People’s perspective determines their approach to certain products and services. If you are a risk averse person, you may be extra careful with your purchases and want to make sure that you choose the providers very carefully. On the other hand, some people may be more relaxed about things. They are more likely to find cheap car insurance in comparison to former types of personalities.
What Is a Commodity?
Most people have a pretty clear idea about it. They are the things that have similar values and qualities and can be interchanged easily. They are bought and sold every day and they even have huge exchanges in places like Chicago and London. For example, oil, gas, cotton, coffee, sugar, wheat, corn, soybean and even orange juice are commodities.
Their key characteristics is that they can easily be classified and measured and therefore easily traded by people from all over the world. It may not sound important but it is an essential point to note in order to understand how their prices are compared. You can easily say that one producer is trying their luck when you see a higher unit price.
Commodities vs. Auto Insurance
When you have the commodities approach, policy shopping can really be simplified. Recent surveys suggest that people who think all the policy coverage, add-ons and insurers are pretty similar do well in finding the cheapest auto insurance prices for the best coverage or their circumstances. Otherwise, you can be picky and turn down a perfectly good policy offer at a great price because you prefer certain brands.
One of the main reasons for people making such assumptions is that simplifying things can help them get on with the unencumbered shopping process. In a way, they can have a look at the possible vehicle insurance quotes first and decide about the company later. This speeds up the process and increases the convenience of the online price comparison platforms.
Is Automobile Insurance a Commodity?
This is the main question and the answer is essentially no. However, you can understand how helpful it is to think that there aren’t really huge differences between providers and policies. There are so many companies in the market from a wide spectrum. Some are specialized in no frills but cheap policies that do the job of covering the large risks motorists cannot face on their own. So, if your car is burnt down, they will payout its market value like any other carrier.
However, some other companies may do a better job if it needs to be repaired. They could be very quick about arranging the repair garage and repairs and they may even offer you a courtesy car while yours is in the garage. These little intricacies make them more attractive to people who are used to good service and have money to pay for it.
Also, if you are expecting that something may happen because you have a teenage child on the policy or you are living in a high crime area you may want to pay attention when choosing a car insurance company. Again, there are people who are very good drivers, have a garage for their automobile and live in a safe little town. They have probably never made a claim and they don’t expect to make one in the near future.
In conclusion, one policy from company A isn’t normally a perfect replacement for the one from company B. The point many motorists rightfully make is that it isn’t usually obvious to them. And worrying about these little intricacies can prevent them from carrying out comparison shopping that will save them some money in these tough times.