How To Find A Reliable Auto Insurance Company

When you think about shopping for car insurance providers, you probably think about looking for companies that offer the exact coverage you need at the lowest possible rates. Finding a company that provides the most discounts is probably high on the list, too.

However, shopping for a reliable auto insurance company is a bit different. Sure, you still want one that will give you the most coverage for the lowest rate, but the keyword here is reliable.

 

1) Look for Licensed Auto Insurance Companies

In order to sell auto insurance in your state, a company must be licensed in your state.

It’s quick and easy to find out which car insurance providers are licensed in your state: Just visit your state’s department of insurance website to find a list, or call and ask a department representative for one. By contacting your state's insurance department, you can also find out the liability insurance requirements you must meet.

NOTE: Requiring auto insurance companies to be licensed in each state in which they do business protects you―the consumer―should something go awry with, say, your overall coverage or a claims process. State insurance departments work to regulate the insurance market and can help you if there’s a problem you can’t resolve with your company directly, but the department can only help you if the company is licensed in the state.

 

2) Research Each Car Insurance Provider’s Ratings

When it comes to factors like the following, the higher a provider's rating, the better the chance it's a reliable auto insurance company:

• Coverage options.

• Cost.

• Claims processes.

• Overall customer experiences and satisfaction.

• Financial strength.

To find these ratings, start with companies like J.D. Power and Associates, A.M Best, and Standard & Poor’s.

 

3) Find Out What Others Say About the Companies

Finding out what an independent company says about a particular car insurance provider is helpful, but you shouldn’t overlook the importance of talking with folks who’ve had direct experience with the company.

Start by:

• Talking to people who’ve had―or currently have―coverage with the company. These people might include friends, family members, neighbors, and co-workers.

• Talking to people who’ve done other types of business with the company, such as auto body shop managers.

• Finding out what other current or former policyholders have to say about the company. The Better Business Bureau allows you to search specific car insurance companies (or find a list of companies in your area) and view any customer complaints and government actions related to a company.

 

4) Do a Test Run With a Customer Service Rep

Of course, whether you’re buying coverage from a local agency with a brick-and-mortar location or a company that does most of its business via the Internet and telephone, you’ll want to talk with someone at the company yourself.

Before you contact a representative, jot down a few questions to ask. The answers themselves are important (after all, they’ll help you decide whether the company offers the coverage you need for prices you can afford), but also pay close attention to how the answers are given.

Notice whether the agent:

• Speaks to you in a friendly manner.

• Makes you feel as if your phone call (or visit) is important, even though you’re not yet a paying customer.

• Is able to quickly find answers to your questions if he or she doesn’t immediately know the answers.

• Becomes defensive or remains cheerful during conversations about claims processes.

• Gives you information about all discounts for which you’re eligible, or only lists one or two common discounts the company might be able to offer, such as the full payment auto insurance discount.

 

5) Evaluate Your Own Experience

Finally, it’s time to consider your own experiences with the company.

Think about matters like:

• How upfront the company was regarding discounts for which you were eligible.

• How the company handled any late payments you made.

• How the company handled any auto claims you filed or claims that were filed against you.

• How your agent or a company representative treated you during any visits or phone calls.

It’s best to do this evaluation about a month or so before it’s time to renew your auto insurance policy―giving yourself that window of time helps make sure you’ll be able to switch car insurance providers without any lapses in coverage if you find you’re not happy with the one you chose.