Chicago Auto Insurance, Erratic Rates Pattern Is A Double Edged Sword, Warns Insurance Navy

CHICAGO, IL, March 10, 2011 (Press-News.org) Chicago based Insurance Navy President, Fadi Sneineh, revealed yesterday that 'the continuing erratic behavior in the auto insurance rates is creating some confusion to Chicago car insurance customers. In some instances, there is a different auto insurance rates on each corner of some streets of Chicago.' Competition is the leading cause. This phenomenon can hurt some consumers, but those who sometimes and do their shopping homework can benefit significantly from the fluctuations in the auto insurance rates in Chicago.

The insurance business in the Chicagoland area is regarded as one of the most intriguing aspects of business activities. The wonder of the insurance business begins by recognizing the significant variations in the insurance rates among ZIP codes, even the neighboring ones. "Occasionally businesses and individuals who are located at one corner of a road may be paying much higher than their neighbors on the opposite side of the same street, due to the fact that their neighbors have a different ZIP code," said Sneineh. The vast majority of property insurance carriers do not place too much importance on ZIP codes per se, so you may or may not find any big difference in the rates with regards to properties situated in the City of Chicago, or even in Cook County. The differences are more noticeable in the commercial and personal automobile and trucking insurance businesses.

Almost all of the Chicago auto insurance companies break down the Chicago metropolitan area into numerous 'territories' based mostly on ZIP codes. More often than not, ZIP codes of 606xx, the City of Chicago, seem to be at the uppermost phase in risk when it comes to personal car insurance and commercial automobile insurance in Chicago. Suburban areas next door to Chicago have different territories, regularly recognized as less risky by insurance rating systems. Finally suburban regions that are further away from the City of Chicago, those that are not adjacent to the City of Chicago have the least amount of risk when compared to all communities, hence insurance rates are least costly.

These are the main rules and guidelines. Regardless of those guidelines, a number of insurance companies do not take with these principles in their rating practices. Based on the experience of the individual insurance carrier, that particular carrier may possibly select to have higher than normal or lower than normal insurance rates for certain territory, or ZIP code, based on the positive or negative experience of that carrier in that particular ZIP code.

While this example is not a good news to insurance shoppers, the great news is that the Chicago area is one of the most desirable territories for the insurance industry. The Chicago metro area has large number of insurers, all seeking to making insurance buyers happy, by all means including cost competition. So, if a particular insurance company is charging a person more because the person is situated on the southwest corner than someone else on the opposite corner of the same street, a different insurance company could be doing exactly the opposite of that. This is so true in the territories of the Chicago downtown and surrounding ZIP codes areas.

The effects of these principles on the Chicago car insurance are that folks who live in the City of Chicago and surrounding cities should constantly compare auto insurance rates recommended to them. If they have a good deal with Company A this year, someone might identify a much better deal next year with Company Z. For clients who are shopping for some Chicago used car dealers, towing insurance, the trucking/ cargo, or public transportation businesses, savings can be even more remarkable due to the fact the total premiums are already high and a small percentage reduction translates into large amounts in the final figure.

The leading loyalty that customer needs to show is for quality insurers, first, and price, second. It is fair to state that not all insurance carriers are the same. But, it is also fair to say that there is no single unique insurer that is unmatchable in their levels of quality and service. Certain insurance companies are preferred in their services than others. As long as you are with a preferred or standard insurance provider your next level of interest should be the rate you are paying for your insurance policy!

Getting to a final decision about what is the best for your personal or trucking insurance in Chicago area may be beyond the objective of this release. Nevertheless, it is advised that you transact business with an insurance agent who represents more than a few insurance carriers, one that has the experience to offer to you so that you can take the educated decisions. Dealing with a prepared independent representative is the solution.

Most insurance consumers think that doing business with a 'reputable insurance company' is the answer to all of their insurance questions. In fact this is very inaccurate, according to Mr. Sneineh. A captive consultant, one who only deals with one carrier can only provide help limited to one company. A captive representative can offer you only one choice, the choice to buy from him or her, not other insurance companies! That insurance carrier may not be competitive in your territory, hence you will not have an opportunity to review many other offers offered by other reputable insurance carriers. Also, a captive agent's sponsoring insurance carrier may not offer the sort of coverage you are looking for. For instance, not all insurance carriers offer trailer interchange or long haul trucking.

Insurance Navy http://www.InsuranceNavy.com, an independent insurance agency, represents a fleet of strong insurers to provide the maximum protection for clients. The company focuses on the Chicago & Northwest Indiana markets for low cost auto, trucking & cargo insurance.