Let's go through the process of insuring a car step by step. We'll have a closer look at what is really going on. None of the claims are exactly what they say, none of them are exactly what they want you to believe, and none of them are what you expected in the first place. Welcome to the world of sure deception.
Go to a comparison website and compare the various offers from insurance companies to insure your car. There are a few minor drawbacks in using a comparison site. For one, some insurance companies make it a point of marketing not to be on any of these comparison sites. On the other hand, the site must earn money; insurance companies therefore pay commissions to the comparison sites. And if a company doesn't pay commissions, then it won't appear on the site. It is in the interest of the site owners to get the highest commissions, any ranking will reflect that.
You could go to an independent insurance broker and get him to do the work for you. What does the insurance broker earn? Right, commissions from the insurance company. That again will influence his ranking system just as it did with the comparison sites. And he'll probably bill you for their services, too. Doesn't sound like a perfect solution to me.
Comparing the offers yourself would be the final solution. That's when you will understand that each offer differs from any other in just enough points to make it incomparable. It also gives you the answer to whether you should use a comparison site or a broker. They can't really compare the offers either; but they do get a commission when they bring anew customer. If you go directly to an insurance company, ask for a discount as they don't have to pay commissions to get you as a client.
We know now that you can't trust anyone but yourself to get an insurance contract. But what is the insurance company really offering you? Yes, we are talking about a car insurance, but that was not the point of my question. What is the companies interest in gaining you as a client? Where is the catch?
The catch lies in the fact that you completely misunderstood what an insurance company does. The company isn't there to help you, to insure you, or to save you from any kind of damage. The company is there to make as much profit as it can, pay the highest possible dividend to its shareholders, and the highest possible boni to the fat cat managers. How can this be achieved?
The aim of the insurance contract is to offer you as little coverage as possible at the highest possible price with as many exclusion clauses as feasible. Cashing in your monthly payment is the good thing; when you have an incident, then the cogwheels start to spin. Whole droves of experts and lawyers don't do anything but find excuses not to pay the claim; all tricks allowed and legal proceedings almost certain.
To get this all together; the insurance company employs two kinds of key workers, the salesman bringing in the monthly payments and his external counterparts in the comparison site business and the brokerage business. They make the money come in. The other key workers are those that prevent claims being approved or worse paid out. Any claims by insurance companies of 100% of claims paid is a legal fib. The statement is dependent on how you define claim, what claims you allow into the sample to get 100 %, and what paid means (paid in full, partially paid).
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