Comparing auto insurance policies is a must before deciding which company to deal with and which policy to buy for your car. If you’ve tried searching online, you may have noticed that there are literally hundreds of companies in the United States alone that sell auto insurance policies.
The first thing to find out is the age of the Insurance Company. Find out how long they have been in business. This is important because you don’t want to deal with a company that is relatively new and perhaps inexperienced.
The financial status of the insurance company is also something to consider. When you take out an insurance policy with a company, you are essentially handing over your monetary responsibility in case something goes wrong. Could the insurance company handle that liability if they are financially drained themselves?
A good way to assess the financial condition of an auto insurance company is to look at independent ratings from third-party companies that evaluate the financial positions of various insurance companies and give appropriate ratings. Because of their independence from auto insurance companies, you can trust their ratings. AM Best, Moody’s and Standard’s and Poor’s are some of the independent analysts.
Request a car insurance quote from the company and see how they treat you as a potential customer. You would like your insurance company to be as customer friendly as possible, as you trust them with your potential monetary liability in the event your car is in an accident.
Insurance company agents should be easily accessible. This is perhaps the most important factor above price. Easy access means they won’t work when you call them after an accident.
Compare price quotes from different insurance companies. Don’t immediately look for the lowest price. There may be some companies that offer lower prices but also offer poor coverage for your car. Don’t risk adequate auto insurance coverage in favor of a lower price.
Finally, it’s important to decide in advance what form of coverage you’re looking for for your car. It is a well known fact that insurance salespeople are some of the most convincing salespeople on the face of this planet. Prepare before you meet one of them and stand your ground!
