In business dealings there is a measure of trust between the business and the customer, and this trust needs to be maintained in order for business to take place, because no one wants to do business with someone they do not trust. This implied trust is what makes business work and what also makes it easy for less than honest people to take your money. Be sure you look very carefully at cheap insurance quotes and that you are not taken in by the low payment. Make sure that the policy will give you the coverage you need or you could find that a cheap policy could turn very expensive.
As with most businesses these days, competition in the insurance business is tough and you need to be on the lookout for companies and agents that are using dishonest tactics to get your money. You need to know that the company providing you coverage and the company selling you a policy may not be one and the same. This is not a ‘buy here , pay here’ business, so the people you have to deal with once you sign a policy may be completely different than the agent who sold it to you. It is always a good idea to investigate all the companies who service your potential insurance policy with the Better Business Bureau (BBB) for complaints.
Everyone is not out to steal your money any way they can, and there are plenty of good, honest people out there that will do their best to make sure that you have the coverage you need at the price you can afford. But there are people who will do just about anything to get your money and one way they draw you in is with the low ball insurance quote. They will do this by applying every discount in the book regardless of whether or not you can get it, just so the quote will be appealing. One you agree and they write the policy, of course are not eligible for most of the discounts, but now all of a sudden it is your fault for not qualifying for the discounts. It does sound ridiculous, but it works or they wouldn’t do it, so beware and know it is out there.
You are taken in by the low quote and the plan is that once your old policy is canceled, your old insurance company will not want to take you back, so in order to keep your coverage you are stuck paying them a whole lot more money than you had originally thought. When the technique is analyzed, it is a completely dishonest way of doing business, but it works or they wouldn’t do it. You have become their customer by default.
Chances are, if it looks too good to be true it probably is. Check any quotes you get very closely for things such as extreme deductibles and discounts for things which you aren’t eligible to get. Examples of these types of discounts might be a multiple policy discount, which you don’t have, or a good driver discount and you know you got a speeding ticket last year. Look for these kind of warning signs when you look at an insurance quote and if you see this kind of unethical practice, then immediately cross this company off your list and get a quote somewhere else.
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Online Insurance Quotes.
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