Auto Insurance Discounters

By James Tam on December 9th, 2006

auto insurance discounters Inc., launched in 1992, is a company that serves the Insurance community and specializes in auto, home, life, and commercial insurance foe individual and businesses. The website (789auto.com) provides useful information regarding the company’s Insurance Services, and allows users to post comments or questions about products or services. Starting with only 1 office as a 2 person operation 14 years back, Eastwood Insurance Services Inc. now has 12 locations in Houston, Texas, and surrounding counties.

These are some of the myths and facts about auto insurance outlined by auto insurance discounters Inc. on their website:

1. MYTH: When determining rate, auto insurance companies consider vehicle color – It is a common belief that the color of their car affects their auto insurance rate by many drivers (about 25% according to survey). However, color is never taken into consideration when calculating car insurance rates by companies. On the other hand, information about the driver, make, model, year, engine size, and body type do play an important role.
2. MYTH: There is no regulation regarding auto insurance rates, and companies can charge any amount they want – 54% of drivers surveyed did not realize that each state in the United States has a regulatory body that supervises insurance companies within its boundary. Rates charged by insurers are all regulated by the body who review the information companies collect.
3. MYTH: Drivers are protected by Comprehensive coverage in all situations – This is another myth that 48% of those drivers surveyed believed in. Comprehensive coverage is just another type of protection similar to Collision, Uninsured Motorist, etc, and only covers damage caused by an event other than a collision, including theft, vandalism, and fire; weather-related damage; collision with an animal; and stolen rental car.
4. MYTH: Drivers who crash their rental cars are covered by Rental reimbursement while on vacation– About 33% of those surveyed were not aware that Rental reimbursement coverage is provided, while 13% believed in the above myth. However, the fact is that Rental reimbursement coverage only covers the cost of a rental car when the privately owned car is in the shop for repair due to an accident and needs a replacement.
5. MYTH: Cheaper car insurance rate is always possible with Multiple insurance coverage from the same company- More than half (51%) of those surveyed actually believed that if they buy auto insurance policy from the same insurer from which they buy home insurance, they’ll always get cheaper rates. The fact is that there are savings to be had, by dealing with an independent broker/agent who can produce a custom insurance package bearing policies from competing insurance carriers.
6. MYTH: When divers turn 25, rates go down drastically – An overwhelming 60% of those surveyed believed in this myth. It is however, not known by these people that in addition to their age, Car insurance companies consider a range of information such as past claims history and the claims experience for other similar buyers, which could all lead to an increased rate.

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