Deciding on a car insurance company can sometimes be very frustrating because there are so many to choose from and so many reasons to choose. Television commercials don’t help the problem either because they all give such great reasons to choose their company without really defining why this makes them different. What you need to have to choose is a good idea of what is important to your situation and your future.
The following five reasons are not numbered because they are closely related and are of varying importance depending on your situation. These are five good reasons to find the best car insurance company:
Car insurance laws are determined and regulated by each individual state, meaning large national companies must be diligent about licensing. You need to know if the company that you are considering being insured with has licensed adjusters and agents working for them. For buying online you don’t need to know about the agent as you won’t have to use one.
However, for future peace of mind, you need to know if the adjusters are licensed with the state so you don’t get mistreated. You can bank on the larger insurance companies following these guidelines, but be weary of the fly-by-night companies that you stumble onto on the internet.
Nothing is more powerful with car insurance than the price of the service itself. What causes this, according to one industry insider, is the intangibility of car insurance.
“What makes selling insurance difficult is the fact that it is not something that someone can see or feel. Add this to the fact that many people may never need it and it becomes especially difficult.” Joe Deerman is an executive with a large insurance company and goes on to say, “This is why price is the great equalizer. It gives the little guys a chance against the big boys.”
3. Financial Solvency
When you are paying for a service that requires the potential for a lot of financial reserves it is important to know if the company is financially stable. Stability is important because you don’t want to find yourself in a situation where you fell asleep at the wheel and hit ten parked cars and your insurance company is bankrupt.
The way for you to track this is to check with your local Better Business Bureau to get a ranking on the company you are considering. If they have nothing of concern to say you can move on and continue looking for car insurance online.
If the price is the great equalizer with car insurance, service is the rallying cry of the costly car insurance companies. This is true across the board with most companies in most businesses. A company realizes they can’t match prices and they immediately retort, “Well we provide better service.”
The problem with this for car insurance companies is that the only way to really prove this service is when a claim happens. By the time the claim happens, it is too late for you to know if you are with the right car insurance company or not. If you have a claim and are not happy with the service from your car insurance company, it is time to move on.
This one was listed last because it is really a combination of the above-listed reasons. Without licensing and financial solvency, price doesn’t matter. Price doesn’t matter without service, but you don’t get to see the difference in service if you rule out the expensive companies because of price. This is why you need to compare all of your options and go with what you feel is right.
Chances are that you will get a feeling as the process is going on as to which company you feel best about and you need to go with your gut. Don’t rely too heavily on one over the other unless it is because of a price concern.
Time to Buy!
Once you have considered all of the options and completed several quotes it will be time for you to compare car insurance quotes and buy a policy. Your charge is to get multiple quotes and research the companies to make sure that you are making the right choice for your car insurance. Saving money is a good way to start, but you may have had a past experience with a company that raises one of the other factors.
So you have many options on how to get started, visit a multi-comparison site or visit each company’s website individually. Regardless of which way you decide to go the best thing to do is to get started as soon as possible and start eliminating the possibilities. A minimum of five different quotes is suggested to get the best results from your quote search.