AutoMotive Credits

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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.

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.

When you were looking around to change companies it often required numerous lengthy telephone calls to various agents who repeatedly asked the same questions. This was both time consuming and in many cases frustrating. In many cases, it was difficult for the person buying the insurance to compare details of the policies. There are few people in this world who have, when making a claim for either warrantee service or insurance, not been told, “You’re not covered for that it’s in the fine print”.

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.

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.

Discount auto insurance is a viable alternative when budgets are strained. Everyone desires to save money and insurance costs appear to be an avenue in which to cut costs. When purchasing discount auto insurance, the consumer must be able to accurately compare and evaluate all facets of the insurance and know what the policies cover and what they don’t. The company that the insurance is purchased from should be checked with the Better Business Bureau for their performance and any complaints that may have been lodged against them. If any doubt exists in the mind of the consumer, perhaps the best alternative is to consult a local insurance agent or broker and inquire about rates that they can provide. It is entirely possible that those rates are competitive with discount rates available on line. This provides the consumer the peace of mind that a professional has been consulted and both the policy and the insurance company fit the consumers’ needs.

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