Choosing an auto insurance company can be a confusing process. Picking the company simply on the lowest premiums may not be worth it if their customer service is bad, or if they won’t pay for your claims. Car insurance rates can vary dramatically among insurance companies and also depend on the kind of coverage you choose and your background information. Examples of such background information are your driving experience, age, marital status, vehicle safety equipment, and driving frequency. To make a wise choice, you should research the company before choosing one to insure your car.  

Overall, you should select an insurance company with fair rates, financial strength and good service. 

Here are some things to look for:

Financial Stability and Ratings

Researching an auto insurance company’s financial stability will prove your car insurance provider’s ability to pay claims. Many companies rate insurance carriers, including Standard & Poor, A.M. Best and Moody’s Investor Services (These are available in most public libraries). You can also check with Consumer Reports for ratings of car insurance companies. Your state insurance office can provide you with rankings of insurance agents relative to others in your area.  Another thing to check is how long the company has been in business. That may provide some indication of stability.

Licensing

Check to make sure that the insurance company is licensed to offer insurance in the state where you live. This means that you may have the ability to seek assistance from your state insurance department if there’s a problem.

Customer Service and Satisfaction

When looking for a car insurance company, you should also research the customer service and satisfaction ratings.  You can find this kind of information online, or by contacting your state insurance regulatory office, or the Better Business Bureau (BBB). Another excellent source of information can often be found by asking your coworkers, friends or family. Find out what insurance companies they have experience with, and how they feel about their experiences as a customer with those companies. You can also check with a local body shop to see what insurance companies they would recommend, since they deal with insurance claims day in and day out.

Availability of Local Agents

Is it important to you to have a responsible and knowledgeable insurance agent located in your local area? It can be reassuring to have a local agent who you can call if you have a claim, or any administrative issues. The right agent can be very helpful in making decisions, and explaining what the right levels of coverage might be for your specific situation. Many larger companies have networks of agents all over the United States. If you are comfortable with not having a local agent, you may be able to save money by comparing online quotes from any number of nationwide insurance providers.

Ease of Submitting Insurance Claims

The speed in which the insurance company responds to claims may also be something to consider. When you have an accident or some other claim, or are in need of roadside assistance, it may be critically important that your insurer responds quickly. Many of the larger insurance companies offer 24/7 assistance by calling a special claims hotline. You can find statistics for claim handling through various sources online, or by contacting the company directly.

Compare Rates and Discounts

Shop around, and find which companies offer the best combination of premium rates, reliability and discounts for your situation.