Today's household budgets are strained by many factors. Rising costs for food, clothing and gasoline cause the household budget to appear to shrink as each day goes past. The consumer is constantly looking for fresh methods to stretch their budget without going without necessities. One attractive area to save money in the annual household budget appears to be insurance costs. Advertisements on television make the availability of discount auto insurance a method of saving. The question is, is discount auto insurance obtained on line worth the monetary savings?
One of the biggest questions that is involved in purchasing insurance is whether or not full coverage is required. If a vehicle is leased or has a lien on it, the lien holder will require full coverage to be maintained on the vehicle. This guarantees the lien holder that they will not suffer a loss if the vehicle is involved in an accident. If the consumer owns their vehicle free and clear, this question is problematic. Liability insurance, which is required by most states, guarantees that should the vehicle be involved in an accident any damage caused by the vehicle is paid for up to the limit of the policy. Collision insurance, which is not required, protects your vehicle when it is damaged by another vehicle. As with collision insurance, comprehensive insurance is not required but protects the vehicle from fire and theft. There are multiple other options available to the insurance purchaser and the purchaser must determine which options fit their needs in the most effective manner.
Prior to the 1990's automobile insurance agents worked directly for a particular company or as an independent broker. The independent broker represented several companies and in theory could compare the companies for you and determine which company fit your needs in the best manner. The advantage to using a local agent or broker was that a one to one relationship was developed between the agent/broker and the consumer. This provided a "security blanket" for the insured.
If a customer was dissatisfied with either their coverage or their broker, a long and involved process needed to be undertaken to make a change. Multiple telephone calls with repetitive questions and answers needed to be made to various insurance agents. This process was both time consuming and in many cases caused frustration for the consumer. It was often difficult for the consumer to compare the coverage offered by the different companies.
The Internet provided insurance companies a vast opportunity. This opportunity was to be able to offer discount auto insurance to a larger market. This larger market provided a broader base for the insurance companies to spread the risk factor over. Additionally, in addition to spreading out the risk factor, the insurance companies, by offering coverage directly to the consumer could eliminate the need to pay commissions to agents or brokers. These two factors allowed the insurance companies to offer discount auto insurance to the general populace.
Prior to purchasing any insurance on line the customer must compare the policies rather than just the cost of the policies. The policies must be compared, including the "fine print", to determine if both the company offering the policy and the policy itself fit the purchaser. This in itself can be a daunting task for the consumer who is not fully versed in all aspects of automobile 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.
Costs are constantly rising often outpacing gains in income. Discount auto insurance is available from many suppliers. When purchasing any discount auto insurance without the aid and assistance of an insurance professional it is required that the consumer carefully evaluate both the policy and the company that is issuing the policy. If the company that is issuing the discount auto insurance is not familiar to the consumer it is recommended that the consumer contact the Better Business Bureau to familiarize themselves with that company. Should the consumer doubt their ability to determine which policy and or company is the right one for them, an insurance professional should be consulted. In many cases the insurance professional can offer comparable rates to the discount auto insurance available on line, which insures that the consumer gets the best coverage for their money.
One of the biggest questions that is involved in purchasing insurance is whether or not full coverage is required. If a vehicle is leased or has a lien on it, the lien holder will require full coverage to be maintained on the vehicle. This guarantees the lien holder that they will not suffer a loss if the vehicle is involved in an accident. If the consumer owns their vehicle free and clear, this question is problematic. Liability insurance, which is required by most states, guarantees that should the vehicle be involved in an accident any damage caused by the vehicle is paid for up to the limit of the policy. Collision insurance, which is not required, protects your vehicle when it is damaged by another vehicle. As with collision insurance, comprehensive insurance is not required but protects the vehicle from fire and theft. There are multiple other options available to the insurance purchaser and the purchaser must determine which options fit their needs in the most effective manner.
Prior to the 1990's automobile insurance agents worked directly for a particular company or as an independent broker. The independent broker represented several companies and in theory could compare the companies for you and determine which company fit your needs in the best manner. The advantage to using a local agent or broker was that a one to one relationship was developed between the agent/broker and the consumer. This provided a "security blanket" for the insured.
If a customer was dissatisfied with either their coverage or their broker, a long and involved process needed to be undertaken to make a change. Multiple telephone calls with repetitive questions and answers needed to be made to various insurance agents. This process was both time consuming and in many cases caused frustration for the consumer. It was often difficult for the consumer to compare the coverage offered by the different companies.
The Internet provided insurance companies a vast opportunity. This opportunity was to be able to offer discount auto insurance to a larger market. This larger market provided a broader base for the insurance companies to spread the risk factor over. Additionally, in addition to spreading out the risk factor, the insurance companies, by offering coverage directly to the consumer could eliminate the need to pay commissions to agents or brokers. These two factors allowed the insurance companies to offer discount auto insurance to the general populace.
Prior to purchasing any insurance on line the customer must compare the policies rather than just the cost of the policies. The policies must be compared, including the "fine print", to determine if both the company offering the policy and the policy itself fit the purchaser. This in itself can be a daunting task for the consumer who is not fully versed in all aspects of automobile 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.
Costs are constantly rising often outpacing gains in income. Discount auto insurance is available from many suppliers. When purchasing any discount auto insurance without the aid and assistance of an insurance professional it is required that the consumer carefully evaluate both the policy and the company that is issuing the policy. If the company that is issuing the discount auto insurance is not familiar to the consumer it is recommended that the consumer contact the Better Business Bureau to familiarize themselves with that company. Should the consumer doubt their ability to determine which policy and or company is the right one for them, an insurance professional should be consulted. In many cases the insurance professional can offer comparable rates to the discount auto insurance available on line, which insures that the consumer gets the best coverage for their money.
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'll save money on your auto insurance by comparing multiple insurance quotes from local agents and national companies
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