Insurance World

Many people think that auto insurance companies are taking advantage of the fact that drivers, no matter what, are required to carry some sort of insurance to drive, by the laws of our country. When it comes down to the wire, the truth of the matter is, we have options when it comes to how we choose to get covered. Lets face it, auto insurance companies are there to make money, however, they are also there to protect you, your family, fellow drivers and pedestrians among others. Nevertheless, that doesn’t mean you have to be paying unreasonably high prices for that protection and peacefulness of the mind. There are a few pieces of information that many people are just not aware of that may be of some assistance to some.

Companies Versus Brokers

Firstly, there is not only one way to get coverage from auto insurance companies. Lets elaborate on that a little and take a quick moment to mention insurance brokers, who can also be referred to as “middlemen”. Anytime you do business with a middle man, they have to get paid for what they do, and that is generating business for companies. You have the option of getting car insurance through a broker, or you can also deal personally with insurence companies, both of which have their advantages and disadvantages.

When you wheel and deal directly with auto insurance companies, the “middleman” is taken right out of the equation, and this helps a company keep their rates as low as they can. But as we all know, there are always two sides to a coin, and it may not always be easy to get in touch with a large company everytime you have a question or would like to change your policy. Brokers are there, on the other hand, for added convenience, and are in fierce competition with eachother to get your business. With this in mind, insurance brokers will do the shopping around for you making sure you get a policy tailored to your needs, with the best price for you. With a broker, you can simply call them if you have any questions, and deal with them on a more personal level.

Who Decides What Rate I Will Pay?

Auto insurance companies work along side underwriters, mainly “property and casualty” underwiters. There are different types, but these specialize in auto insurance, as well as homeowner’s and worker’s comp to name a few. These guys are responsible for assessing the risk you propose to auto insurance companies, and then coming up with an appropriate rate. Their purpose, or mission, is to diminish the amount of loss, and to assist in generating profits for a company. An insurance underwriter can “make or break” an insurance company, which do not always have control over the rates you are assigned in exchange for coverage. They just want to make sure they stay above water.

The homeowner insurance policy is divided into sections. Each section has benefits and features. The home policy is divided into two main parts. When you see the declarations page on a home policy then you will see its structure very clearly.

Section I – provides property coverage for the dwelling, other structures, personal property and additional living expense.

A.The Dwelling – provides coverage to the dwelling and the structures attached to the dwelling.

B.Other Structures – Provides coverage for other structures other than the dwelling that set a part from the dwelling.

C.Personal Property – provides personal property coverage for the insured anywhere in the world.

D.Additional Living Expense – provides additional living expenses to the insured if their dwelling becomes uninhabitable.

Section II – provides liability insurance and medical payments to third parties.

A.Personal Liability- provides coverage in the event a claim or law suit is brought against the insured for damages because of bodily injury or property damage.

B.Medical Payments – provides medical payments to others in the event the individual is injured and requires medical treatment.

There are many more additional benefits and endorsements to these two sections. The home policy will list the perils that are covered under the policy. The homeowner policy has a wide range of protection. Homeowner insurance policies are sold on either a replacement cost or actual cash value basis. The replacement cost homeowner policy is more appropriate for newer homes built within the last 40 years. The actual cash value policy is better for older homes that have depreciated in market value.

There are discounts available for things like smoke detectors, dead bolt locks, and fire extinguishers. Burglar alarms and fire alarms that transmit to the police station and fire departments will qualify for even larger discounts. There are retirement discounts for the senior citizen as well as multi-policy discounts when you purchase auto and home insurance from the same company.