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Archive for the ‘Auto Insurance’ Category

Insurance is not the most pleasant thing to deal with as it always tends to be quite complex and full of hidden stones you’ll break your neck with. And by breaking your neck we mean paying more of your money than you would want to. Many people tend to make the very same mistakes when purchasing insurance just because they aren’t quite aware of the hidden catches behind it. To make things a bit easier for you here is a list of 10 most common mistake people make when shopping for insurance coverage on their vehicles. Keep them in mind next time you quote online or contact an insurance company. It will save your time and money!

1. Don’t get only a single quote from a single insurance company bothering that multiple requests may damage your credit rating. They won’t! So get as much auto insurance quotes from different companies as you can! Read the rest of this entry »

Nobody likes making mistakes. But if we think about it, we come to realize that they usually happen because of 0 experiences. Insurance is not to be kidded around with as no matter which one it is – health or automobile one, you have to take it seriously.

What do we usually do before the actual purchase? We spend hours thinking if we really need it and if the money is going to be worth spending. It is correct to do so but it is better to prepare yourself for this important step way before the last minute arrives. You can think anything you want about your insurance – you may consider it a waste of money or on the contrary a very smart investment but in reality you have to do certain things only when you really need them. Of course, in most cases car insurance company can be trusted. But you have to remember to shop around and to compare prices and offers.

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The business of insurance is called underwriting. The company enters into a contract (called a policy) and agrees to indemnify a group of people like you against defined losses. So it uses some heavy duty math to work out the probability of the losses being incurred. It’s called risk assessment and relies on a complicated use of statistics. For vehicle insurance, the companies collect the details from every reported traffic accident in the US looking at the age, sex and occupation of the driver, the make and model being driven, the time of day, the road conditions, and the extent of the damage. The insurers share the information on the current costs of replacement parts and the labor to fit them.

They also manage to talk the health insurance companies into sharing their current costs on medical treatment for those injured in traffic accidents. With all this information, they can make good estimates of the cost of loss, i.e. the total amount they may have to pay out if they insure, say, 100,000 drivers. They take this estimate, add the cost of running the insurance company and a profit margin. This total is then divided between all the 100,000 as their premiums. Some companies divide the total equally so the good drivers subsidize the bad. But the majority adjusts the individual amounts based on the driver’s safety record. That way, each policy holder pays more or less depending on how well he or she drives. This is more fair. Read the rest of this entry »

Ask any auto insurance agent or broker about their business and they will tell you that there’s nothing like the competition you face in this domain. Forget about the good old days when only a couple of agents could work with an entire town, giving everyone the type of insurance they need. Today there could be a hundred of insurance agents fiercely competing for clients even in a smaller town, not to say a big city. The economic recession has made its adjustments in the insurance business too, forcing a large part of insurance agents to work twice as hard in order to make a living out of insurance. Having such a large number of providers and such a few customers willing to purchase insurance, how can an insurance agent stay afloat? Read the rest of this entry »