Introduction
Many insurance companies already spread throughout the market. Those insurance services usually offer different marketing strategies to attract their potential clients and keeping their other existing clients. The area of the insurance services is diversified and the competition is extremely high. Still, it is a big disappointment when people often ignore their offers because of the lack of information regarding the different benefits they can gain, the importance of insurance and other related issues.
Background of the Study and Problem Statement
Due the involvement of too much technology and their application in human lives, there are times that security of the one who is engaged in the usage of such technology is taken for granted. In purchasing a automobile or vehicle, the dealer usually offers a kind of auto insurance that can help to protect not only the driver but as well as the passengers and the vehicle to avoid financial. It is understandable that the auto insurance should be compulsory but what is the importance of having auto insurance or other insurance services?
Research Objectives
The objectives of the study were divided into two. First is to promote the importance of auto insurance in the driving career of an individual. And second is to establish a strong idea about the compulsory action of buying insurance when buying a car or other vehicles. These objectives are important characteristics of the study with respect to the insurance services.
Research Questions
The study managed to identify the three of the other important questions with regards to the insurance services.
1. What are the common traits or offers of auto insurance?
2. What are the assumed benefits that a victim can realize through the use of his insurance?
3. What are the challenges that the insurance services are facing?
Literature Review
There are only two possible reasons for the importance of auto insurance. The first reason is through the existence of the law because states usually required the auto insurance so that, in the event that there is a great road accident, there is a minimal problem on the impact of damages. The second reason is for the financial, medical, and personal protection of the driver and his or her family. Being a driver holds an incredible amount of responsibility and he should set his eyes clearly on the road to avoid the accident. The responsibility of the driver is not only for himself but also for the other victims in the road accident. Nowadays, the auto insurances are also offered in most of the banks and sometimes through the online transactions (Pintar, 2000). However, there is a great challenge among the set of many insurance services, activity, practice. The amount of competitors is one of the challenges but the ability of the insurance companies to provide the kind of service they promised. Most of the insurance organizations are misusing the fund which leads to the drastic situation of their clients (Siegelman, 2004). This is the most important issue that makes the competency of the other insurance services falls. The demands of the clients to receive the coverage with an immediate action are highly anticipated (Yelen, 1993).
Methodology
The applied method of the study is the use of the secondary information that mostly can from the company reviews of different insurance services. The broad definition of the insurance services makes it harder for the entire study to identify the potential answer regarding the importance of insurance in the market. But through the assistance of the secondary information, the study enabled to review, compare, and measure the different offers of the various companies. It also allows the study to conduct its own analysis and conclusion which is a sign that the paper is meeting its goals.
Conclusion
A good driver should be only good in driving but also in keeping him and his family safe on the road. But there are times, where people can’t predict what will happen, and that is the short-cut war-cry of most of the insurance companies. They will provide the things when you need it most.
References:
Pintar, J., (2000) “Online Insurance Opportunities for Bankers”. ABA Banking Journal, Vol. 92, No. 11.
Siegelman, P., (2004) “Adverse Selection in Insurance Markets: An Exaggerated Threat”. Yale Law Journal, Vol. 113, No. 6.
Yelen, S., (1993) “Withdrawal Restrictions in the Automobile Insurance Market”. Yale Law Journal, Vol. 102, No. 6.
