One of the reasons people hold off from checking prices from various providers is that they are influenced to believe products on offer are significantly different. Lately, it is getting clearer that motorists want to believe cheap auto insurance quotes they received online can replace their expensive policies. Once you agree to this statement it is easier to save money year after year.
Characteristics of Commodities
They are essential parts of our lives and the world would face serious problems if there were a shortage of them. For example, a wheat or rice shortage could result in serious famine all over the world. A recent oil and gas shortage is causing havoc in economies all over the world and seen as one of the main reasons for inflation. What would we do without our coffees in the morning too.
Can one distinctive characteristic of commodities be applied to policies? That is the question to be answered here. They are easily substituted no matter who the supplier is or where they are grown. You can replace wheat you used to buy from Argentina with the one you can buy cheaper from Azerbaijan.
That is the beauty of them and that is why their prices are stable and checkable all over the world. The only difference would be transport costs and internal government policies. They don’t like to be dependent on other countries for something so essential. So, many countries keep large reserves of various commodities.
Vehicle Insurance Applications of the Idea
When you have a rigid idea in your head that your current insurer is the best and their products cannot be replaced you are shooting yourself in the foot. You are limiting your options substantially. When it is you that refuses cheaper car insurance rates on the grounds that they are not the same as your great package there is not much can be done about it. You just have to cough up the money they demand.
In comparison, most drivers like to believe that policies and their add-ons are pretty similar from one company to another. Just like commodities they can be interchanged and replaced like for like. They know very well that it is not really the case and probably never can be. However, this thinking helps them a lot in many ways.
For example, they can now comfortably start shopping for automobile insurance online through many companies. Once you start thinking that you will get cheaper quotes in a minute it becomes easier to find them and start saving money. These motorists find it easier to go through the forms and complete the process in no time.
Are The Policies Really the Same?
Of course, it would be naïve to think that two totally different companies would write a policy document independently and they would be the same. Nevertheless, there are standard wordings on policies that are accepted as good practice. Some companies knowingly step out of these norms to offer cheaper auto insurance policies to their customers.
Often, the differences are just a nuance. They may not be a problem in an open and shut case claim. But they may be a problem when the outcome is pretty much dependent on the interpretation of the policy wordings.