How To Research An Auto Insurance Company

If only finding the right auto insurance company meant simply choosing the provider with the cheapest rates.

Unfortunately, it's more complicated than that―unless you want to gamble that the least expensive insurer also happens to be the best one for you.

So, with this in mind, let's look at smarter ways for researching auto insurance companies.

 

Tools for Researching Auto Insurance Companies

When investigating the merits of car insurance companies, you have an array of tools at your disposal, including:

• Consumer publications

• State insurance departments

• Independent rating agencies

• Better Business Bureau

• Personal contacts (friends, family, colleagues)

• Insurance forums

• Quote sites

• Individual insurance company sites

You shouldn't rely on just a single source to base your decision. Rather, it's best to form a composite look at various auto insurers and receive a comprehensive, objective look at each.

Sure, this takes some effort, and won't be that much fun, but do you really want to rush into a decision about which company you trust to financially protect you in an auto accident?

 

Auto Insurance Policies and Companies: What to Consider

Use any combination of the resources listed above to examine important insurance considerations, such as:

Price

With so much competition in this space, it's silly to overpay for auto insurance. Use a site that compares quotes from multiple providers to get an idea of a fair price for your coverage.

Discounts

After getting a general idea about rates, see what discounts you may qualify for with individual carriers. You could save a significant amount from the initial quoted rate.

Accident Forgiveness and Related Policies

Learn how a particular insurer handles accident claims with regards to rates. Do you have some wiggle room regarding how claims affect your policy, or does a single claim automatically result in a premium hike? If it's the latter, a cheap insurance premium can turn into a costly one in a hurry.

Financial Strength

Find out how independent organizations, such as A.M. Best, Moody's, Fitch, and Standard & Poor’s rate specific insurance carriers. For a fuller look, compare the ratings from a couple agencies. Choose a provider that appears financially stable, able to absorb its claims losses, and will be around for a long time.

Claims Handling

How a company handles claims is a crucial area when it comes to customer satisfaction, leverage the resources listed above and gain as complete a claims picture as possible about your carrier candidates. This means everything along the claims chain, from how you notify a company about a claim, how quickly it responds and handles claims, and the fairness in paying out claims.

Broadness of Coverage

Picking an insurer with the best rates will backfire if your coverage is full of holes. Focus on companies with coverages that provide the most complete protection and the fewest exclusions―even if it means paying a bit more.

Customer Care

It's frustrating when you have a problem with your insurance. And, you're likely already stressed when dealing with a claims situation.

Do you want to compound these negative emotions by having to call or E-mail customer service or the claims department repeatedly to reach someone, and then being treated to rude or unprofessional service?

Learn as much as you can―via consumer publications, online forums, and personal contacts―about the way an insurer acts towards its customers before you become a policyholder.

 

Final Reminder About Researching Auto Insurance Providers

You shouldn't make your decision based on any individual factor or resource. Instead, develop a well-rounded, unbiased look at your insurance company candidates. And, then make your choice.

Doing so increases the odds you'll be a happy customer for years with your new insurer―and won't have to go through this research process again anytime soon.