Insurance

If you own a house and a car you are going to need homeowners insurance and automobile insurance. If the house is paid off you might squeak by not having homeowners insurance, but it is not a recommended way to go.

Anyone who has listened to the radio or TV will be aware that there is no shortage of folk selling insurance. Automobile insurance seems to be a popular offering.

Ever wonder about those commercials implying you can save hundreds of dollars by buying insurance from a particular company?
How can they promise you savings when they don’t even know what sort of risk you are?

Well you need to listen carefully to what they are telling you. Would, should and might always qualify their promise of savings. It is the bait they offer hoping to hook you into calling them for a quote. You are better off not doing that. Don’t ever call an insurance company unless you have a claim or are pretty certain you want to do business with them. Stay away from those outfits that offer to compare prices for you. There is a much better way to do comparison shopping for insurance of all sorts.

http://www.tdi.state.tx.us is the website of the Texas Department of Insurance. I am sure other states have similar services. On this website you can get a comparison of all the insurance companies doing business in Texas. They compare rates, complaint level, and rating. Bet you did not know that some insurance companies are less friendly to customers who file claims.

The state of Texas will give you comparisons without asking you a lot of personal information not required to quote a rate. Asking an insurance company for such information nearly always ends up with them getting as personal as you allow. Yes, I know they all have privacy policies and if you bother to read them you will discover that their policy is to do whatever they want with any information you give them.

I recently did a comparison of insurance rates both automobile and homeowner. The best rate for the homeowner insurance was offered by the company that is already providing that insurance.

The automobile insurance rates verified my suspicions. The rates varied from $250 to $1200 a year. Those companies that advertise most heavily on radio and TV were solidly positioned in the middle at around $600 to $800. The current rate of my present insurer was $265 a year. Looks like I am already saving all the money I can on automobile insurance. I am pretty sure it is not worth the hassle of changing to get the $15 savings from the lowest bid. Besides the lowest bidder did not have a very good track record.

So, you see. those racy cartoons, big bottomed spokeswomen, talking lizards, and good hands people don’t spend millions on ads because people are flocking to them to buy insurance. Oh, sure can save plenty with them when comparing their rates to the high priced spread at $1200, but that is not the kind of comparison most consumers are going to do and it does the insurance companies no good to point out that you can save even more if you go with a reliable company that has the lowest rate.

Advertisements
Explore posts in the same categories: Advertizing, consumer

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: