My Family Finances

  • About The Author
  • Contact
  • Blogs I Read
  • Policies and Disclaimers
  • Family Money Answers

Focusing on Coverage versus Premiums

04/04/2015 by John Leave a Comment

The automobile insurance industry is going through some amazing and rapid changes. From tracking devices that send information about every turn that a driver makes, and every time that they brake their car, to coverage that offers “pay as you drive” insurance, new insurance products for automobiles are popping up left and right.

Still and all, the overwhelming majority of consumers still shop for car insurance the traditional way. The problem however is that it’s more confusing than ever. Unlike the real estate industry or even the travel industry, the automobile insurance industry doesn’t have a place where consumers can compare prices and coverages all in one spot. Not only that but, in order to get an insurance quote, consumers need to give an amazing amount of personal data, including access to their credit score.

Many insurance companies are trying to simplify the automobile insurance buying process, including companies like The Zebra, an iOS app called Go and another company called CompareNow. Using these companies and this app, and several others that are available, consumers can shop for automobile insurance of the traditional type and do side-by-side comparisons.

The difference between The Zebra and CompareNow is pretty big actually. While the former only gives estimates, it also covers over 1800 products from 200+ companies across the US (about 96% of the market), while the latter gives actual rates but only with 31 companies. The quotes that you can get from the Go app for iPhone can give you potentially cheaper rates very quickly but with much less accuracy.

One thing that these companies and apps don’t do however is advise consumers to focus on what’s most important; coverage. While comparing prices is relatively simple, comparing prices and coverage at the same time is a bit more difficult.

Sarah Smith, founder of Options Insurance in Twin Cities, Minnesota, says that “There are so many nuances to insurance, and people guess at the coverage levels they need and don’t realize what the repercussions are from the choices they make it.”

Indeed, it’s not always best to “one-stop shop” for car insurance because most people, when faced with choices, will simply opt for the cheapest choice available. Liz Weston, from Bankrate,  says that consumers choose the cheapest insurance option “wind up exposing yourself [sic]  to lawsuits,” adding that “working with a human being is not without its problems too.”

Your best bet is to take your time, check out several websites and car insurance quote services and, when you think you’ve found one that that fits your budget and coverage level, talk to one or 2 insurance agents who represent different companies.

Once you’ve got all the facts, and feel confident that  you’re getting the most coverage for the best price, then you can make your final car insurance choice.

Filed Under: Family Insurance

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sign Up and Get My Family Finances Delivered to Your Email

Enter your email address:

Delivered by FeedBurner

Search My Family Finances

Google
Custom Search

Recent Posts

  • Unexpected Home Expenses You Should Always be Prepared for
  • How To Avoid Constant Doctor Visits (Saving You Money In The Process)
  • How To Protect Elderly Parents From Scammers
  • What the Coronavirus Teaches us about Personal Finance
  • Tips to Eliminate the Stress from your Cash Plan

Archives

  • January 2022
  • October 2021
  • April 2021
  • April 2020
  • February 2020
  • October 2019
  • August 2019
  • July 2019
  • February 2019
  • January 2019
  • December 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • January 2017
  • December 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • November 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • October 2014
  • August 2014
  • July 2014
  • May 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012

Categories

  • Average Family
  • Blogging
  • Budget
  • College Information for Families
  • Deals for Families
  • Family Banking
  • Family Debt Management
  • Family Finances
  • Family Grocery Spending
  • Family Insurance
  • Family Saving
  • Family Spending
  • Money Answers
  • Uncategorized

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in