Insurance premiums for automobiles seem to rise every year. When the annual notice of renewal arrives in the mail, there is often sticker shock at how much the premium has gone up. Is there a way to save money with discount auto insurance? The television advertisements for discount auto insurance appear to make it attractive, but is it a right fit for you?
Liability, Collision and Comprehensive are the three fundamental types of auto insurance. If the consumer used a loan to acquire the vehicle, then the holder of the loan will require that all three cover the vehicle. This is what is known as full coverage. Liability covers any damage done by the vehicle. Collision covers any damage done to the vehicle by another vehicle. Comprehensive covers damage done by fire or theft of the vehicle. In the United States, most states require that liability coverage be obtained in order to register the vehicle. If the vehicle is owned without lien, the owner of the vehicle may choose to have only liability coverage. This however may cause the owner of the vehicle to shoulder the entire cost of repairing the vehicle when it is involved in an accident. In addition to the three fundamental types of coverage additional coverage may be obtained from most insurance companies at a greater premium paid.
The traditional method of purchasing auto insurance was either through a local agent or broker. The difference between an agent and a broker is that the agent works directly for a specific insurance company. A broker can represent several companies in the coverage that they offer. These agents and brokers are paid by the insurance companies for the policies that they write and renew. In many cases discounts can be obtained from these agents and brokers for combining policies with a specific company. An example of this is the combination of insurance for the home and for the auto. The agent or broker works to develop the best policy for the individual. A relationship is formed which insures that the insurance company will pay the agent or broker when the policy is renewed with the agent or broker.
If a consumer was interested in changing coverage or agents, the process was often long and involved. Multiple phone calls had to be made to various agencies and repetitive answers had to be provided. This time consuming and often frustrating process dissuaded many from changing companies and or agents. It was often difficult for the consumer to compare policies and to insure that the "fine print" on all of the policies was the same.
In the late 20th century, insurance companies, recognizing the growth of the Internet created specific programs to allow consumers to get insurance quotes on line. This method of allowing the consumer to get a quote for a product allowed the product, insurance, to be offered at a discounted rate. The insurance company not having to pay a commission to the agent primarily generates this lower rate. Another factor in the ability to offer a discount rate for insurance is that by offering quotes on line, a greater number of customers can be attracted which allows for better economies of scale for the insurance company.
All auto insurance policies are not created equally. Many policies while appearing to offer comparable coverage may in fact have exclusions written into them. It is up to the consumer to, when purchasing discount auto insurance, on line carefully evaluate the policies and check for any exclusions in the policies. This can be a difficult task for the consumer who is not well versed in auto insurance.
Auto insurance is quite simply another product that is sold on the open market. A multitude of prices and options are often available for what on the surface appears to be the same product. There are consumers who will purchase the lowest priced product simply because it is the lowest price. There are other consumers who will purchase a product simply because of the name recognition of the supplier of the product. Name recognition is an important factor. The reliable brand name often means a quality product that is combined with quality customer service. Maytag washing machines are an example of a reliable brand name. Maytag washing machines seldom require service yet, when they do, the Maytag service is known to be prompt and efficient. The purchasing of a brand name auto insurance, even at a discount rate may be higher than that obtained from other companies. However the brand name insures reliability and prompt efficient customer service when an accident and resulting claim occurs.
In today's market, prices of all goods and services seem to be rising while income appears to fail to keep up with the rising prices. When household budgets are analyzed, the one area that appears to offer the best opportunity to save money is auto insurance. Prior to purchasing discount auto insurance, the consumer must carefully analyze all of the policies offered. While on the surface they all may appear to provide the same coverage while in reality the fine print at the bottom of the policy may have significant exclusions. Prior to purchasing any discount auto insurance the consumer should carefully evaluate the company offering the insurance. This evaluation can be done through the Better Business Bureau to determine the performance of the particular company. If any doubts exist about the coverage offered, perhaps a local insurance agent or broker should be consulted. In many cases, the local agent or broker can provide discounted rates that are competitive with the discount auto insurance available on line. This comparison allows the consumer to be assured that the discount auto insurance that they are purchasing fits their particular needs.
