happen at any one of the stages you go through while arranging policies. You are the owner of the vehicle and the policy and you are the one who instructed the agent or broker. They cannot be held responsible for errors and omissions.