Surprisingly, there is a lot of literature about the auto insurance business online. The main method of doing most of the work is to sell the direction of car insurance, rather than providing it in the appropriate context of insurance products or products that protect your assets and wealth. ' That's why in the search phrase ' car insurance ' along with the sale ' appeared a lot of websites. Phrases like affordable car insurance, or cheap car insurance or low-cost car insurance.
At the beginning of 2011, according to Google AdWords, there were 8,100; 74000; 9,900 searches per month for the above key phrases. On the other hand, there are only 110 searches for “reliable car insurance”, 170 searches for “quality car insurance”, and 8,100 “top car insurance companies”. ' It is easy to conclude that most online searches are about price, not quality of insurance.
The basic principle of marketing is to understand what people want and design and package your products or services to meet people's needs. Looking at these numbers, we can say that most people want cheap car insurance. As a marketer, if you design any campaign without considering analytics, you may not be able to conduct a marketing test. Please close your site and do other things.
So what is the difference between auto insurance policies? From a financial planning point of view, car insurance comparisons should never be based solely on price, and sometimes most people think that cheap insurance is not necessarily the best car insurance. But what most people don't know is that an insurance policy with the best rating company may also be one of the most problematic contracts. The auto insurance policy should be compared with three factors:
1. Price: Of course, the cheaper the better.
2. Company Rating: Non-standard companies are more flexible in their past violations in terms of drivers' MVR activities and car insurance applicants' credit scores than standard or preferred companies. However, non-standard companies are more stringent than other companies in customer service and payment claims. Most complaints come from non-standard insurance companies. Although preferred companies don't hesitate to pay small claims quickly, because of the $78,000 claim, even more; all companies from top to bottom will try to check the application to see if they have to pay a $100,000 claim.
3. Limitation of Liability. This is the most overlooked and least understood, but it is the most important aspect of the policy, and they affect customers when they need insurance. It measures how much protection you have when you are sued. If you or your spouse have enough information to prove that you or your family member has a major car accident and you and your spouse have enough wealth to be sued, then a professional financial advisor will never sell you a low-level car insurance. single. And the policy of paying the maximum amount for your car insurance proves that it is not enough.
Under the minimum liability limit set by the state, quality insurance companies sell many insurance policies. In Illinois, these limits are 20/40/15, which means that if you are causing the accident is your fault and you are being sued by someone else, then your company will pay you no more than $20,000 for someone on your behalf. Physical injury does not exceed $40,000 for all other persons in the accident and must not exceed $15,000 for any and all property damage you may have in the incident. If you are a business owner and cause a major accident that results in an unbeaten $300,000 lawsuit and your insurance company pays the policy to the maximum and pays $20,000, the difference of $280,000 will come from your own money!
Financial planners and auto insurance marketers are not harmonious
Financial planners are inconsistent with insurance marketers, and the auto insurance liability limits need to be weighted. Marketers like to emphasize aspects of price and company ratings, while financial planners like to emphasize the importance of liability limits first, followed by company ratings second, and perhaps late.
The common goal of managing financial planners and auto insurance marketers is to maximize their wages while providing services, but their scope of operations is different. Auto insurance marketers make money by selling as many policies as possible. Marketers do their best to sell as much as possible because they earn a small amount of money on too many policies to sell. Financial planners work differently because they try to make large sums of money from the few customers they own. Selling a car policy is not a primary concern for financial planners, but for his or her car insurance, this is one of the fundamental themes of the financial planning process.
Auto insurance agents view auto insurance as a way to protect the car itself in the event of a theft, fire or other loss, including the fact that it is legal. Financial planners view auto insurance as an integral part of the customer risk management process. For financial planners, the auto policy is not to repair the car in the event of a loss, but primarily to protect the insured's assets and wealth, especially for potential litigation.
Some auto insurance marketers even suggested reducing liability insurance as a way to save money. No sound financial planner will make such a suggestion. no way!
When is the height important?
Your limit of liability should be a major issue that should be dominant when you purchase auto insurance. If /(1) you purchase a higher limit and can't afford it, you may only need the state's minimum liability limit, and (2) your current assets or wealth are not enough for you to accept further litigation in the event. . (3) Unless it is at a minimum, you are a high-risk driver and no one else wants insurance. However, if you have a certain amount of assets and wealth, or are expected to have considerable assets or wealth, then you need to worry about the level of liability.
What if you don't have wealthy assets? Even for people with little or no wealth, the height of the liability limit should be their concern. This is because liability insurance covers a range of coverage to cover your physical injury when you are hit by a legally uninsured or insured vehicle, but the vehicle is not covered enough to cover your bodily injury. According to the Insurance Research Council, about 15% to 17% of all drivers in the United States do not have insurance. Insurance coverage for uninsured drivers (UM) and underemployed drivers (UIM) varies by state and state mandatory status and limits. In Illinois, the limit for personal injury per person is $20,000, and the limit for personal injury per incident is $40,000. In Illinois, the insurance company's coverage is not mandatory, but the insurance company must provide the customer with a policy that exceeds the state's limit liability. Customers can still refuse to have a higher uninsured/insured driver, but must be in writing. As you can see, your limited liability policy provides insurance for your physical injury and ensures that you have high limits on your responsibilities, and UM and UIM can have a huge impact on your life.