Description: The following article is mainly designed to concentrate on the topic which is related to car insurance quotes. From the detailed information about the insurance tip given below, we will be guided to learn something about how car insurance works.
It is mark flaca with another insurance tip, today I want to talk about how insurance works, so it’s basic, there’s going to be a short video, in the insurance company, you purchase a vehicle or you purchase a home something that you have to worry about, people suing you.
So you want to protect yourself in case you caused an accident, some sorts of liability that you could be sued for or you could be responsible for what insurance is, so the way it works is that you insure yourself where you protect yourself against three different things with auto insurance.
So it is something you’re liable, if you hurt someone or damage them or anything that you are responsible for, you caused an accident or you caused the occurrence, then there’s property damage, if you damage their house, their car, the shed in the side, you scrape it or you hit the mailbox, that’s their property, that’s called property damage.
Then there is another part which is medical that covers yourself, so if you could hurt, because you caused an accident or something happen or someone hit you and took off, those are the three parts to insurance.
The way that it works is that you purchase from a company State Farm Allstate progressive Geico, all those men, you call them up and you purchase the insurance to cover what you feel, you want to be protected with auto insurance.
If you have a loan on a house, then that type of insurance is forced onto you, because you can’t afford the house or the car, they want to protect their assets, so they’re going to make you purchase a specific coverage for that insurance, auto insurance, because all of us drive, most of us drive in the world.
If you’re watching tube, you probably drive unless you got in trouble and you can’t drive, if you watch my other videos on getting suspended licenses and lapses and stuff like that, but the point of that is when you have insurance, you are technically forced with auto and home.
If you have a loan on the house, if you don’t have a loan on the house, you’re going to be crazy not to have the insurance, but if you’ve got millions of dollars and you have a hundred thousand dollar house, why not take that risk?
The problem is that you aren’t ensuring the physical item, you’re not ensuring the physical car, the physical house, you’re ensuring the liability, that’s the most important part of it, insurance companies aren’t so focused on the car and the house and the items that you’re insuring, because they know what the value is, they can determine if you’re that 10 percent that’s going have an accident in your cars worth $20,000.
You’re most likely to have a $5,000 claim within the next 20 years, they can determine that and you may pay accordingly so that they make a little bit of money on top of it, so your biggest thing with insurance is that you’re insuring your liability.
I hurt you, if I damage you, if I do something wrong, it comes back to me and it’s my fault, then I’m going to purchase an insurance policy that will protect me so that when you come at me, you’re going to go this way at your insurance company, not at me.
It’s going to protect my assets, my income, my livelihood so that I can still retire and I’m protecting myself, that’s the point of insurance, keep in mind insurance companies are not govern eyes.
Let me back up, when I say that they’re govern eyes as far as the rules and restrictions, but there’s still a company, their job is to make money, if you want to learn how insurance companies make money, there’s a video there.
But their job is to make as much money as they can within reason now, that’s very limited, because there’s State Farm, all state Geico progressive direct general la insurance hundreds.
There are hundreds of insurance companies, you might think of five now, but if you sat down and looked at all the insurance companies, there are tons of them and then you have your agencies and your agents and your exclusive agents and your direct models.
There are tons of different types of insurance and the thing is that there’s so much competition that the value or the prices that they’re trying to make our very low, so they got it very strict, that’s why when you sit down and call insurance, you’re calling three, four or five different companies, because these companies aren’t fighting for your business.
But other companies don’t want it, you don’t fit their guidelines, we’ll do it, but we’re going to charge you three times, that’s why if it is your admission, you call up a company, it might be three, four, five, ten times as much.
I’ve heard it, I’ve seen it, I’ve done it, I’ve quoted it, I gave a man in Detroit at $10,000 quote, it’s crazy, you don’t use cream, do this the old $4,000 a month, it’s the way they want it, you don’t fit the guidelines, they’ll still insure you.
But because that higher risk for them, they’re going to make you pay that much more essentially the goal of insurance, the insurance company is trying to have you pay a little bit more than the risk that you’re taking.
So they’re betting or gambling to speak that you won’t have a claim, if they do, they’re going to assume that, you’re that person that fits in, that 10-year period where the average 25 year old has no tickets, no suspensions, nothing within that 12 year period.
They’re going to have one accident, it’s going to cost about $3,000 in average, they know that, so they can accordingly bid the cost of your insurance based on that, when you have that accident, here’s where a lot of people don’t like insurance, you’ve changed the risk that you’re in, you’ve gone from here which is a lower risk and brought yourself up to here, because you boom, hit now.
We know you’re 29 years old and the average 29 years old that has had one accident is likely to have within the next 12 years, two more accidents, that’s what it is, that’s an example, so now they’re going to raise your insurance based on that, they’re not doing it to hit you, because you’ve all the numbers, they’re playing the numbers game.
It’s like sitting down at the casino and playing roulette, you know that if the ball rolls on that, you got a chance of getting that, it’s the way it is, that’s the primary way insurance works.
If you’re new to insurance and you want to learn the basics of it, got another video appearance insurance 101 that will walk you through the different coverages, you would select what income levels you need.
If you want to know more, I’m starting to play with a little bit of a website, it’s called insurance com, feel free to visit that, but leave me a comment below about your thoughts, how do you think of how insurance company works? How do you think of your specific agent?
If you have any questions or any advice on different insurance videos, you’d like to see and you could be responsible for the next one, then I will see you next time.