California Auto Insurance: A Hybrid Insurance Policy ?

California Auto Insurance – I recently read that Honda is planning to come out with an affordable hybrid gas-electric model in 2009. It is part of their effort to re-establish themselves as the leader in fuel-efficient green automobiles.

Toyota is definitely leading the pack now in that arena with the Prius. This is great news for all of us drivers who want the savings a hybrid brings (not to mention the positive effect on the environment!), but could not afford the Prius. This, by the way, is a classic example of the beauty of a capitalist society – when competition benefits the consumer.

California Auto Insurance: A Hybrid Insurance Policy ?
Image : thedrive.com

If only insurance companies were designed the same way! Oh sure, they’re in competition with each other in a way, but they will never be completely in consumers’ control because insurance is required by law.

I live in California and I unfortunately have recently become qualified for California high risk car insurance. (Yippee!) From the moment I was informed by the California DMV that I was in need of SR22 insurance, I began praying that auto insurance would no longer be required by law.

This is a futile dream, however, and pretty dumb as well. Cars are dangerous and until the day health care becomes universal, California auto insurance is a necessary evil. If I were to get badly hurt in an accident while uninsured, it would put a far bigger dent in my pocket than any insurance premium could.

So, what to do? I felt like I was banging my head against a brick wall ever since the day I received that fateful high risk auto insurance verdict from the DMV. I was stuck between the proverbial rock and a hard place. That is until I discovered this wonderful thing called an insurance broker.

Think of the broker as hybrid car insurance. Using an insurance broker saved me lots of money because they had such a large variety of insurance programs to choose from. You see, a broker makes “agreements” with various insurance companies to offer/sell their programs to potential customers.

By the way, you, not the insurance carriers, employ the broker. This makes them work even harder for you. (Please do not confuse the broker with the insurance agent. The agent is the opposite, actually- employed by the carrier and limited to offering the insurance programs of that carrier).

The minute I made the decision to use a broker, I started to breathe easier, and that feeling only multiplied with the passage of time. Take it from me folks. Use a broker!