Car Insurance


Though the title of this section says Car Insurance, it holds good also for Motor Insurance, Auto Insurance, Bike Insurance or Vehicle Insurance.

The car insurance is established to mitigate the sufferings caused by the financial loss due to the behavior of the negligent motorists. Now it is mandatory almost throughout the world to insure the motor vehicle when it is on road.

The premium for the car or other motor vehicle has been one of the most talked after and widely debated topics. The premium varies among the different insurance companies, albeit in small amount and that is where the business acumen comes into play.

With the rapid explosion in the auto and motor industry consequent to industrialization and subsequent economic development, the car insurance has achieved tremendous growth and there are various insurance companies competing with each other in offering cheap car insurance quotes that can be compared with their competitors.

There was a period when auto insurance was not popular or legally enforced and this resulted in injuries or even death because of the negligence of the motorists and the victims or their survivors could not get financial redress.

What are the important points to look for in an auto, motor or car insurance company?

Most of the insurance companies want to compete with other insurance firms in attracting the prospective clients into purchasing their products.

Four points are considered important while choosing an insurance company. What are they?

  1. Premium : This is the very important factor to look for as almost all the customers are price sensitive and when offered premium is the lowest in its category and competitive, naturally more and more customers would likely to choose the option.
  1. How strong the insurance company you have chosen in terms of financial means? A stronger financial status of the insurance company will improve the image of the insurance firm in the minds of the prospective customers. It is normal for any one to desist away from a weak and about to collapse insurance firm which is on the path to insolvency.
  1. The nature of the service provided to its clients. Service is the watchword in the insurance business and if your insurance firm believes in better customer service, you will naturally recommend it to others. By this way, the popularity of the firm spreads and so is the business involved. The opposite too happens in a better manner and when the service is not up to the mark, you will definitely advice your friends to avoid those firms. From these points, one can understand how effective the client service is!
  1. The last but not the least point is the role played by the insurance agents. Many big companies do not involve themselves directly into the insurance business and just to fill up the blank, they employ the agents who bridge the gap between clients and the company, especially so in the auto or car insurance which forms the lucrative market among all the business. The car insurance agent is the representative of the insurance company and supposed to possess in depth knowledge about different products available with the company and shall be an expert in explaining and selling the products. An efficient agent is not only an asset to the insurance company but also satisfies the needs of the customers.

Why should I take car insurance and what is the urgency involved in it?

An auto or car insurance is a must when you take your car on roads. Most states have their own regulations to see that the cars should be off road without insurance. The car insurance offers protection or acts like a cushion in saving you a lot of money in case of damage to personal property, personal injury, medical expenses involved in the treatment of the injured or to meet the exigencies during death.

How the car insurance companies determine the auto insurance quotes and car insurance prices?

Different states have their own legislations and accordingly the calculation of car insurance quotes and auto insurance prices vary depending on the states. But seven parameters are considered important in deciding your car insurance. They are

  • Personal injury protection
  • Medical payments
  • Bodily injury liability
  • Property damage liability
  • Collision
  • Comprehensive uninsured
  • Underinsured driver coverage

Hence do a thorough analysis of the insurance companies available and select the one which you consider as the best.

More Resources on Car Insurance

How to proceed to insure your car / other vehicles?

What is covered by basic auto insurance policy?

How do the price of my auto insurance policy is fixed?

Tips to reduce the insurance premium of your new / used car