Car insurance is necessary to help protect drivers when they are involved in an incident. However, it’s also mandatory by the law in most areas. The idea of a car insurance company is that the driver pays for the bill and hopefully will never have a reason to file a claim. This pretty much insures pure profit on this type of customer. The safe driver that never has to use insurance but yet has insurance for those just in case moments is the cash cow for insurance companies. To eliminate being the cash cow and retrieve lower insurance payments many people choose to join a co-op car insurance.
Co-op insurance is not a new idea and it has existed for decades. Basically what it is a group of people that insure together as one in order to get better deals on the pricing of the insurance. Co-op car insurance eliminates a lot of unnecessary expenses by eliminating the middle man. By doing this it passes the savings onto the customers. Co-op car insurance is becoming a fast growing way to insure as economics times get worse.
About Co-op Car Insurance
Being that most co-op car insurance companies are usually small in size they generally only cover people in a limited area. For example if the co-op company was in Liberty, Texas then it would only cover those in Liberty, Texas. However, they are not limited to this size it is just generally how it works otherwise they may end up becoming like one of the commercial insurance companies and that defeats the purpose of having a co-op car insurance company. Usually if a co-op car insurance company starts to get large they tend to break off into smaller co-op insurance companies in order to maintain the integrity of a co-op insurance company.
Things to Consider
Since most co-op insurances are not very large there may be some negative sides to them. For instance since there is less money coming in there may be less agents to help after an accident. Therefore processing a claim make take longer to process. This could be something many people do not want to wait on. This has to be taken in consideration when choosing insurance companies.
Traditional insurance companies usually give discounts based on certain criteria such as a military discount or safe driver discount. Traditional insurance companies also consider the driver’s vehicle make, model, residence location, and color. However, the co-op insurances do not make these types of discounts or consider the driver’s vehicles make, model, residence location, and color. Due to these difference it is necessary to conduct research on both traditional car insurance companies and co-op insurance companies in order to make an educated decision on which is better as far as coverage and which one will cost less money in order to get insured.
There are many online tools in order to get a quote on the car insurance you would like to use. This gives you a head to head analysis of coverage types and out of pocket costs.