Village Auto Insurance

In most jurisdictions auto insurance is compulsory for at very least, injured third parties. This being the case, the auto insurance industry has an inherent demand that the industry will collectively seek to exploit to the fullest extent possible. Curiously, this has had a positive impact on consumers of auto insurance as the intense competition between insurers has forced innovators to enter the market in a bid to grasp market share from their competitors. The underwriting process has not changed; insurers are specialists at gathering data about particular eventualities. Armed with this information, they segment the population into car models, locations, garaging practices and driver age categories. If anything, they will further segment it into a driving history category, but essentially they will quote insurance freely on this basis. Using the median probabilities for each segment, the insurer charges the policy holder a premium reflecting the theoretical edge they retain.

Village auto insurance is available from offices in almost every state, and in the same vein as the rest of the industry they attract customers by offering excellent service and good rates. They are a large corporation with asset backing and a sound financial reputation. Further, they aim to deal with claims as efficiently as possible in order to ease the anxiety and inconvenience of the policy holder who has met with misfortune and files a claim on their Village auto insurance policy. As one of the larger competitors in the insurance market, Village auto insurance is but a mere arm of a much broader insurance base that insures land, property, commercial enterprises and also public interests.

Village auto insurance relies on exceptional customer service which is valuable to consumers, and it invests heavily in promoting a market presence in order to retain and expand its customer base. Smaller competitors, however, are far more focused on providing real cost savings to customers, while making the same promises for customer service, with the exception of a much cheaper premium charged to the policy holder.

The New Breed of Insurers

While the underwriting process implements a high level of abstraction and charges premiums based on a demographic constituted of tens of millions of individual candidates, as the demographic used for inputs into the underwriting system increase in number, the results too will cease to remain accurate. This being the case, many newcomers to the insurance market have sought to capitalize on this anomaly and concentrate their demographic by segmenting the population to a further level of abstraction such as the number of miles travelled. They then offer insurance for that very amount over a specific period of time. In essence they are now able to commoditize the same product that Village auto insurance sells, by selling what is effectively a license to be insured for a set number of miles. This slight shift in ideology is the source of the markedly lower rates that are emerging at present.

Clearly, a fundamental issue remains in whether the insurer has the financial credentials to indeed honor its obligations. Unlike Village auto insurance, many smaller insurers offering such attractive premiums may have balance sheets and asset security that pale in comparison. Despite regulation enduring to govern the insurance industry, the innovation and creativity of financiers will most likely continue to test the boundaries of legitimacy. Therefore, it is wise to verify the integrity of an insurer prior to purchasing a policy for it will be often found that the larger competitors while more expensive, will provide the security of recovery when mishaps arise.