Choosing the right auto insurance company can make a huge difference in the price you will pay for your car insurance. Companies offer very different premiums to individuals based on a number of factors like driving record, age, type of car driven and where you live.
It is important to compare at least three different car insurance companies and the products they offer, before making a choice on car insurance coverage. Each auto insurance company you investigate will offer a slightly different set of coverage options and benefits.
Here is what you need to know to make sense of all of the different options available from the various car insurance companies.
Car Insurance Companies: Comparing
When you are trying to decide which of the auto insurance companies to use in order to provide yourself with the protection you need, it makes sense to do a little research. Car insurance costs more than washers, dryers, lawn mowers and other things we often research before buying. Therefore, before you decide on a company based on price, learn a little about them too.
By consulting the independent insurance ratings companies like those listed below, you will find out how financially stable the insurer is. It is important that the company you plan to do business with is around for the long haul. Some of the more well known insurance ratings companies are:
- A.M. Best
- Standard and Poor’s
- Moody’s
Another aspect to research is the company’s claims processing speed and customer satisfaction ratings. Often from doing a quick online search, you can find out if a company is slow to pay its claims and if customers commonly have complaints about them. In many states, the department of insurance keeps a database of complaints and you can access the information in order to help you make the best possible decision.
Car Insurance Companies: The Similarities
Auto insurance companies have many similarities because they work on the same principles and are often regulated by the state governments. This means that for the most part they are very similar entities, however they often strive to differentiate themselves in a market that may be overrun by competition.
Some of the major points they have in common are:
- Rates for each company are based on driving records, type of car, location and how the car is used.
- Each insurer offers standard plans that meet the minimum state requirements, nothing less; but also offers much more extensive plans also.
- They provide the documentation needed by law officials and financing companies who require insurance coverage.
So your choice of the most appropriate provider for your or your families needs is likely to be based more on the differences than the similarities.
Auto Insurance Companies: The Differences
Since each auto insurance company does indeed try to set itself apart from all the others, there are many different offerings that you must look at when making a decision about car insurance. The differences between the companies are a good thing for customers, because in their efforts to appeal to a niche market, they offer things that are enticing to certain people.
Some of the differences amongst the auto insurance companies are:
- High-risk specialization: Certain companies specialize in offering coverage to insurers who are normally considered high risk.
- Free or low cost additional coverage: Many companies will add free or very low cost extra insurance to the plans that they offer such as roadside assistance, towing and labor coverage and more.
- Payment Plans: Companies offer a variety of payment plans to make it as convenient as possible for insurers. Some even offer no interest financing if you use certain types of payment options.
- Accident forgiveness: There are companies in the marketplace that realize even the best of drivers sometimes have accidents. If you have only had one accident within a pre-set time-period, these companies give you accident forgiveness and your rate does not increase as a result.
Only you truly know which of these factors are best for your needs. Once you’ve made that determination, be sure to shop around a bit for any discounts available to you.
Auto Insurance Company: The Discounts
Practically every auto insurance company offers discounts to individuals who meet certain criteria. These are above and beyond insurance rates and include:
- Anti-lock brakes and air-bags in a vehicle
- Anti-theft devices on the car
- Discounts for members of preferred groups
- Driver’s training course discounts
- Multiple car discounts
- Multiple lines of insurance coverage discounts
- Good student discounts
- Discounts for underage drivers who live away from home while at school
- New car or economy car
- Senior citizen discount
Some insurance companies offer discounts that are relatively unique, such as:
- Discounts for specific professions like teachers
- Discounts for certain types of university degrees, like engineering or science
- Military discounts
- Discounts if you subscribe to certain magazines
Most people aren’t aware of these discounts and don’t think to ask. However, it’s one of the best ways to lower the costs of auto insurance.
Auto Insurance Company: Tips For Getting The Best Rates
When looking for the best possible auto insurance company to meet your needs, you should keep these things in mind:
- Shop around and compare several companies before making a decision.
- Ask if you have all the possible discounts that you are eligible for.
- Review the coverage to make sure you have exactly what you need and nothing more, unless it is free.
- Read the fine print.
- Before you buy a new vehicle, check to see how much it will cost to insure it. If it has more expensive parts than average or is at high-risk of being stolen, you may incur higher insurance premiums. By checking before you buy and altering your buying decision, you may save a lot of money over the life of the vehicle.
Just by asking a few good questions, you greatly increase the chances of saving money and getting a policy that truly meets your needs.
Auto Insurance Companies Offering Coverage In The U.S.
Even though, there are hundreds of auto insurance companies offering insurance throughout the United States, the list below includes the most commonly known insurers in the country.
- State Farm
- All State
- Liberty Mutual
- GEICO
- AIG Direct
- The General
- Nationwide
- Progressive
- Farmers
- Mercury
- Chubb
- Esurance
Compare Free Car Insurance Quotes From Multiple Auto Insurance Companies Now!
It has never been easier to get quotes from a variety of auto insurance companies than it is today. By using a free online quote tool, like the one at the top of this page, you will get quotes in no time.
Simply return to the tool box, enter your zip code and answer some questions. You’ll be on your way to multiple quotes from top insurers that offer coverage in your area, and ultimately end up with the best auto insurance company for you.
Compare car insurance quotes today!