Many motorists may not have been in the market for a better deal vehicle insurance for some time. This is probably one of those things hard to understand. According to statistics, most people are so happy with their carriers that they never even bother to get alternative quotes. Maybe, if you do not know what else out there it is easy to be satisfied.
Then, you can receive range of quotes for the exact risk. A much reputable insurer can come up with a much cheaper rate than what an unknown company is quoting. Perhaps, this is why the reputable company is spreading across the country when the obscure one will remain like that for a long time. There are many companies out there who are not careful with the way they run the business and use the premiums collected and come back and ask for more. These topics are extensively discussed on auto insurance forum run alongside this blog.
One of the most interesting things about insurance companies is the way they react to competition. They send a renewal note to a policyholder. When the policyholder goes and gets much better terms from a rival, miraculously current insurer can cut the rate as much as thirty percent. The question is; why they did not offer a better renewal quote in the first place. Probably, the answer is why should they when most of their customers never bother to compare.
Quite a few people are lead to believe that loyalty is a good thing and gets rewarded all the time. Then, why the companies offer better premiums to new customers. Are the old customers birds in the cage? It is easy to answer why they have to provide great deals for new applicants. They are currently with another insurer and they have to be tempted with appealing premiums.
However, it is hard to understand why older policyholders allow to be taken advantage or keep buying the gimmick of loyalty gets rewarded. It is not even a common position in this fast changing world. You have to ask for discounts if you want lower car insurance costs. Insurers will not offer them to you automatically because they will be taking away from shareholders and giving it to you, if they do.
Another interesting point is what happens when you have an accident. You may be a great driver. In fact you may not have had any claims for the last fifteen years. However, as soon as you have one claim most insurers will not like to go anywhere near you. How come one unlucky accident in a long time can make a good driver a bad one? Luckily, while some companies will be asking more than double the premiums, there will be few of them that offer acceptable rates.
Motorists are lead to believe to some of the convenient statements like “you cannot trust cheaper car insurance quotes”. There are many good reasons for being able to offer better premiums. A well-run company can undercut the competition or a badly run company likes to pass their failures onto their customers. Get a few quotes and you will see that generally the top insurers will be quoting the best rates. Always have a look at it yourself before believing to any statement.