Each insurance company uses different combination algorithms (Rating Factors) to assess the risk of the policyholder and determine the premium rate based on the data it owns, the driving conditions of its own policyholders, and operating costs. That is why the premiums quoted by each insurance company are different. The comprehensive situation of the same policyholders may be arsenic (high-risk policyholders) to Company A, but honey (low-risk policyholders) to Company B; therefore, under the same insurance content conditions, the premium of Company B may be Much smaller than Company A. But in addition to this general concept direction, each insurance company’s plan contract stipulates that there are also many details that cannot be ignored.
If you only buy car insurance based on the price, what traps do you fall into?
It makes sense to pay for what you pay for, and it may not be the most cost-effective to buy cheap insurance. Even under the same insurance amount, the detailed terms (Policy Definition & Exclusions) are not the same. for example:
• The deductible is also $500. The more expensive insurance company A has its own Claim Office that specializes in handling claims and has a wider range of benefits; however, the cheaper insurance company B may have a much smaller range of benefits and no special insurance claims The commissioner, after the accident, the attitude of handling the accident was also very negligent and negative.
• Some insurance companies will require OEM parts to repair the car, while others with lower premiums may use After-market parts.
• Cheap insurance companies may have many hidden exceptions that will not be explained to policyholders in detail. If an accident occurs and a claim needs to be made, it may happen that one’s own situation is not covered by the insurance.
It is recommended that policyholders still need to comprehensively evaluate the risks of cheap insurance policies and the reputation of insurance companies to decide which car insurance to buy.
Which insurance company is best for my personal situation and has good user reviews?
Each insurance company values different factors, and the weighting method is also different, which is why the premiums quoted by each insurance company are different. In addition, the credit score and customer satisfaction of the insurance company are also a major factor in the evaluation and selection. Therefore, in addition to whether the premium is reasonable, claims handling and attitude are also one of the key considerations.
