by E Sneeneh, Chicago Cheap Car Insurance Expert

The term 'cheap auto insurance' is over used in the marketing literature. Many websites look at the term as spam. Many insurance marketers use the terms capitalizing on the fact that internet searcher are using the terms to look for car insurance where they can save money. During bad economic times, everyone wants to save money on everything including auto insurance.

According to Google AdWords, there are 260 global searches for the term 'quality auto insurance' as opposed to 110,000 global searches for the term 'cheap auto insurance'. Other searches for terms pertaining 'quality' versus 'cheap' suggest that there is a drastic and significant difference in favor of the terms with 'cheap' as opposed to terms associated with 'quality' insurance. Internet marketers understand these facts and try to take them in consideration as they implement their online marketing for auto insurance.

So what is the definition of 'cheap auto insurance'? The terms 'cheap auto insurance', 'low cost auto insurance', 'cheap car insurance', and 'low cost car insurance', as well as other similar terms refer to certain auto insurance policies written by certain insurers under certain circumstances including:
(1)  Auto policies issued without credit check, or with little consideration for credit. Quality insurance companies, generally speaking, do check credit, and applicant's credit play an important consideration in determining the price.
(2) Auto policies issued without MVR check, or with little emphasis on blemishes on MVR such as minor violations and certain suspension. Quality companies give MVR great deal of consideration. Some quality, preferred companies may not allow one or 2 violations for the entire household to qualify for their quality auto insurance.
(3) Auto policies issued with low liability limits, mostly at state minimum or very close to minimum limits required by law. In Illinois, the limits on auto insurance is 20/40/15, or maximum coverage of $20,000 of bodily injury per person, $40,000 of bodily injury per accident and a maximum of $15,000 property damage per accident. Similar amounts of bodily injuries (not property damage) are included in each policy for uninsured motorists, but not underinsured motorists.) Limits higher than those may not be available from many companies that offer 'cheap car insurance'. This fact can cause significant problems for people who purchase car insurance with out considering the rationale of auto insurance, and its role in the overall financial plan to protect one's wealth and property. For people with considerable wealth and assets, getting a low liability auto policy (cheap car insurance) can have very adverse effect on the individual's financial plan.
(4) Policies issued with the intention of providing claim / customer services less in quality than those offered by preferred insurers. Customer and claim services offered by cheap auto insurance companies are normally lower in quality.

Critical Social and Economic Role of Cheap Auto Insurance

Cheap auto insurance is not designed for people who need or can afford regular high liability limits, quality insurance. But there will be situations where cheap car insurance may be the solution for certain challenges. The following summarizes certain scenarios where cheap auto insurance play critical roles:

(1) People with bad records (such as DUIs or multiple violations) may not qualify for preferred, quality auto insurance. Low cost car insurance is the solution.
(2) People who can get quality, preferred auto insurance, but because of their age, ZIP, or credit issue, the cost of high liability limits insurance is very prohibitive. A 20 year old student high limit policy costs $1,300 compared with $250 with low cost auto insurance company- Here the student may not be able to afford $1,300 every six month, and low cost insurance may be the solution.
(3) People with international licenses and people with no licenses may not qualify for preferred, quality car insurance. In cases like that cheap auto insurance is the solution.

So while cheap car insurance is associated with critical coverage problems especially for people with certain wealth to protect, it remains a key solution for several challenges facing certain classes of drivers in our society.
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The author is a member of Insurance Navy, a leader in the Chicago auto insurance market. Insurance Navy offer both Chicago quality auto insurance and Chicago cheap car insurance to the Illinois residents. For more details, please visit our website.
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1 Comments

cheap car insurance said...
Wow!!! Honestly speaking you are really a great writer. What I required I got it. Thank you so much.

TUESDAY, OCTOBER 25 2011 2:25 AM

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