Use Your Head Not Heart


Here’s the thing, when Americans fall in love with a brand, they tend to stick to it no matter what. Unfortunately, this display of loyalty isn’t benefiting them so much, and it tends to be a one-way relationship. Corporations are not people, they don’t have feelings and as far as their public image is concern, they do everything to build it up. Most of them only care about their bottom line; don’t you think it is time to think about yours?

Unfortunately, many drivers are still living in this paranoia and with inertia making the whole situation worst. It’s funny how many of them desperately want to get the lowest car insurance rates yet few of them actually do their homework.

The Competition

There’s a fierce competition out there in the insurance arena. Monopolies grew in a multitude over the years, but the sad truth is that insurance industry has been one of its exceptions.

We have seen big corporations that once started as an insurance company but turned out to control numerous business organizations that have nothing to do with insurance anymore. Of course, there are small and regional auto insurance companies and those in between them. Every single day, these insurance entities fight to gain additional customers for the consumer dollar.

Do you pay your insurance dues monthly or bi-annually? Doesn’t matter, whatever you do, you’re still going to renew it twice a year. You can actually take advantage of it, by switching to a more competitive insurance company offering more incentives at a lower cost. This would allow you to save hundreds of dollars each year.

Insurance Marketing Ploy

A marketing strategy as old as our civilization continues to proliferate into the minds of our chief executive officers from huge multinational companies down to the common street vendors. The same game that Babylonians played thousands of years ago: convince customers with those dirt-cheap prices and then raise them once they are in.

Auto insurers are not an exception because the majority of them use this tactic all the time; attract new customers with irresistible insurance rates and then later on increase them.

Certain factors have led to the increase of car insurance rates, including the demand for increasing their bottom line particularly the health care industry that will take care of the people’s health needs as well as the number of road mishaps that is occurring on the road.  There’s also the increasing number of fraud claims from desperate people trying to get money due to the recent economic crisis.

Although these facts are quite alarming, you shouldn’t not feel that way as long as you keep your driving records squeaky clean, no moving violations whatsoever and no large claims ever made.  If that’s you, then you should take time to look for affordable rates on the Internet.

Don’t forget to haggle!

If you have been a good customer, no claims made for the past years or better yet no serious violations in the past, your present insurer will be more than glad to offer you better quotes because they don’t want you to deal with their competitors.

Lastly, keep in mind that a cheaper policy doesn’t always mean it’s the best policy for you. For instance, if you live in a small town with a very low incidence of crime, theft coverage might not be necessary.