There are many different car insurance companies to choose from, and most offer similar services and premiums. It can be hard to decide which one to go with—especially when they all promise cheap car insurance and superior service. Keep in mind that there some key factors that can help make the selection process a little easier. When comparing car insurance companies, keep these factors in mind:
Service: One of the most important factors determining your satisfaction with your insurance company will be service. The bottom line is that you should expect to have all your questions answered and your claims process in a fair and timely manner. However, it can be hard to know what kind of service to expect until you have a problem or need to file a claim, at which point it will be too late. So before you commit to a company, research their background and service history. You can start by looking into complaints that have been filed against the company with your state insurance department. Look online for customer reports and ask your friends for referrals. Companies can’t outrun their reputations, and if you do enough digging, you’ll find the truth.
Stability: You should have peace of mind that your insurance company has the financial stability to be able to pay for claims you file. Look for a company that has been in business for many years and has a strong financial history. To do this, you can check the performance of its stock and research financial news that involves the company.
Licensing: Never do business with an insurance company that is not licensed to do business in your state. If you ever have a problem with the company, you can seek restitution or assistance from your state insurance department. If you choose an unlicensed company, you have no such recourse.
Cost: Insurance rates will vary widely at times from one company to another, and they will be determined by a number of variables, including your age, driving record, and vehicle. When comparing costs, make sure you get at least three quotes. You can also check with your state insurance department, many of which issue publications that list what insurers charge for policies in different parts of your state.
Confidence: Finally, no matter the company’s reputation or its rate quote, there is one thing that you must have before deciding to do business with any company: Confidence. Was your experience with the company pleasant? Did you find the employees friendly and professional? Did you feel that all your questions were answered appropriately? Make sure you are comfortable with the company, its policies and its personnel before you sign on the dotted line.