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Apr 23, 2008

What is Cheap Auto Insurance

Cheap auto insurance is always been emphasized by a lot of insurance company for their marketing ad, they keep mentioning of having cheap auto insurance. Well, what is cheap auto insurance, is it cheap after all.

Now a days, what was once a cheap auto insurance have soared high, why?

As you may not know, along the process of insurance claims lies an abuse of the system, that is why auto insurance company is force to raise their once cheap auto insurance high to make up for the losses that brought up by fraud on the system of claiming auto insurance. Now, how does this corruption operated on the system? An example is that when a customer is claiming an existing damage that was already there before the accident from the accident claim. Auto insurance company is having a hard time proving what was the damage that is already there against the damage that was incurred when the accident happened, to make the matter worst there are people who are involved in the process of accident claim that is also falsify or exaggerate reports to deceive the auto insurance company.

Also, why a cheap auto insurance is not so cheap after all is that, When you acquired an auto insurance you must also protect your self from uninsured motorist that you might get involved with in an auto accident thus you will be force to pay extra to cover yourself, in a sense you are paying for the someone else insurance in terms of covering your self when you involve in an auto accident wherein the uninsured motorist is at fault. Another is that drivers who are not insured can also claim for the insurance of the insured driver that is at fault of the accident because the insured drivers liability coverage will pay for any expenses for the uninsured victims including auto repair.

Auto insurance company is very well aware of this fact and passes the cost onto those who have insurance policies to cover their expenses.

So next time you plan to get a car insurance coverage better to check a multiple auto insurance company to acquire the cheap auto insurance quote out there, if there's any.

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