Too Cheap for Comfort
Posted by: info | September 8, 2007
Have you ever heard the saying if it sounds too good to be true than it probably is? This saying has held true for about a century now. This applies to auto insurance as much as anything else. How can this apply to auto insurance? How does a driver find out if they’ve found a deal to good to be true?
Have you seen an ad like auto insurance for $20? Read the highlighted previous post and find out why it is almost impossible to get coverage at this price. Even if you find a very cheap rate, you could still get shafted in the long run. These fly-by-night companies could be here one day and the next day they’re gone. How much trouble will a driver have in getting a refund? How will a driver come up with money for a down payment to obtain a new policy?
The moral of the story about if something is just too good to be true is, sometimes paying more can be less. Does this make sense? If a consumer who pays $10-$40 more a month for a policy that has sound coverage from a highly rated company can end up saving big money in an accident. A higher rated company has a lot more resources and employees. Some of the higher rated companies have agents on the clock 24 hrs. a day. This enables them to get vehicles estimated, repaired and on the road much faster. Remeber time is money.
A driver should also keep in mind that having a trusted auto insurance company can ease any and most all worries. This helps reduce stress in the event of an accident or any need to call an insurance company.
However, the one great thing about the insurance industry is the regulation the government is involved with. The government forces companies who want to offer auto insurance to meet or exceed minimum state requirements. Therefore, buying insurance from a small company can still be done and may save consumers money. As a driver it is up to you to educate, research and learn the different coverage options. Agents aren’t forced to sell you certain coverages. These unknown coverage options could very well be something you may need based on your driving habits.
Posted in: Insurance, General |
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