“The American Automobile Association is fighting to protect the consumer from auto insurance rip-offs.” It seems that the Association takes a strong stand against anyone, other than an attorney, representing either the Insurance Companies or the Clients who are paying for auto insurance premiums. In some ways it would appear to be a rather odd stance for such an association to take. Is the Association concerned about its members being ripped off or is it just protecting the consumers?
When it comes to the latter: it appears that the Association has every right to be. The law as it exists now, in regard to auto insurance is outdated and unfair. There are many underwriters, brokers, agents, and other middlemen involved in the selling of auto insurance policies. This, of course, forces them to charge more for the policies they sell than what they would if they were able to deal directly with the client and only having to pay the agent or broker. As such, it is up to the consumer to insist on buying a policy from the company directly and paying full price. If they refuse, they are breaking the law.
An old rule that states: that the consumer should buy auto insurance from the “merchant” before obtaining a policy has been replaced by another one stating that the consumer should buy from the “endoracher” before obtaining a policy. By doing this, it forces the agents and brokers to sell to the same level of demand as they would if they sold directly to the consumer. Many times, this results in an inferior product and a lot of headaches for the consumers. These headaches, in turn, mean higher rates for the policy.
What exactly is this “endoracher” part of the policy that needs to be regulated?
There are many entities that make up the auto insurance industry in the United States. All of these entities have their own rules and regulations when it comes to auto insurance. Some of these entities are captive agents, while others act as brokers to several different companies at once. It is up to these entities to ensure that the consumer gets a good deal on his/her policy.
What does all this mean to the consumer?
Well, it means that American automobile insurance has become an extremely complex and intricate business. The rules and regulations vary among all the different companies that sell insurance. This means that you need to do some research to be able to purchase the best auto insurance policy for your vehicle. The research is further made more difficult due to the fact that each company will have their own terminology, policies, and requirements when it comes to auto insurance.
An auto insurance company can either offer a group rate: or they can offer individual rates to individuals. A good way to save money is by taking advantage of group rates. When you purchase auto insurance as a group, you will usually receive discounts, such as a group rate on all of the insurance plans purchased or a discount for buying multiple policies from the same agency. In addition to group rates, individual rates can also be quite appealing. However, before going individual, you should make sure that you read the fine print carefully. Any time you buy auto insurance, it is advised that you read the terms and conditions associated with the plan.
