In a world where consumers are continually looking for ways to stretch every one of their hard-earned dollars to the max, finding a deal on car insurance is of great importance. Since Florida residents are legally obligated to carry some form of vehicle insurance if they want to be able to drive, finding an insurance company that will provide great coverage with a competitive rate should be simple, right?
While finding an auto insurance company that is willing to extend coverage is relatively easy, finding that great deal is not always so simple. There is a concerning lack of transparency among insurers as to how the price of an average car insurance policy is set.
In a world where statistics based on one’s socioeconomic information are readily available at the click of a mouse, many insurance providers, or, more accurately, their computer algorithms, are coming up with the annual premium amount. These days, when you request an insurance quote from any number of popular car insurance companies, the agent on the other end of the line will ask many questions and request some rather personal information, such as your credit score, in an effort to try to determine what type of person you are and how much risk is associated with the type of lifestyle they assume you live.
One of the most critical pieces of information an insurance company should look at when extending coverage to a new client is what type of driver that person is. While most auto insurance companies DO look at your driving record and take into consideration what type of driver you are, they also may look at your age, your zip code, your credit score, and whether or not you tend to use department store credit cards more than bank issued credit.
Your age and gender is an understandably important factor in setting your premiums. After all, young male drivers may more often display the tendency to take greater risks while operating a vehicle, while more mature female drivers trend toward more conservative driving styles.
The zip code where your car is being driven and whether or not it is regularly garaged may play an important part. One is more likely to have a fender bender while driving regularly through West Palm Beach than driving in a small, rural town like alachicola.
However, one’s credit score, may be causing a responsible driver with a clear driving record, to be paying increased or excessive premiums.
Because of this tendency of auto insurance providers to look more and more at a driver’s ability to handle money, rather than his ability to handle his vehicle, it is the fiscally responsible consumer who ends up paying higher premiums. As one’s consumer debt is reduced but not replaced with new debt, one’s credit score will take a hit, negatively affecting his ability to get the best deal on insurance premiums.
Unfortunately for the responsible consumer, the failure of insurance companies to be transparent with their pricing often means an insured driver may be overpaying for coverage, or paying for coverage he do not necessarily need to carry.
When searching for the best rates on auto insurance, it is important to have someone on your side. It is important that you have someone you can trust, who will tell you the truth about insurance rates, and work tirelessly on your behalf. Doing your own research can take hours, and can prove to be a painstaking and frustrating experience. Our insurance professionals at Oyer, Macoviak and Associates understand that your time is important to you. Our staff has the information you need to make the best possible decision regarding insurance for your vehicle. We are prepared to offer sound advice on how you can best protect your method of transportation, as well as the precious lives you transport. For more information, contact us today!
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.