Misleading The Consumer: Auto Insurance Secrets

1. Your credit score - If you have a bad credit score, you are assumed to be an irresponsible person by nature (regardless of the real circumstances) and penalized as such.

2. The value of your vehicle is not the only factor influencing the premium. Statistics are taken into account, regarding the likelihood of being involved in a collision, or having it stolen. Any safety devices, such as an alarm or satellite tracking are also taken into account (but that would lower the cost for the consumer. Auto insurance policies of a lower premium also carry a lower commission, so.....).

3. After a collision, you vehicle loses some of its value due to the structural integrity being compromised. Legally, fourteen states allow you to file a claim, requesting the insurance company to compensate for the loss.

4. In the event of you car being totaled in a collision, your compensation is NOT calculated to market value. The physical condition before the accident and the mileage is noted, before a search is done to find the lowest replacement quote in the area. Guess what you get paid...

5. In twenty eight states you are not responsible for paying the sales tax on your replacement car when yours it totaled (no way they will tell THAT to the consumer. Auto insurance companies stand to lose a fortune...)

When offering a sales pitch, no right minded salesman would offer any information that may scare off the consumer. Auto insurance salespeople have a lot to keep quiet about, and the stakes are high. Since car insurance is a running expense, the total amount collected from a client can become quite substantial.

More general advice can be obtained from our blog on Auto Insurance

Most people find out the hard way. The best approach would be to (over time) compile a list of detailed questions to ask any insurance salesperson. Have your questions ready, and leave no stone unturned. What one agent may not be telling you, the next on won't either. BUT the numbers may be different. In time you will be able to prepare yourself, and avoid being "taken for a ride".





Insurance Robbing You Blind ?

.

Click on the pic to check it out....