Beyond Rates: What Really Sets Auto Insurers Apart?

One of the most repeated pieces of advice, when it comes to auto insurance purchase, is to compare rates. It is as if this is the only difference between auto insurance offers. Fortunately, this isn't the only thing that sets insurers apart. Some of the real differences come in various areas such as:

Targeted Customers

Mainstream insurance companies cater to a diverse group of clients. However, there are some companies that target particular clients, and they offer attractive packages to such clients. For example, there are insurers who target high-net-worth individuals. Their rates may be high by industry-wide standards, but they are low when you consider what you get in return. For example, you may be offered unlimited towing, discounts on accommodation while traveling and similar things.

There are also auto insurers who target owners of collector and classic cars. As you might imagine, these cars are expensive to repair (after damage) since they may require expensive/rare parts and specialized knowledge. Insurers who target this demographic understand their unique needs and have customized packages for them.


The insurance industry is filled with all kinds of discounts for its clients, and the sub-industry of insurance is no different. There are discounts for keeping low annual mileages, clean driving histories and even for being a good student. Fortunately (or unfortunately), most of the discounts are offered by all insurers.

However, if you look closely enough, you will find unique discounts that only a few insurers offer. Examples of these unique offers include discounts for:

  • Employees of certain companies
  • Members of certain professional organizations
  • Engaged couples

These unique discounts, in addition to the standard ones, will help you to lower your cost of insurance even further.

Medical payments

Medical payment is another area in which insurers differ a lot. Medical payment coverage caters for medical expenses for all passengers injured in an accident. Apart from that, it will also provide medical expenses for all your family members (as long as they are members of your household) who may be injured by any vehicle.

However, the coverage is not standard between insurers. For example, some companies exclude restorative dental work, others will stop paying for the treatments after a certain period (say a year) while others consider plastic surgery as a cosmetic need and will not pay for it.

These are some of the biggest issues you need to zero in while shopping for car insurance. One insurance company may have a not-so-good standard rate, but it may have other perks to make up for it. It just goes to show how much comparative shopping can help you with auto insurance.

To learn more, contact a company like Ed Ramming Insurance Agency Inc

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