Setting your priorities, checking reputations and financial standings, comparing quotes—shopping for the best car insurance company for your needs might seem daunting unless you tackle the process one step at a time.
Know What You Want
Understand what coverages and amenities you're looking for
in a car insurance company. Are you solely looking for cheap auto insurance?
How might choosing the cheapest option affect your actual coverage? What about
customer service—that's important, too, right?
Know your priorities before you begin looking to buy car
insurance. Ideally, you'll want a company that offers great coverage at an
affordable price from customer service-oriented agents.
Check for Reputation and Financial Standing
Once you've found a few seemingly compatible car insurance
companies, do some investigative work and check out the companies' reputation
and financial standing.
First, check with
your state’s Department of Insurance website and make sure the company is
licensed to sell auto insurance in your state.
Also, take a
look at complaint ratios, if available.
Then, look at the
companies' financial standing on reputable websites such as J.D. Power and A.M.
Best.
Auto insurance
is a two-way street: you pay for the coverage and your company provides the
coverage. You need to make sure your company can pay your damages when
required.
Finally, find out
how the companies stand with the Better Business Bureau (BBB).
The BBB ranks
companies from A+ to F, and gives you a multitude of information about those
companies, such as the length of time they have been in operation and
information about customer complaints (including resolutions).
Compare Car Insurance Quotes
Consider these tips when comparing auto insurance quotes:
First and
foremost, never look at just one or two car insurance companies; always get and
compare at least three quotes.
Talk with family
members and friends about their car insurance providers.
How long have
they been with the company?
Are they
satisfied with their rates?
What about
customer service? How has the provider handled their premiums in the events of
traffic violations, at-fault accidents, and other common premium-increasing
situations?
Look for auto
insurance companies that offer discounts and good-driver rewards programs.
Some companies
provide breaks for drivers of certain ages or for drivers with anti-theft
devices.
Others offer
rewards (e.g. lower premiums) for drivers with consistently good driving
records.
Ask about bundling
insurance policies.
Also known as
“multi-line coverage," some companies provide discounts for purchasing two
or more lines of coverage (such as car insurance and homeowner insurance).
Check out the
companies' social media accounts.
Reach out to
your potential insurance companies on platforms such as Facebook and Twitter
and evaluate how they respond to your questions about issues such as coverage
and discounts.
Remember, comparing car insurance quotes is never just about
what's cheapest.
Periodically Evaluate Your Coverage
Getting great car insurance coverage at an affordable rate
is fantastic, but don't get complacent. Many companies decrease premiums for
certain life events, such as:
Buying a new car.
You might get lower rates if you purchase a new vehicle with great safety and
anti-theft features.
Moving. Living in
low-crime areas tends to get you lower premiums.
Getting older.
Mature drivers (generally those who are 25 and older) often benefit from lower
car insurance rates.
Getting married.
Combining two insurance policies into one can save you money. Married drivers
are also viewed as more responsible and often see lower rates.
Purchasing a new
home. Remember multi-line insurance? You could get a discount if you insure
your home with the same company.
Of course, some life events can increase your rates—which
means you'll want to talk with your agent about ways to decrease them or even
start comparing quotes from other providers. Such situations include:
Moving. Again,
moving can affect your car insurance rates, and in this case moving from a
low-crime area to one with a higher crime or accident rate might cost you.
Filing claims.
Each claim you file can increase your rates—especially claims for at-fault
accidents. Talk with your agent about ways to decrease rates or avoid rate
hikes, or consider shopping for another provider.
Traffic
violations. Similar to filing claims, the more traffic violations and driving
points you accumulate, the higher your premium could become.
Adding a teenager
to your policy. Often, increased rates when adding a teenager to your policy
are unavoidable; however, if you feel the premium has become too high, talk
with your agent about ways to decrease it (such as teen driving courses) or
start looking at other companies.
Simply put, whenever you experience a life event that might
decrease or increase your rates, it's time to evaluate your coverage and
perhaps even start comparing quotes from other providers.
Consider Working with an Agent or Broker
The difference between car insurance agents and car
insurance brokers is that, generally, agents work with one company while
brokers work with several companies.
So, while an agent can help you get the best coverage and rates
from his or her particular company, a broker can shop around and help you find
the best coverage and rates from a number of companies. Keep in mind, however,
they may charge you a broker fee.
Unless you feel comfortable shopping around on your own or
have your heart set on one company, you might want to consider consulting an
agent or broker about your car insurance needs.
Source : http://www.dmv.org/insurance/how-to-choose-a-car-insurance-company.php