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There is Something Strange in the Car Insurance Quotes

Todays Date: December 11, 2018

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.

This is even to the point that some of the smaller car insurance providers specialize in making their living on preying on people who aren’t too careful with their car insurance products and will simply settle for the higher priced policy because they are either too lazy to obtain quotes from other providers or are too trusting of their insurance agents who might get a higher “cut” by referring them to car insurance quotes that are simply too expensive for their coverage. The insurance industry especially for companies that specialize in car insurance products is very competitive now. The bigger institutionalized insurers are generally able to provide cheaper quotes to end users through the sheer volume that they pass through their system. This leaves very little room for the small neighborhood insurance agencies in terms of pricing and coverage. They have to either rely on their better customer service or extra frills that large insurance providers can’t offer. Some have taken this too far and decided to prey on the unsuspecting customers who obtain the first quote and sign up for the car insurance policy without looking around or even looking through the details of the insurance coverage.

Just to compound matters even more, what these insurance companies are doing isn’t exactly wrong. Although some people would rightly consider it preying on the unsuspecting car insurance rookies, the industry actually considers it smart customer profiling. There are no laws against these practices and even industry watchdogs have turned a blind eye to this practice saying that any fault would lay squarely on the arms of the person requesting the car insurance quotation. Looking at it subjectively, as with any purchase, it is up to the customer to find out if they are getting a good quote. It isn’t the prerogative of the insurance provider to give you a quote at the market price. Almost all insurance companies are profit making entities and thus must strive to satisfy this need. Customer profiling is looking at the pool of customers that you can potentially target and find ones that are easily satisfied with whatever quote your provide to them.

This is where the time honored saying of being a prudent customer comes in. It simply calls for you be wise before you settle on a certain car insurance policy. You have to make sure that you aren’t taken advantage off and get as many car insurance quotes available. We can understand that many people are too busy to fill in the many car insurance quote forms and liaise with the many different companies but the benefit of it far outweighs the costs. You will have a much better understanding of what you should be paying for you car insurance policy and you also get a higher level of market understanding.

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.

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.

Visit InsuranceRelease.com to obtain the latests news about quotes for car insurance and other important car insurance related news that you need to know about to get the best deals.

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