Buying car insurance is not an option, but rather a legal requirement. In order to obtain the best value for your money, you need to set your priorities, compare reputations and financial standing of each insurance provider and ultimately compare quotes. Conducting such checks is vital, as a company may have a solid financial base, it may score low on aspects such as reliability and customer care.
List Down Your Priorities
You need to list down the amenities and coverages that you want in a car insurer. Do you only want cheap car insurance? How will choosing the cheaper option affect your coverage? Do you want an insurer that is reputed for excellent customer service? One which promptly responds to your claims?
You need to define your priorities before you embark on hunting for auto insurance. In actual sense, it is presumed that you want to sign up with an insurer who provides excellent coverage at a price you can afford and still benefit from great customer service.
Rank Each Insurer on Basis of Financial Standing and Reputation
Once you have compiled a list of the potential car insurance providers, conduct investigations to evaluate each company’s financial standing and reputation.
First, you need to confirm whether an insurer is licensed to provide auto insurance solutions in your state by visiting the website of your state’s Department of Insurance. If complaint ratios are available, note them down too.
Second, compare the financial standing of each company on websites such as A.M. Best and J.D. Power. This guarantees you that you will be compensated without any hassles.
Lastly, compare the reputation of each company as viewed from customer perspective on Better Business Bureau. Strike out any company that appears to have elicited a lot of customer complaints.
Evaluate Quotes of Each Insurer
You need to look at car insurance quotes provided by at least three companies. Enquire from your friends, coworkers or family members about their auto insurance companies. For example, how long have they partnered with the company? Are the rates okay? Is customer service excellent?
Don’t forget to also list down auto insurance firms that offer incentives such as good-driver rewards programs or discounts. You can also enquire about firms that bundle insurance policies, as some are known to offer discounts if you sign up for two or more insurance options (for example, buying homeowner insurance and car insurance as a single package).
Finally, visit each company’s social media profiles on sites such as Twitter and Facebook to check how they answer your queries on matters such as discounts and coverage.
Always Review Your Coverage
Once you select your car insurance provider, don’t rest on your laurels. Most companies reduce premiums for some life events like lowering premiums as you get older (usually if you are 25 and older). You can also get lower insurance premiums if you move to a low-crime neighborhood, buy a new car with improved security features, get married or if you purchase a new home (If you have multi-line insurance)
Your car insurance rates can also go up if you move to a high-crime area or a neighborhood with higher accident rate. Traffic violations can also drive your premiums up, so do the habit of constantly filing for claims.
Still at Loss? Let an Agent Handle it Instead
If you are still undecided on which car insurance company to partner with, visit an agent to help you. There are two types of agent; a captive agent, who normally deals in products of one insurance company only; and independent agent, who deals in products offered by several insurers.
Since an agent wants to keep you satisfied, he will guide you through the whole process until you choose the insurer who offers the car insurance that best matches your needs.
Remember that choosing car insurance isn’t about selecting the cheapest one on offer.
