Question

In AT LEAST 100 WORDS answer the questions below giving more than just an opinion.

1) Consumers commonly focus on the price when buying auto insurance. They feel less pain from buying auto insurance by paying as little as possible.

Can this strategy backfire? How?

Would lower premium costs cause you to change insurance companies?

What is the risk with this strategy?

Answer 1

1) CONSUMERS COMMONLY FOCUS ON THE PRICE WHEN BUYING AUTO INSURANCE,THEY FEEL LESS PAIN FROM BUYING AUTO INSURANCE BY PAYING AS LITTLE AS POSSIBLE CAN THIS STRATEGY BACKFIRE?HOW? WOULD LOWER PREMIUM COSTS CAUSE YOU TO CHANGE INSURANCE COMPANIES WHAT IS THE RISK STRATEGY?
A) Insurance itself is a strategic game with all the things to look after it often gives the luxury to have more money by showing its offers or trends that follow under the scheme.But the latter game have been played at the installments it involves lot of things that even we wont consider it has more amount that even does not have a balance sheet or it can be treated as black money.insurance is a big gamble to play if we play well we may take the fruits and enjoy it,but if we wont pay even a single installment they wont even consider our effort and finally it looses in vain and like this the insurance companies are having higher and richer amounts to reap and that is the whole idea behind the insurance

yes it will back fire because it has been an alliance where now a days if we book for train or bus or flight it is asking to have insurance of 5 rs or less than that per person ok lets think we have paid and we have reached the destination safely.so we lost 5 rs,we thought just 5 rs but just think daily around 500000 people travel around the world it half of it that is 250000 people pay it the amount would be huge that is 250000*5=12500000 so thats the difference and more over  some how some are losing lives that takes away around half that would be 550000 so still they are gaining considerable profits thats the thing to be noted here.so that is the risk that is involved in here and it continuous to be threatening.