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Jul '12

Auto Insurance Companies in the USA

There are conflicting opinions about this subject. The most misguided of them is thinking that the auto insurance quotes will be similar regardless of which company you go. Some people keep suggesting that rates are checked by state insurance commissioner and therefore cannot be much different. These checks have no effect on the competitiveness of the rates. Otherwise, the state might as well set the rates.

The best way of testing competitiveness is to get quotes from various companies and see how the premium offers would vary. By doing that you clear yourself from theoretical, academic or street arguments and start dealing with black and white figures. You offer the same particulars to several companies’ online quote forms and see the quotes coming. Since the details given are all the same the only difference would be the price.

These studies has already been carried out by others and they found that even for basic liabilities coverage the premium difference can be as much as thousand dollars between two top ten companies. If an auto insurer takes a particular objection to insuring you the rates they offer will tell this load and clear. In that case, your best option is to look somewhere else.

choosing a car insurerToday, companies are using so many different factors that it is hard to tell which company will offer you the best rate. Company A might find your credit score too low, Company B may not like you because of claim history and Company C may find your zip code undesirable. This is in fact what is really going on when you are getting quotes. You are either being priced out or invited in.

There is nothing personal either. A computer is going to decide how much you should be charged based on the information you provided. That is why it is highly advisable that you do not start liking a particular company before you see their quotes. Rather you choose out of the best 3 quotes eliminating the ones coming way off from the rest of the premiums offers.

Normally, the premiums for the same type of risk should be coming around twenty percent bracket. In other words, the cheapest one should be about twenty percent cheaper than the most expensive one. This is the sign of a competitive market. The prices should come together as the most expensive ones are priced out of the market and forced to cut the rates.

This does not seem to happen in the auto insurance market. An applicant can get really wide range of quotes. It is maybe complicated for us to understand why this is the case. In fact, we do not even need to understand why this is the case. All we need to know is that you could be saving hundreds of dollars when you find a highly competitive insurer.

Buying auto policies without comparing quotes is being naïve about the whole situation. You should really look after your wallet since the money spent will never be coming back to you no matter how desperately you will need it in the future.

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