Factors that generally contribute to the premium rate have been made public. For instance, it is common knowledge that credit history is considered to determine the paying capacity of the applicant who wishes to be insured. Age, kind of car, driving mileage and surrounding neighborhood are also the basic factors affecting rates of premium. But when one considers the business aspect of this practice, insurance companies only measure premiums based on how well the company is doing financially. If there are losses, these insurers tend to pass the burden to clients by raising premiums to compensate for losses.
For a simple individual this may sound disheartening. Knowing that this is a normal business practice, however, people are driven to find ways to get discounts. This is where free auto insurance quotes come in. Buyers are given the chance to compare offers and choose one company that can provide the best coverage for the lowest price.
It used to be that collecting free auto insurance offers is a tedious and time-consuming activity. Now quotes are made easily available via the internet. With just a few clicks and entry of some pertinent data, a quote is returned. Buyers will just have to be extra careful about which websites to deal with because fake and fraudulent sites also abound.
Since selling is the main business for insurance companies, making free auto insurance quotes available for everyone is also a way of generating sales and profits. These free quotes give advantages to the consumers. These days, consumers have become smarter buyers, weighing down options and forcing companies to bend a little. With looming bancruptcy scares and tough competition, these companies cannot afford bad publicity anyway, so they really need to give discounts where available and qualified.
Free auto insurance offers can get very deceiving, too, so buyers are advised to become very discerning when reading policies. You might be surprised to know that while some companies do give huge discounts, this is just an initial rate that can drastically change throughout the contract duration. Again, companies do work to gain profits, that is their foremost goal. Also check for the lock-in period or at least the listed rate of increase per year.
Depending on whose point of view you are standing, it seems that quotes are one sided. But in reality, it can work both ways. Clients are given the chance to find a company that will provide the best service for a minimum cost and the insurance company can place the best foot forward and generate sales.