May 25th, 2009 
Insurance is probably one of the most important products you’ll ever buy. It’s not as expensive as your car. It’s also nowhere as expensive as your house. But its importance in your life is probably greater than either.
We don’t carry insurance for everyday use. Neither do we carry it mainly as an investment. (Although some people carry whole life insurance partly as an investment.) The reason we have insurance is to get us through events that we hope never happen.
Automobile insurance is there mainly for two reasons. One: to repair our car, if we’re in an accident. (Or buy a new car, if the old one is totaled.) And, Two: to pay for hospitalization in the event we’re injured bodily. Neither of these are things you want to happen. But if they do happen, it takes a lot of money to make things right. Insurance is that source of money.
So, one of the most important things you should think about when considering which insurance to buy is how quickly the company you’re considering pays on claims. Do they lowball you with ridiculous estimations for repairs? Do they take a month or more to pay? Do they have enough money in the bank to pay a lot of claims should they have them?
Interestingly, not all insurance companies are alike. Some are over 100 years old, with hundreds of millions in the bank ready to pay out claims. Some are essentially middle-men or brokers, buying from one company and selling to you. Some companies have a guaranteed 24 hour pay out. Some take days just to get a claims adjuster to come see your car.
In order to keep abuses in check, insurance is regulated at the state and federal level, but still you have to be aware that not every insurance company is equal.
Then there are the other perks they offer. Can your company insure your house as well as your car? Do you get a multi-car discount?
These and more questions are ones that need answering before you commit to a particular company as your auto insurer. The only way to figure all this stuff out is to do your homework.
Fortunately, we live in the era of the Internet. Used to be that you would have to make a trip to the library to find out about various insurance companies in your state. Now, all you have to do is use Google and you have the information you need at your fingertips.
This blog is designed to be a resource for you. Read the articles here. They will help point you in the right direction and help you understand what you need to know and think about when you buy insurance.
Your chances of using your automobile insurance are quite high over the course of your life. Hopefully, all you will be involved in is a mere fender bender. But still that could cost a few thousand dollars to fix, if the money came out of your own pocket.
With good insurance you can drive safely, but still know that you’re completely protected financially. And that’s a great feeling to have!
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