Learn how to identify, research and compare car insurance quotes and terms before you buy policy.
What should to know about insurance?
Insurance is important for people. In this world of uncertainty, having insurance will be beneficial to protect us from any unpredictable occurrence that can happen at any time and place. There is no one who are able recognize causes and exact time about the emergence of various accidents, except God the Almighty. It is just happened, sometimes without any reason, yet it often gives serious effects, both physical and emotional. To solve this complicated problem, insurance is provided as the most effective and efficient way in anticipating risks that are caused by occurred accidents. Basically, insurance can be defined a device that is used to minimize any risk and damage that may be occurred right after the accident happens.
According to Professor Mehr and Cammack, insurance is an instrument that can be used to minimize any financial risk. This way is performed to predict individual loss, so the party that is involved can take responsibility towards it. C. Arthur William Jr. and Richard M. Heins have different opinion about definition of insurance. These two people try to define insurance by dividing it into two parts. In the first definition, they define insurance as a way that is done to secure any financial loss which happens to be insured party’s responsibility. While in the second definition, they refer insurance as an agreement in which there are two or more people who are involved or corporation that collects fund to be responsible about financial loss. Insurance also has its own functions. Some of them may likely be mentioned above, yet there are other functions of insurance that are needed to be described before we move to the next paragraph.
What the main purpose of having insurance?
The main purpose of having insurance is, of course, about protection towards many things. There are many insurance companies that offer various types and customized types of insurance policies. As clients, you have freedom to choose it to your liking based on your need and financial condition. By paying small amount of premium, it means that you have just agreed to hand over your life and wealth to insurance company. These entire premiums will be saved by this company, just in case there is something happen to you or your property. Having insurance will also put your life at ease. You will not have to worry about any uncertainty in this life, as long as you have insurance.
Insurance is a great companion that will change uncertainty to certainty. Insurance works well by collecting risk bearing and evaluating it. It is done to provide maximum service to clients, so they can prevent unfortunate loss that is happened afterwards. Not only individuals, businessmen, companies and larger industries are also suggested to utilize insurance company’s service. As appropriate device to secure promising properties, insurance is more than enough to provide maximum security and certainty for all of them. Insurance can also be beneficial for those who want to reinforce and improve their business to the next level, since this device can also be used as saving and investment place.
Identify the type of insurance?
There are many types of insurance. Starting from the regular ones like health insurance, life insurance and vehicle insurance, up to unusual offer of insurance, such as alien abduction insurance. All these various insurance can be chosen and customized to fit clients’ need and budget. Car insurance, for instance, is important to be owned by people who can drive. Owning or not owning automobiles is not an issue here; the most important thing is you have provided some kind of financial protection against any car accident of physical injury that may happen anytime and anywhere. So that when you experience unexpected and unusual things in the road, you will be able to prevent any financial loss. As for type of car insurance coverage itself, there are many choices that can be purchased from insurance company by you. General information about this kind of insurance should be known by those who have plan to buy it, since it will help you to make decision in choosing the most suitable car insurance. In United States of America, for example, professional liability insurance is one type of insurance that should be owned by every citizen. It is a must, since it has been stated by law in each state of America.
It’s time for car insurance!
As one fundamental car insurance that American can obtain, liability insurance offers minimum requirements of policy limits. If one day there is an accident which happens to clients, then liability insurance will bear all physical and emotional injury and any damages towards your property. However, liability insurance does not provide any coverage in paying the policy holder. Medical, comprehensive and collision insurance are some additional insurance that should owned by clients if you want to get supplementary fund for your properties and your own.
In short way, only having this kind of insurance is not enough to protect your safety. You will feel much calmer of any risk of financial loss if you buy other car insurances as a complement of liability insurance. Another type of insurance that is required to be owned by America’s government is PIP insurance. PIP insurance, which stands for Personal Injury Protection, refers to insurance that will cover damages, medical expenses and other financial cases, just in case it happens to you and your property. As an extension to basic insurance, this kind of insurance can be found in some states in America, such as Hawaii, Kansas and Kentucky.
