As with any consumer looking to lower price goods or services, there is a healthy level of skepticism on how good something can be if the price that is asked for is low. This also extends to the car insurance industry as clients look to low cost car insurance products with a healthy level of skepticism. Many think that car insurance products that are sold at lower costs have some sort of inherent problem. We can certainly understand this concern and we hope that we can guide potential users in the right direction with regard to cut priced car insurance products.
The first problem that has to be addressed is the wrong impression of low cost car insurance policies. Although some cheaper car insurance policies are bad, certainly not all are. The same can be said for full priced car insurance policies, some are good and some are bad. To write-off cheap car insurance policies all together is not a wise thing to do as there are so many small car insurance companies out there that can offer acceptable levels of coverage together with cheap prices. You would be willingly precluding yourself from getting good deals, which, to be frank, is a dumb thing to do. Instead it would be wiser to recognize the good low cost car insurance providers.
Lets go into the general characteristics of budget car insurance providers. This is a very good way to subjectively tell if you are approaching the right company as almost all low-cost car insurance agencies conform to these characteristics. The most obvious of these characteristics is the lack of a substantial advertising budget. Companies that focus on low cost insurance are normally keenly aware of their expenses and keep it under very tight constraints. As a result of this it is more than likely that the these insurance providers would not be very well known. They would probably advertise in local municipal papers, sometimes city papers but very rarely will do anything country wide. You will never see them on the TV or any other form of expensive mass media.
Budget insurance agencies that provide low cost car insurance coverage will almost always be a bare-bones operation. You should go down and have a look at their place of business to find out how they operate. Low cost car insurance providers are generally very cautious when it comes to spending money for anything. As a result of that most have offices that are either run-down or are simply too cramped for the amount of work to be done or number of clients to service. These car insurance agencies also do not have fancy addresses in the CBD but instead set up shop in cheaper neighborhood commercial zones. There isn't an air of pretentiousness with them as everything is "down to business" with them.
Another common characteristic is that low cost car insurance providers almost always are smaller companies that are striving to make themselves bigger. This is evidenced by the way and the aggression in which these low cost providers in chasing customers. You will find that they have a very flat organizational structure and they have a few too many customers per manager. The main purpose of this is to keep administration costs to a minimum and pass on the savings to the customers in the form of lower premiums.
Most low cost car insurance companies are also new start-up companies which have only been around for a few years. It is very rare that you will find an old company that does low cost insurance deals. If you pay a visit to their office you will be able to find out if this is the case. There are however exceptions, the first is if a established insurance company is going through a rebranding exercise, they could be expanding their market reach downwards and offering very good deals to entice new customers their way. If you have identified one of the low cost car insurance providers that is just a start-up, it is your responsibility to find out how trustworthy they are and if their pay-out ratios are good. Start-up insurance companies have a bad habit of giving too good a deal in the front-end and being unable to cover their end of the bargain at the back-end.
Another feature of true low cost car insurance providers is the lack of any attached features or "deals" that come bundled with your car insurance quote. These budget car insurance providers will just sell you're their coverage at a discounted price and leave you be. Most of the time the staffs of these companies are so busy and have so many clients per manager that they simply don't have the time to slowly entice you to sign up with other products or offers. Instead they just rely on the cheap price of their car insurance products to entice customers to sign-up.
It is important to realize that low cost car insurance companies are a totally different institution to the full service insurance providers. They will give you what you want at the best prices they can and nothing more. There are no frills and the customer service is generally horrible. Some people can stand this while some would rather the "niceness" of a full service insurance company. The choice is yours. - 29969
The first problem that has to be addressed is the wrong impression of low cost car insurance policies. Although some cheaper car insurance policies are bad, certainly not all are. The same can be said for full priced car insurance policies, some are good and some are bad. To write-off cheap car insurance policies all together is not a wise thing to do as there are so many small car insurance companies out there that can offer acceptable levels of coverage together with cheap prices. You would be willingly precluding yourself from getting good deals, which, to be frank, is a dumb thing to do. Instead it would be wiser to recognize the good low cost car insurance providers.
Lets go into the general characteristics of budget car insurance providers. This is a very good way to subjectively tell if you are approaching the right company as almost all low-cost car insurance agencies conform to these characteristics. The most obvious of these characteristics is the lack of a substantial advertising budget. Companies that focus on low cost insurance are normally keenly aware of their expenses and keep it under very tight constraints. As a result of this it is more than likely that the these insurance providers would not be very well known. They would probably advertise in local municipal papers, sometimes city papers but very rarely will do anything country wide. You will never see them on the TV or any other form of expensive mass media.
Budget insurance agencies that provide low cost car insurance coverage will almost always be a bare-bones operation. You should go down and have a look at their place of business to find out how they operate. Low cost car insurance providers are generally very cautious when it comes to spending money for anything. As a result of that most have offices that are either run-down or are simply too cramped for the amount of work to be done or number of clients to service. These car insurance agencies also do not have fancy addresses in the CBD but instead set up shop in cheaper neighborhood commercial zones. There isn't an air of pretentiousness with them as everything is "down to business" with them.
Another common characteristic is that low cost car insurance providers almost always are smaller companies that are striving to make themselves bigger. This is evidenced by the way and the aggression in which these low cost providers in chasing customers. You will find that they have a very flat organizational structure and they have a few too many customers per manager. The main purpose of this is to keep administration costs to a minimum and pass on the savings to the customers in the form of lower premiums.
Most low cost car insurance companies are also new start-up companies which have only been around for a few years. It is very rare that you will find an old company that does low cost insurance deals. If you pay a visit to their office you will be able to find out if this is the case. There are however exceptions, the first is if a established insurance company is going through a rebranding exercise, they could be expanding their market reach downwards and offering very good deals to entice new customers their way. If you have identified one of the low cost car insurance providers that is just a start-up, it is your responsibility to find out how trustworthy they are and if their pay-out ratios are good. Start-up insurance companies have a bad habit of giving too good a deal in the front-end and being unable to cover their end of the bargain at the back-end.
Another feature of true low cost car insurance providers is the lack of any attached features or "deals" that come bundled with your car insurance quote. These budget car insurance providers will just sell you're their coverage at a discounted price and leave you be. Most of the time the staffs of these companies are so busy and have so many clients per manager that they simply don't have the time to slowly entice you to sign up with other products or offers. Instead they just rely on the cheap price of their car insurance products to entice customers to sign-up.
It is important to realize that low cost car insurance companies are a totally different institution to the full service insurance providers. They will give you what you want at the best prices they can and nothing more. There are no frills and the customer service is generally horrible. Some people can stand this while some would rather the "niceness" of a full service insurance company. The choice is yours. - 29969
About the Author:
Please visit us at http://www.insurancerelease.com to educate yourself about car insurance and get the most accuratecar insurance quotes for your needs.
