Utility of Service :: essays research papers

Utility of ServiceProperty and casualty insurance policy, more specifically auto insurance, is an intangible overlap and is a service purchased by consumers that they want they never have to implement. This is contrary to most any other ingenuous or service. You would not buy a car to never use or go to a doctor and pay for treatment you do not expect to receive. The consumer pays for a promise that they hope to never watch on. As a result the service is viewed rather negatively by the pubic and becomes an item that must be purchased out of fear of injustice and by order of state statutes.Consumers have several needs that acquire the purchase of auto insurance policies. The first requirements being state statutes that code certain coverage before registering and tagging a vehicle, maintaining a valid drivers license, and grateful the demands of financing companies for purchased automobiles.The second reason for obtaining auto insurance policies is to protect the catamenia assets and potential future earnings from loss. These loses may occur from damage resulting from acts of nature, collisions or from liability claims award to injured third parties. The purchase of insurance protects the consumer from pecuniary losses up to the limits of the policy. This provides peace of mind for the consumer and for financing companies by ensuring that monies argon available to cover losses so the life and economic stance of the purchaser is not impacted.Comparative or Substitute services indemnity is insurance. There is not a substitute unless that is a well-padded bank account. realistically that is not even a substitute as losing $100,000 of an individuals hard realize dollars to one claim is far more impactive than that same person having salaried premiums of $1000 per year for ten years before making that claim. The insurance company would then pay on that persons behalf, wherefore resulting in an overall outlay of $10,000 from the consumer that is far m ore palatable by any account.Price ElasticityThe insurance industry is generally outlay elastic in the state of Florida. This is due to the regulations requiring drivers to carry at least(prenominal) two types of coverage. This requirement changes to three forms if the driver is involved in an possibility causing injury to another party. The price may change for the product due to the individuals driving or claims history or the rating expression from company to company.