Many vehicle owners are searching the internet to find cheap, affordable car insurance premiums. The internet is a powerful tool to research car insurers and compare insurance products. We also use the internet to find more about specific car insurers, their financial results and the comments made about these car insurance companies.
Car insurance companies spend much money on high visibility advertising campaigns. They understand the value of a building a strong recognizable brand to attract new clients and keep existing clients on the book. Perhaps the most important marketing mechanism is however “word of mouth”. Nice banners and television advertisements can only do so much – people however communicate and discuss decisions and experiences and are more likely to purchase an insurance policy from an insurer recommended to them by people that they trust. This might be family, friends or colleagues at work.
This is also why it is so important for car insurance companies to protect their brand and to communicate effectively with clients. If a client has a bad consumer experience he will tell 10 others about this bad experience!
What interests me is whether we can really say that this car insurer is better than that one. Who are we to make such a judgement? Do we have facts at hand to support our views? I have been a vehicle owner for 17 years and have had 2 claims for damage to my vehicles during this time. I have had one short term insurance broker whom I have dealt with during this time. I believe I have been with 3 car insurance / short term insurance companies during this time. I have entrusted my small short term insurance policy to his care and his expert opinion. I believe I have a good financial advisor – and I believe he will have my vehicle insured with the right car insurer. This does however not make me an expert on who the best insurer is –my 2 claims have been processed effectively by both insurers.
More recently we have found many new direct insurers – and a greater tendency to cut the broker or middleman out of the picture and save on broker commissions. This is something worth considering and I will be making enquiries with other vehicle owners and clients of these insurers as well. But will they really be able to provide an objective and fair judgement?
Nobody will admit to being insured with a bad car insurance company – this will be to admit being somewhat of a fool. People will more likely admit to having been at a bad insurer and having experienced difficulties, but having since moved to an excellent insurance company. The only ones able to comment about good and bad are actually those who have been participants of the claims process with several insurance companies.
But how many of us have actually had multiple car insurance claims with several car insurance companies?
So who do we ask about the best car insurance companies? Perhaps it is good advice to ask the financial advisors who have been involved in the claims process with many clients at a variety of car insurance companies. These advisors will however have little experience and feedback about direct insurers.
We would like to advise that more information be gathered than just one or 2 conversations. Discuss options, insurers and products with several car insurance clients. Ask for facts – and focus on facts!
Do not be guided by one disgruntled car insurance client who might not have made all the disclosures and subsequently had his claim rejected. Doing some research to find the best car insurance company might save you in premiums while insured and tears when submitting your claim!