If you live in a place in which PIP insurance is not required, then it is the right time to consider purchasing insurance that offers medical coverage. By buying insurance which covers medical expenses, your financial expenses will be assisted by insurance company. Comprehensive health insurance can also be chosen to substitute the two previously mentioned insurance, since it usually offers continuous plan for your health condition, including regular visits to emergency room. PIP insurance is sometimes known as no fault insurance, since the amount premium will not be increased due to particular claim. To protect your car from any other damages, comprehensive insurance may fit your need, since it will bear all damages that are caused by almost anything except accident. It is a great companion for those who want to provide maximum protection for your property.
Tips for compare car insurance!
Choosing appropriate car insurance that fit your need and budget may sound hard to do. First thing that you should do is performing a comprehensive personal research. The small research itself is needed to be done by comparing car insurance quotes in the internet. By doing online comparison, you will be able to have an affordable car insurance coverage of some similar type of insurances. Please note that you should decide amount of insurance coverage that you need before deciding to perform the small research. It will be impossible to compare insurance premium, without knowing about your personal need. Performing this kind of research may take your times and deplete your patience, however it worth well since you will be able to find a way to reduce your amount of insurance premium, by finding the lowest insurance rates.
When performing personal research, it is important to not being tempted by cheap cost of insurance premium. As we can see, it is an open secret that there are many insurance companies that decrease their insurance premium without giving appropriate service to clients. Make sure that you do not make wrong decision by choosing and trusting your life and your property to incompetent insurance company. Doing personal research is also beneficial to give visible image of regular insurance premium, so you will be able to notify which one is expensive and which one is cheaper. Insurance packages are another thing that should be identified carefully. We know that there are many companies which offer many types of insurance to attract clients.
In spite of amount of premium insurance, coverage limits is also important to be considered. It is done to find the most suitable insurance that fit need and financial condition of clients. Before deciding to purchase particular insurance, you should also consider about insurance company’s networking, such as number of partners and branch offices. It is done to prevent long awaiting in claiming insurance policy, just in case you need to fix your cars or motorcycles or you need to make a report about your stolen automobiles. Simplicity is another thing that should be considered by clients who want to purchase car insurance.
As device to protect our life and property, car insurance company should be able to provide easiness, so clients will not have to bear complicated process just in case they need to customize their insurance. Additional facilities, such as mechanical service, ambulance, crane, car substitution and customer service should also be considered by clients before choosing particular insurance service. All facilities that have been mentioned below can be considered as facilities that will give benefit to us as clients when we enroll to be protected by particular insurance company service. There is nothing wrong in utilizing special discounts and promos that are offered by particular companies. By looking for promos and discount, you have just saved your money and provided your automobiles with maximum security.
Having general information about insurance company may also be beneficial for you in choosing car insurance. Finding out about company profile and reputation of particular insurance companies will be useful for you to obtain best decision. This thing is important to build mutual understanding and trustworthy between client and insurance company. Make sure that you have entered you application to company with good reputation, so you will not find any difficulty in getting claims and so on.
Choosing car insurance company:
Fundamentally, there are three basic things that can be used to measure reliability in choosing insurance company. The first one is strength in terms of financial condition, which will give you security. Stability in terms of financial condition is closely related to ability of the involved insurance company to give the best service to their clients. It is important to be known by clients who are interested in enrolling themselves to insurance company, since there are so many insurance companies that are unable to fulfill their own promises to clients.
As a candidate of an insurance client, you should not judge everything just by look at its cover. Luxurious building and neat style of employees cannot be used to measure actual condition of the insurance company. In terms of financial condition, you can try to look at financial statement that is usually announced in newspaper. Just by looking at this statement, you will be able to see company’s liability in fulfilling their duty to pay claims to clients. This statement will also inform you about profit of the company. If the company is able to make profit or there is significant growth of profit, it means that the underwriting policy of this company is quite good. High quality employees can also determine quality of one insurance company. This thing can be identified by reading company profile from particular insurance company.
The second element is service, which will also show you about quality of human resources on the company. Insurance company should be able to give excellent service to clients, since it offers service and assistance to clients. Publication of insurance policy, for instance, can be used to measure quality of service and assistance of an insurance company. Asking for some opinions from close friends and relatives that have been used particular insurance company service may be useful for you.
The third element that can be used to assess a reliable insurance company is net operating cost. Ideally, profit of one company should be bigger that the operating cost, or at least balance. If the operating cost is much bigger that the profit, then we can conclude that there is something wrong inside the insurance company. As for the exact number, it can be calculated by using RBC (which stands for Risk Base Caital). Bigger number of RBC shows better condition of an insurance company.