The Strange Fact about Car Insurance Quotes
Many people might not know this, but those who work in the insurance line are all but too familiar with this strange trend. Car insurance products have the record for being the most variable price amongst all insurance products even given the same insurance variables. Meaning, even if you supply the different insurance companies with the exact same data and request for a car insurance quote with the exact same coverage, you will get wildly different quotations, some probably doubly expensive compared to the cheapest. All the variation in prices cannot account for anything, purely the profit margin that the insurance companies want to make off you.
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.
The worst part about this is that the insurance firms that do this aren't exactly doing anything wrong. They are simply putting up a trap and you are willingly falling inside. There are no laws against it and even the industry watchdogs are turning a blind eye to this practice. If you actually look at it subjectively, the car insurance provider that offers a car insurance quote that is too high compared to industry standards really isn't doing a crime. It is merely a marketing profiling practice where certain consumers are just happy to pay the extra charges for the ease of not having to look around for other insurance quotations.
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.
Some car insurance companies also prey on clients who are very loyal to their car insurance providers. Some people stick to their car insurance company as if there is some sort of reward program in place. This consumer group is very loyal and will stay with their insurance provider for many years. What some car insurance companies do it increase the premiums ever so slightly every year. This could be in the lines of 3-4% per year. Most of these loyal customers wouldn't mind such a small increase and simply continue with their car insurance policy with their old company. Over the years, through the magic of compounding they don't realize that their car insurance policy has gone up in costs substantially. Some of the time, their insurance costs would have escalated by as much as 50%. It is only when the poor policy holder gets another quote for their car insurance that they realize what a huge increase in price they are paying.
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. - 21393
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.
The worst part about this is that the insurance firms that do this aren't exactly doing anything wrong. They are simply putting up a trap and you are willingly falling inside. There are no laws against it and even the industry watchdogs are turning a blind eye to this practice. If you actually look at it subjectively, the car insurance provider that offers a car insurance quote that is too high compared to industry standards really isn't doing a crime. It is merely a marketing profiling practice where certain consumers are just happy to pay the extra charges for the ease of not having to look around for other insurance quotations.
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.
Some car insurance companies also prey on clients who are very loyal to their car insurance providers. Some people stick to their car insurance company as if there is some sort of reward program in place. This consumer group is very loyal and will stay with their insurance provider for many years. What some car insurance companies do it increase the premiums ever so slightly every year. This could be in the lines of 3-4% per year. Most of these loyal customers wouldn't mind such a small increase and simply continue with their car insurance policy with their old company. Over the years, through the magic of compounding they don't realize that their car insurance policy has gone up in costs substantially. Some of the time, their insurance costs would have escalated by as much as 50%. It is only when the poor policy holder gets another quote for their car insurance that they realize what a huge increase in price they are paying.
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. - 21393
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Want to find out more about car insurance quotes, then visit Ryan Parker's site on how to choose the best quotation for your needs.
posted by X - Men @ 2:00 AM
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