1.800.332.1393

mickeyworden@sbcglobal.net

Auto Insurance (Oklahoma ONLY)
click here for your FREE quote

HOW TO PROTECT YOURSELF WITH AUTOMOBILE INSURANCE

There are many ways you can purchase car insurance. You can buy it over the Internet at literally hundreds of different web sites. You can call an 800 number and buy it over the phone directly from an auto insurance company. You can call an insurance agent. In some cases, you can buy it at your bank or credit union.
It’s not surprising you can buy it so many ways. After all, there are hundreds of insurance companies that sell auto coverage in your area. How do these companies differentiate themselves? Some brag about their superior service when you have a claim. Some tout how easy it is to buy from them. But, often, auto insurance companies try to compete on price, just as if you were buying a plane ticket, a radio or soda pop.
* Tip. Some people believe auto insurance is just a commodity. It’s not.
You’re not buying a soda. You’re protecting your financial well being...and the choices you make could affect you for the rest of your life.
But before explaining how complex auto insurance products are, let’s talk about price. It’s pretty complex, too.
No Insurance Company Has the Lowest Price for Everyone
* Note. No auto insurance company -- no matter what it says in its ads -- offers the lowest price for every driver in every location. There are companies that are often among the lowest. And there are companies that are usually among the highest. But no company is the lowest for everybody.
* Tip. Also, be aware that prices fluctuate. Sometimes companies “buy the market” with low prices to gain new consumers...then their prices gradually – or not so gradually – sneak up.
They also have to change prices based on their profitability, losses and other factors.
Every company has a slightly different appetite for the risks it wants to take on. Some insurers want only very good drivers who have no tickets and no accidents. Some companies, believe it or not, actually want bad drivers. In fact, these companies specialize in insuring people with lousy driving records.
Some companies target drivers who live in certain areas. There are insurers that really like to do business in big cities, and there are others that would prefer to stay away from highly populated areas.
* Tip. Remember that sometimes “you get what you pay for.” The cheapest option may not provide you or your family with the best protection. The saying goes, “you don’t need insurance until you have a claim.” When you do have a claim – something that goes wrong – that’s a terrible time to discover you don’t have adequate protection!
If you think auto insurance is a commodity, consider this:
A person with a good driving record will pay three, five, even 10 times less than a driver with a couple of tickets, an accident or who has been cited for and convicted of driving under the influence.
A person who lives in a major city -- say Los Angeles, Chicago, Houston or Denver -- will pay three, four, even five times more than someone who lives in a rural area or small town, even though the two have the same driving records.
* Example. The last two paragraphs are average differences. Auto insurers are all over the map on prices in a given area. Say you live in Everywhere, U.S.A. (don’t we all)? Say you have a good driving record. One insurance company might charge you $500 a year for a policy that provides most every coverage available. Another insurer might charge you $1,500.
As you can see, it can pay to shop around. Just be sure:
§ You really understand the different coverages in your policy, or,
You have an agent you really trust who can examine coverages and prices for you.

TOP