People who have bad credit on their auto insurance are often penalized by the insurance companies. While the government is constantly found bailing out the large companies that are not only wealthy but powerful too, it barely even notices the plight of the common man and the way they are penalized over and over again by the very same companies. Hence, for people with the ‘damaged credit’ tag, online shopping for auto insurance comes as some relief.
It’s much more than what one might think
In a free market economy, auto insurance companies face stiff competition this is good news for the customers as they will get good offers from these companies. However, in most cases where a person has substandard/damaged credit, customers are not really penalized with respect to price penalties; instead, these customers lose the eligibility criteria with respect to discounts and cheap insurance rates that the ones with good credit scores enjoy.
How the online shopping for auto insurance works?
Surfing websites & getting information online is far easier, going personally from one company to another as it is time consuming and cumbersome. Getting quotes from insurance companies online is the best way to go about. But one has to bear in mind the job of the insurance company and if their services are unsatisfactory, one has the freedom to move to another company. For instance, if the auto insurance company does not reward a customer for being a good driver and having a good track record and no accidents etc., the company is expected to give the customer a discount, especially at times when the customer is going through a bad phase financially. If the insurer does not do this, there would be other companies who would be more than happy to have a conscientious driver as their customer as it would help cut down costs.
What one can do to further cut costs?
One has the choice of dropping the comprehensive insurance plan in case of older vehicles that are not road worthy or vehicles that are valued at less than $1000. It would not be worthwhile to pay premiums that far exceed the actual worth of the vehicle in itself. The amount that one has to pay from one’s own pocket (deductible) can be raised, but has to be done before the claim is made. Be cautious while making a new purchase as there are a few models or vehicles that actually qualify for auto insurance that is less expensive. This requires some amount of homework or research from one’s end but will ultimately help in lowering auto insurance costs in the long run.
