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?
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.
The growth of the Internet in the late 20th century provided insurance companies a medium to both attract new business and reduce costs. The insurance companies provided a vehicle by which the consumer could get quotes on line. This provided a greater market base for the insurance companies and allowed the insurance companies to offer discount auto insurance rates. This reduction in rates often reflected the cost savings of not having to pay commissions to agents or brokers. Another factor in the discount auto insurance rate was that the insurer could have a larger base of people from which to collect premiums, which allowed lower rates to be offered.
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.
When purchasing discount auto insurance, there are several factors that the consumer must be aware of. The first and foremost is that auto insurance is the same as any other product purchased. There are few people who will choose the lowest priced product, no matter what the product is. A recognized brand name often means a great deal when a product is purchased. If given the choice of a Sony plasma television and an ABC plasma television, many will choose the Sony at a greater cost over the ABC. This brand name acceptance often reflects the quality of product even if the cost is higher. Large nationally recognized auto insurance companies often have higher rates simply because they provide better more efficient customer service. If a claim is made to a smaller less efficient auto insurance company the claim may not be settled without extensive correspondence with that company.
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.
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.
The growth of the Internet in the late 20th century provided insurance companies a medium to both attract new business and reduce costs. The insurance companies provided a vehicle by which the consumer could get quotes on line. This provided a greater market base for the insurance companies and allowed the insurance companies to offer discount auto insurance rates. This reduction in rates often reflected the cost savings of not having to pay commissions to agents or brokers. Another factor in the discount auto insurance rate was that the insurer could have a larger base of people from which to collect premiums, which allowed lower rates to be offered.
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.
When purchasing discount auto insurance, there are several factors that the consumer must be aware of. The first and foremost is that auto insurance is the same as any other product purchased. There are few people who will choose the lowest priced product, no matter what the product is. A recognized brand name often means a great deal when a product is purchased. If given the choice of a Sony plasma television and an ABC plasma television, many will choose the Sony at a greater cost over the ABC. This brand name acceptance often reflects the quality of product even if the cost is higher. Large nationally recognized auto insurance companies often have higher rates simply because they provide better more efficient customer service. If a claim is made to a smaller less efficient auto insurance company the claim may not be settled without extensive correspondence with that company.
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 site you will save money on your auto insurance by comparing multiple insurance quotes from local agents and national companies
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