Have you ever wondered how it’s possible for all the big direct writer Automobile Insurance Carriers to save you money? The truth is that it’s impossible for every insurance company to save everyone money – it’s all just marketing.
While everyone likes to save money, the fact is that no one carrier can always save you money on your personal automobile insurance coverage. But that does not stop these carriers from spending millions of dollars each year advertising that they can save you money on your automobile insurance premiums. The reason they only advertise to “save you money” and rarely – if ever – mention coverage or service, is because they are trying to do one thing and one thing only: they are trying to get you to contact them for a quote.
The hardest part of writing insurance is getting people to take the first step and ask for a quote. So, big direct writer insurance companies use advertising to push the one button that they know will get your attention – who doesn’t like to save money? These carriers understand that if they can “hook” you with the promise of “saving you money,” they can get you to call them for a quote – regardless of whether or not they are in the position to provide the best premiums, advice, and coverage for their customers.
So, the real questions you should be asking yourself are these: Do I really want to deal with a carrier that only promotes itself as being able to saving me money? What about providing me with the best coverage for my needs? What about explaining to me what the various coverage sections on an automobile policy actually provides for me? What about service? What happens when I need to file a claim – will I speak with someone knowledgeable who knows my circumstances? Would you select a doctor, a dentist, or a lawyer solely based on their price – or do you consider important other factors such as their specific expertise and ability to meet your needs?
All automobile insurance carriers price their policies based on numerous factors including (but not limited to) the amount of overall losses they pay out on claims in any given geographical area, the amount of market share they are trying to acquire in any geographical area at any one time, and overall business costs such as operational and marketing expenses. If an insurance company is blowing a huge chunk of income on advertising, is it really feasible that they can also afford to provide the best coverage and advice?
The truth is that a competent independent insurance broker can save you money on your automobile premiums just as often as the big direct writers can – and they provide you with excellent customer service that the big direct writers simply do not. A good independent insurance broker has the ability to shop numerous carriers for you, and will take the time to explain what each coverage option provides; they will do this so that you have all the information you need in order to make an informed decision on what coverages to purchase. Saving money is always a nice thing, but if saving a modest amount of money today is going to result in losing thousands of dollars at the time of an automobile accident – is it really worth it?
A good independent insurance broker will develop a relationship with you and work hard to make sure you have the coverage you really want – and need – at a competetive price. An independent broker will also be a recognizable face who knows you personally, and will be there for you any time you have a question or a concern.