Auto Insurance Secrets

Posts Tagged ‘car insurance quote’

There is something very fishy going on in the car insurance industry of late. A recent study by a insurance watchdog organization found that of all the different types of insurance products available, car insurance products have the greatest price variance given the same set of variables. To the lay man, if you use the same set of information about your lifestyle, where you park your car, your workplace etc and use that information to get quotes for the same coverage from different companies you will get huge differences in their quotations for car insurance. Sometimes the difference between the lowest to the highest can be as much as 100%. The coverage and risk figures are exactly the same; the only thing that can account for the difference in price is how much money the insurance company wants to make off their clients.

Some smaller companies that specialize in providing coverage for car insurance can even specialize in this type of practice. In effect what they do is prey on people who only ever get one quote for their car insurance needs. A small number of clients are too busy and will simply settle for a more expensive car insurance quote because they don’t know that there are much cheaper options out there. This may also be the case because their insurance agent has recommended their service. Little do they know that the insurance agent gets a bigger commission by referring the overpriced insurance to their clients.

Just to put this into perspective, this practice of focusing on customers that will pay more for their car insurance needs isn’t exactly wrong. It isn’t illegal and is endorsed by the insurance associations. It is a part of marketing customer profiling and is looked upon favorably by almost everyone in the insurance industry. To them, there is nothing wrong with offering an insurance product with a high quotation. The choice is still up to the consumer if they want to proceed with the offer or not. It certainly isn’t the prerogative of the insurance firm to offer quotes that are market competitive. There is nothing wrong with marketing to consumers who are willing to pay the extra premium for whatever reason.

This is where the classic saying “buyer beware” comes into its own. Insurance agencies like any other business are a profit making entity and their main aim is naturally to take as much money off your hands without breaking the law. It is the consumer’s own place to say if they are happy with the quotation they receive for their car insurance or if they want to decline it in favor of another better priced alternative. It is understandable that people are too busy these days to fill in the countless forms and liaise with the many different car insurance companies just to get a few quotes. The benefits of doing so however are far greater than the costs. You will understand the car insurance market better and also get a much better deal if you just spend a few extra hours looking around.

Another type of customer that is regularly taken for a ride by some less than ethical car insurance companies are those that are very loyal to their car insurance companies. Once they have chosen a certain car insurance company they are very unlikely to hop over to another company. What the insurance companies do is increase your premium by just a few percent every year. The increase will be very small so as not to prompt their customer base to search for different insurance quotes but over a few years these compounding increases will cause as much as a 50% increase in premiums over a number of years. It is only when the victimized car insurance policy holder gets a quotation from another company that they realize they have been paying far too much over the years.

The lesson to be learned here is that it is very important to be prudent with your car insurance policies. Be prudent not only when you are getting your car insurance policy the first time, but always be on the look-out for other car insurance quotes so you know that you are always getting a good deal.

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Since having your car insured is so important for your financial safety, you need to do a lot of research for coming up with a car insurance policy which perfectly suits your needs. Comprehensive planning and some wise thinking and effort on your part can spare you from making a lot of expenditure on your policy.

Purchasing your car is the right time to begin this process. Prior to picking a car model, you must deliberate upon the type of car insurance that is suitable for that model, and how costly it would be. It is advisable that you ask for online quotations from many car insurance providers, since these rates are more affordable than the ones you find offline.

You should remember that mostly making an one-time payment of the year’s premium is more cost effective than making payment on a monthly basis, as you save on the interest that is levied on monthly instalments. Thus, it is a good idea to pay the entire amount at one time when you are buying insurance.

Expenses on car insurance can also be reduced by maintaining a good driving record. In most countries, the driving record is the primary consideration for firms while determining the premium of car insurance, as it makes them aware of the level of risk they are undertaking. Installing high-tech equipments like anti theft systems can also get you lower premiums from insurance providers.

You must also continue being a customer of your existing insurance provider, as most firms charge lower premiums from old policyholders. But you should know the latest insurance plans present in the market, and must ask for discounts when you renew your policy.

Without ignoring the cost factor, you ought to opt for a good policy which will cover damages from unpredictable disasters such as natural catastrophes, robbery, road accidents etc. A carefully chosen motor insurance policy, which caters to your needs and is easy on your pocket, is a good investment that will protect you against untoward incidents.

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There are a lot of car insurance firms in the market, each claiming to be the least expensive and the best. It is therefore essential to do some ground research and follow some basic guidelines before you buy car insurance.

You must first of all estimate how much insurance you need. If you are in a moderate risk group, it might be advisable to go for lesser insurance. Even though it may come with certain risks, it will be cheaper and there would hardly ever be situations where you will feel sorry for your decision.

It is also vital that you consider the type of car insurance that is affordable for you. A number of firms provide discounts and incentives, and you should be able to negotiate the amount of coverage you can obtain for the price you are ready to pay. But a company that has the best car insurance quote might not prove to be the most beneficial if you ever meet with a car accident. So you should check the terms and conditions of the policy and also know what the annual or monthly premiums are.

The kind of service a car insurance company offers greatly depends on the kind of people it uses and how sensitive they are about the needs of the customers. If your insurance agent is interactive, qualified and well-informed, then you are in safe hands.

Another essential thing to do would be to conduct a quick study on the past performance of the car insurance firms that you believe might suit your needs. Their position and reliability must be known to you, which can be deduced by looking at their market performance or information from public sources. You can also refer to the internet for feedback and comments made by the public about the insurance firm on various online forums and blogs.

You should have all your queries answered by the car insurance company prior to the final purchase and must also get information on what you should do in case of a car accident. In the end, you must get a deal that fits well into your scheme of things.

Find out more about reasonably priced Motor Insurance from Cosmo Automobiles Singapore and get a free Car Insurance Quote in an instant.