Selecting the best auto insurance company can be a daunting task. There are a number of variables to consider, and there is much at stake. You must find an insurance company that is financial stable, one that will live up to the obligations that are defined in your insurance policy. At the same time, it is important to pick an insurer who offers competitive rates. You don’t want to be stuck with a company that is overcharging you for coverage you could find much cheaper somewhere else.
Essentially, though, no two people’s insurance needs are exactly the same. So, how does one go about choosing the best automobile insurance for their specific needs? And how can a person find the best rates that are available?
The answer is simple – research. You need to empower yourself so that you can make informed decisions regarding your insurance needs. No one should select a car insurance company at random. Nor should one decide upon a particular insurer because it happens to be the easiest, most convenient option.
However, this research doesn’t necessarily have to be complicated or time consuming. Use the following tools and techniques to quickly determine what car insurance company is the best one for you.
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JD POWER RANKINGS
This is a great starting point to begin your research. The J.D. Power Consumer Center has been conducting customer service surveys for over forty years. They rate auto insurance companies in five categories: overall satisfaction, contacting the insurer, policy offerings, billing and payment, and pricing. Their data is generated directly from consumers who have purchased automobile insurance, so the information is accurate and unbiased. Visit their site at: www.jdpower.com
A.M. BEST & STANDARD & POOR’S RATINGS
A.M. Best and Standard & Poor’s will give you an indication of the insurance companies’ financial strength. This is a measurement of an insurance companies’ ability to pay for a claim. You want to make sure the insurance agency will able to back you in case of a significant loss.
Now, if you are leaning towards buying insurance from a major carrier, such as State Farm or Allstate, these ratings may not be of much use to you. There isn’t much risk involved with buying insurance from a major carrier, as they are financially secure. However, if you are interested in buying from a smaller carrier, then it makes sense to investigate their credit rating. After all, insurance companies evaluate your credit, why shouldn’t you do the same?
A.M. Best judges insurers on a grade scale, from A++ to D. Some companies have ratings of E (indicating regulatory action regarding the company's solvency), F (in liquidation) and S (suspended). As a general rule, you shouldn’t consider an insurer that has less than a B rating.
The Standard & Poor's ratings range from AAA to CC. Also, there are ratings of R (under regulatory supervision) and NR, for "not rated." Again, don’t consider an insurer who has less than a BBB rating. Visit their sites at: www.ambest.com and www.standardandpoors.com
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Go To Your State’s Department Of Insurance Website
Every state has a department of insurance, and every department has a website. The department of insurance is in charge of regulating insurance within the state, and different states have various rules regarding automobile.
Most state sites also have consumer feedback that rates an auto insurance company. This information is particularly handy because the feedback is from folks that live in your area. These are your neighbors, and how the insurance companies treat them is a good indicator how they will treat you.
One useful feature that can be found on some state sites is the “complaint ratio.” The ratio is based on how many written complaints the department receives about an insurer. If an insurance complaint has a high complain ratio, then this might be a red flag.
Ask Around
Sometimes the best resources are those are immediately around you. Ask friends, colleagues, relatives what car insurance company they use, and what their experiences have been. The advice your associates supply is often invaluable. If a friend endured a nasty claim process with one auto insurance company, most likely you will avoid this company based on their recommendations. Poll your friends, get a sense of what insurer is most popular and why.
Get A Free Quote
It’s easy to get a free car insurance quote. Just fill out quote form here at quote Cheap Quotes Car Insurance and within minutes you’ll have a quote! We recommend getting at least three quotes to ensure that you receive the best rate. It will only takes minutes, it’s free, and it is the best way to get the cheapest auto insurance available!