How to Review Auto Insurance Companies

Before buying car insurance, it is essential to review auto insurance companies to evaluate your options. Because car insurance is mandatory in most states, there are now thousands of auto insurance companies available to choose from. These range from top rated auto insurance companies available in most states to smaller companies which may be only available locally. There are also many “niche market” auto insurance companies that cover particular types of drivers or vehicles.

Why It is Important to Review Auto Insurance Companies

Auto insurance can protect you from potential financial disaster. However, if you choose the wrong company or policy, you may not be adequately protected or you may pay too much. The more knowledgeable you are, the more likely you are to make informed decisions about your policy when it is time to renew.

Factors to Consider in Reviewing Auto Insurance Companies

When reviewing auto insurance companies pay close attention to:

  • Availability: Not all insurance companies are licensed to do business in every state and even those that are may be limited by that state’s mandatory coverage policies. Check with your state insurance department to find licensed companies in your area and to determine the minimum amount of coverage you will need.
  • Financial Status: Unless you are using a national top rated auto insurance company, it is very important to check out the company’s financial standing. This can easily be done online using one or more of business credit agencies, such as Moody’s or Standard & Poor’s. The car insurance industry is very competitive and some companies that try to increase market share, especially by cutting premiums, may not be financially viable if and when you need to make a claim.
  • Customer Relations: Making a claim usually means you have had an accident or other automobile mishap. This can be a very stressful time. The last thing you need in this situation is an insurance company that is not helpful or one that tends to use every trick in the book to delay or reduce payout. When you review auto insurance companies, make sure you consider their reputation for paying (or not paying) claims efficiently.
  • Insurance Coverage: Some companies, because of their customer base or their payout history, offer better rates for different types of coverage or customers. Check to see if any companies offer favorable rates for people in your situation.
  • Discount Policy: Many auto insurance companies offer discounts, for age, sex, driving history, profession and payment method. See if you can take advantage of some or all of these possible discounts by choosing the company that best rewards your strong points.

Reviewing Auto Insurance Companies Online

By reviewing a wide range of insurance companies online and considering both large and small companies, you are likely to find the best rates possible for your given situation.

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