Ways To Compare Car Insurance Companies
Research the car insurance company’s consumer track record.
The company’s overall performance, including complaint ratios and financial ratings, can be inferred from ratings provided by A.M. Best, Fitch, Moody’s, Standard & Poor.
State complaint ratios are more important than financial ratings for car insurance. Every state has an insurance guaranty fund that will pay some claims if the insurance company goes bust. It’s still prudent, though, to check up on the insurer’s financial health.
“However, if you’re only shopping every few years, then you should look at the A.M. Best ratings just to make sure the insurance company is financially solvent and can pay you if you need to make a claim,” he says.
– A.M. Best
Compare complaint ratios.
Choosing five to seven companies and checking their complaint records on the National Association of Insurance Commissioners (NAIC) website or on your state’s insurance department website. You can find complaint ratio reports that show the ratio of the company’s U.S. market share of closed complaints compared to the company’s market share of premiums. Using this formula prevents larger insurance companies from being unfairly graded for having more complaints simply due to customer size.
Compare the exact same coverage when comparing car insurance companies.
The best way to save on your car insurance is to buy only what you need. If you have good health insurance you don’t need to pay extra for PIP (Personal Injury Protection), and if you have an older car, you don’t always need to pay for collision insurance.
Most people only need liability coverage and uninsured motorist coverage of $100,000 per person and $300,000 per occurrence. You should establish your desired coverage limits before shopping and then be sure to use those same limits for every car insurance quote.
Check for car insurance discounts
Before you begin comparing car insurance quotes, make sure you know about your potential car insurance discounts for things like bundling home and auto insurance with the same company, good grades, a good driving record, anti-theft devices, and anti-lock brakes. Ask each insurance company for any other possible discounts so that you are comparing the lowest possible rates.
Compare optional auto insurance coverage.
Many insurance companies offer optional coverage for things like rental car coverage while your car is being repaired, towing and labor coverage. You don’t take any optional insurance coverage unless you really think you need it.
However, if one company offers optional coverage that you want at the same price or close to the price of another company’s insurance policy without the optional extras, it may be worth choosing the policy with the options.
Picking an insurance company is made easier by connecting our customers to expert agents. MyMoneyMyQuotes facilitates the customer to receive the best quote that fits their needs.