Liability, Collision and Comprehensive are the three fundamental types of auto insurance. If the consumer used a loan to acquire the vehicle, then the holder of the loan will require that all three cover the vehicle. This is what is known as full coverage. Liability covers any damage done by the vehicle. Collision covers any damage done to the vehicle by another vehicle. Comprehensive covers damage done by fire or theft of the vehicle. In the United States, most states require that liability coverage be obtained in order to register the vehicle. If the vehicle is owned without lien, the owner of the vehicle may choose to have only liability coverage. This however may cause the owner of the vehicle to shoulder the entire cost of repairing the vehicle when it is involved in an accident. In addition to the three fundamental types of coverage additional coverage may be obtained from most insurance companies at a greater premium paid.
The traditional method of purchasing auto insurance was either through a local agent or broker. The difference between an agent and a broker is that the agent works directly for a specific insurance company. A broker can represent several companies in the coverage that they offer. These agents and brokers are paid by the insurance companies for the policies that they write and renew. In many cases discounts can be obtained from these agents and brokers for combining policies with a specific company. An example of this is the combination of insurance for the home and for the auto. The agent or broker works to develop the best policy for the individual. A relationship is formed which insures that the insurance company will pay the agent or broker when the policy is renewed with the agent or broker.
If a consumer was interested in changing coverage or agents, the process was often long and involved. Multiple phone calls had to be made to various agencies and repetitive answers had to be provided. This time consuming and often frustrating process dissuaded many from changing companies and or agents. It was often difficult for the consumer to compare policies and to insure that the "fine print" on all of the policies was the same.
In the late 20th century, insurance companies, recognizing the growth of the Internet created specific programs to allow consumers to get insurance quotes on line. This method of allowing the consumer to get a quote for a product allowed the product, insurance, to be offered at a discounted rate. The insurance company not having to pay a commission to the agent primarily generates this lower rate. Another factor in the ability to offer a discount rate for insurance is that by offering quotes on line, a greater number of customers can be attracted which allows for better economies of scale for the insurance company.
All auto insurance policies are not created equally. Many policies while appearing to offer comparable coverage may in fact have exclusions written into them. It is up to the consumer to, when purchasing discount auto insurance, on line carefully evaluate the policies and check for any exclusions in the policies. This can be a difficult task for the consumer who is not well versed in auto insurance.
Auto insurance is quite simply another product that is sold on the open market. A multitude of prices and options are often available for what on the surface appears to be the same product. There are consumers who will purchase the lowest priced product simply because it is the lowest price. There are other consumers who will purchase a product simply because of the name recognition of the supplier of the product. Name recognition is an important factor. The reliable brand name often means a quality product that is combined with quality customer service. Maytag washing machines are an example of a reliable brand name. Maytag washing machines seldom require service yet, when they do, the Maytag service is known to be prompt and efficient. The purchasing of a brand name auto insurance, even at a discount rate may be higher than that obtained from other companies. However the brand name insures reliability and prompt efficient customer service when an accident and resulting claim occurs.
In today's market, prices of all goods and services seem to be rising while income appears to fail to keep up with the rising prices. When household budgets are analyzed, the one area that appears to offer the best opportunity to save money is auto insurance. Prior to purchasing discount auto insurance, the consumer must carefully analyze all of the policies offered. While on the surface they all may appear to provide the same coverage while in reality the fine print at the bottom of the policy may have significant exclusions. Prior to purchasing any discount auto insurance the consumer should carefully evaluate the company offering the insurance. This evaluation can be done through the Better Business Bureau to determine the performance of the particular company. If any doubts exist about the coverage offered, perhaps a local insurance agent or broker should be consulted. In many cases, the local agent or broker can provide discounted rates that are competitive with the discount auto insurance available on line. This comparison allows the consumer to be assured that the discount auto insurance that they are purchasing fits their particular needs.
About the Author:
If you liked this article you might like Joe's website where you can get more Discount Auto Insurance tips to help you save money when it's time to get Free Insurance Quotes. By following either link back to Joe's website you will save money on your auto insurance by comparing multiple insurance quotes from local agents and national companies
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