The Reluctance to Purchase Auto Insurance

Auto insurance is quite a strange product that people purchase it, but they never expect to use it. Many types of coverage in the auto insurance policy will only apply following a car accident, and there is no driver who wants to get injured or cause damages to his/her vehicle. However, 47 states in the U.S. require all drivers to have some car insurance mainly liability and property damage coverage. Auto insurance is mandatory, but a considerably great number of drivers are still reluctant to purchase it for various reasons. Here are some common problems that have led people to avoid purchasing auto coverage and why goodtogoinsurance can be an easy solution.

auto insurance

  1. For the sake of cutting cost

In some cases, drivers will buy insurance but only begrudgingly. They make the purchase only because the law requires it without actually seeing any potential benefit. Those drivers have no belief that auto insurance provides real value and, therefore, consider this product a waste of money. An economic downturn has been an affecting factor as well. People cut cost where they can, and auto insurance is an expense that cannot give immediate or direct benefit in return unless you are involved in an accident. There are laws to regulate fines or punishment for uninsured drivers, but they are willing to take the chance to avoid paying insurance premium even when they can afford it.

If the reason is budget-related, it is easy to notice that the competition between insurers is fierce. Insurance companies are also trying to reduce price anywhere possible to encourage customers to comply with state’s’ laws. Even for high-risk drivers who need to purchase non-standard more expensive coverage, there are many good options available. Good to go insurance is a prime example that provides affordable coverage for high-risk drivers.

  1. Bad experiences with previous insurance company

Another common reason is the unfavorable attitude toward insurers based on past experiences. Insurance companies are not created equal, indeed; there are stories of insurance fraud told by families, friends, neighbors or even online acquaintances. Although those horror insurance stories came from only a handful of companies, people are becoming more reluctant to purchase coverage because they are afraid to be deceived. Someone else’s unfortunate events in the past, such as rejected claims or unexpected premium increase, lead to the belief that insurance companies are things to avoid.

A good way to prevent fraud is to purchase from a reputable, experienced insurance company. Good companies may not provide the cheapest rate, but probably millions of customers have proved the quality of services. Goodtogoinsurance is a subsidiary of American Independent Companies, Inc., an insurance firm that has been in the industry for more than 25 years. Furthermore, this parent company has a network of licensed underwriters spread in most states in the country. It allows Good to Go Auto Insurance to provide coverage more efficiently while it makes sure that your policy complies with the local law regardless of where you live. A licensed, reputable company means it provides all services by a set of insurance standards regulated by the states.

  1. Denial of real risk

The worst reason is simply a denial of known risks. Some people do not want to purchase auto insurance not because it is expensive, or they are acting preventive towards possible fraud, but because of ignorance. These people understand very well about the possibility of getting involved in an accident, but they ignore the risk anyway because of the belief that accidents will not happen to them. Beyond the financial protection, insurance card, and policy document, auto insurance is an intangible product. If an accident occurs or they are caught committing traffic violations, the fines can be higher than normal because driving without insurance is also another violation. Moreover, they have a greater possibility of being considered high-risk drivers, which leads them to make the most expensive purchase of non-standard coverage. The good thing is that the company has managed to give some payment options to break down a full-year premium. The way they have the payments option are the monthly and quarterly basis, so the non-standard cost coverage is more manageable.

In such situation, many insurers will reject your applications. High-risk drivers are those with bad past driving records or high probability of filing claims in the future. Insurance companies do not like this kind of customers, meaning non-standard coverage is a must-purchase. Some insurers provide non-standard coverage, but the company has been better known to specialize in providing minimum liability coverage for high-risk drivers.

In reality, there is always the risk of being involved in a road accident. If you are now considered high-risk due to previous major traffic violations or young age, it can be difficult to find a company to underwrite your insurance policy. Even when you do find one, you should expect that the price is beyond normal. Goodtogoinsurance focuses on providing its services to high-risk drivers, but the company has many discounts with relaxed eligibility requirements to help you reduce/manage premium cost better.

If you are at fault in an accident, the minimum liability coverage and property damage give a payout to the other party involved. The financial protection is for you, but it is for covering the cost that you need to pay because you are legally responsible. Your car is also an investment worth protecting, and the company offers optional coverage including Collision and Comprehensive to protect your car. Vehicle repair can be quite expensive, but insurance helps to prevent you from spending more money.

Standard and Non-Standard Policy

There are some reasons why an insurance company regards you as high-risk drivers. For example being teen driver, having no home-ownership, previous DUI or any significant traffic violation, driving sport/antique car, and more. Some companies even use a credit score to determine your category. Whether or not you are high-risk, can provide affordable policy without reducing the quality of services. Also, Collision and Comprehensive are optional only. The process of purchasing insurance from the company is very simple as well either from an agent or online. Furthermore, you can ask for free quotes to see an estimation of your premium prior to purchasing. All those features are accessible from the official website of the company.

In conclusion, many factors lead people to avoid purchasing auto coverage. However, Good to go insurance has been great in terms quality, reputation, options, discounts, and high-risk tolerance to deny easily the assumption that people do not need it.

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