There is Something Strange in the Car Insurance Quotes
Here is a fact that most of you who don’t regularly visit car insurance agencies might not know about. Of all the different insurance products available and given the same set of variables, car insurance quotes are the ones that can vary with the widest spread of prices quotes from one insurer to the next. Meaning, even if you give the exact same details and request for a quote for he exact same coverage, you will get wildly differing quotes from the different insurance companies.
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.
Just to put this into perspective, this practice of focusing on customers that will pay more for their car insurance needs isn’t exactly wrong. It isn’t illegal and is endorsed by the insurance associations. It is a part of marketing customer profiling and is looked upon favorably by almost everyone in the insurance industry. To them, there is nothing wrong with offering an insurance product with a high quotation. The choice is still up to the consumer if they want to proceed with the offer or not. It certainly isn’t the prerogative of the insurance firm to offer quotes that are market competitive. There is nothing wrong with marketing to consumers who are willing to pay the extra premium for whatever reason.
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.
Another type of customer that is regularly taken for a ride by some less than ethical car insurance companies are those that are very loyal to their car insurance companies. Once they have chosen a certain car insurance company they are very unlikely to hop over to another company. What the insurance companies do is increase your premium by just a few percent every year. The increase will be very small so as not to prompt their customer base to search for different insurance quotes but over a few years these compounding increases will cause as much as a 50% increase in premiums over a number of years. It is only when the victimized car insurance policy holder gets a quotation from another company that they realize they have been paying far too much over the years.
As you would have guessed, the morale of the story is to always search around for quotes. This is especially true in the car insurance industry where there are some unsavory practices and unfair treatment for certain types of customers. Besides the point on certain customer profiling, this is an industry where differences in normal car insurance quotes from differing companies can substantially vary.
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.
