The concept of understanding the issue of car insurance may seem trivial but fact is an insurer will only explain the basic concepts of car insurance to a client according to well known insurance expert Strategies, (2003). A client will be notified of the expiry period, how much the insurance costs in case of damage and when & how much to renew it for as stated by Edmonston, (2010). There are some things that an insurer may fail to mention to a client. This article will attempt to analyze deeper car insurance concepts and reveal several hidden information that an insurer chooses to ignore.
Understanding insurance is crucial and the following concepts may not be revealed. An insurer will not tell a client that amount of credit determines the value of insurance (Strategies, 2003). This is relevant to a client seeking car insurance that is credit based. The credit rate should be in line with the insurance rate as said by Edmonston, (2010). There ought to be consideration of other existing variables like place of residence, miles driven and car vehicle involved (Litman, 2004).
Through word of mouth, word quickly travels that a particular brand of insurance is the most reliable as said by O’Connor, (2004). There are cases where a person has been insured by a certain company for more than 10 years and induces another to invest in the same. There are instances where this is fatal as the insurance brand may not be faithful as previously was the case. Prior to renewing insurance, it is vital to compare other insurance claims to ensure that a person gets the best rates (Edmonston, 2010).
Upon filling for insurance, the insurer claims that it is renewable relevant to the agreed period of time (Strategies, 2003). Truth is insurance may cancel anytime or may not be renewed even though payment has been done. A client should have legal counsel present when filling out the insurance forms (Litman, 2004). The legal counsel’s purpose is affirming such concepts like binding contract, renewal status and cancellation of the insurance as said by Litman, (2004). Discrepancies may arise abruptly during an insurance claim hence the need to thoroughly comprehend it before signatures are put down (O’Connor, 2004).
As seen in this article, there are several hidden concepts that insurance may fail to convey to a client. These discrepancies lead to daily battles in courts and wastage of money by unsuspecting clients. It is vital for a client to have such information outlined in this article. A client ought to have market knowledge of different car insurances available (Strategies, 2003).
Edmonston, P. (2010). Lemon-Aid Used Cars and Trucks 2010-2011. Dundurn
Litman, T. A. (2004). Pay-as-you-drive pricing for insurance affordability Pay-as-you-Drive Pricing for Insurance Affordability
O’Connor, R. (2004). UK’s Norwich Union Studies Linking Premiums to Drivers’ Use of Cars. Aug, 18, 1-2.
Strategies, E. B. Inc, “Progressive Insurance: Creating Value via Mobile Field Service”, Apr. 2003. E-Business Strategies, Inc, 1-11.