Comparing auto insurance companies is an important part of financial planning. Nobody likes paying too much for auto insurance. Without a quality auto insurance comparison you could be paying hundreds of dollars more than is necessary each year. Cheap car insurance quotes are no guarantee that you are getting the best deal, as the coverage available from different companies may not be the same. Unless you compare terms of coverage as well as premiums when comparing auto insurance companies, you might find yourself high and dry when the time comes to make a claim.
Steps in Comparing Auto Insurance Companies
Today with the advent of many more local brokers, and the Internet, comparing auto insurance companies is much easier. A proper comparison of car insurance policies will ensure that you are getting the best deal possible from your car insurance quotes. The best time for auto insurance company comparisons are when your existing policy is coming up for renewal, when you relocate to another state or when you buy a new car. When comparing you should:
- Compare Policy Costs: Obviously the lower the car insurance policy costs, the better, but be sure to compare apples with apples. Very low premiums could mean much more expense later when a claim arises if the policy doesn’t offer sufficient coverage or doesn’t pay claims reliably.
- Compare Coverage Available: When getting car insurance quotes, set the coverage limits and the deductibles at levels you can live with and only compare those quotes that contain a minimum of desired coverage.
- Compare Claim Procedures: Some companies offer very low quotes simply because they have little or no customer service. When the time comes to make a claim, any savings on premiums could be spent trying to rectify the problems caused by the company.
- Compare Discounts Offered: No two people have exactly the same driving history or risk factors, so you should compare companies that play to your strengths. Some car insurance companies offer discounts for a safe driving history, while others offer savings if you are a member of certain professional organizations or have defensive driving training.
- Compare Auto Insurance Companies: It is very important to compare the companies as well as the policies. You want your company to be still around when the time comes to claim. Check their credit ratings with agencies such as Moody’s and Standard & Poor’s.
Comparing Auto Insurance Companies
When comparing car insurance quotes, you should choose a minimum of three local brokers or go online to three insurance or brokers websites. Most brokers have auto insurance comparison tools available either in their offices or online. By checking at least three companies, you have a better chance of getting the best auto insurance rates.
When comparing auto insurance companies, make sure you do so well before your current policy expires. That way, you’ll have plenty of time to make auto insurance company comparisons. You’ll also be able to explore each company fully, dig for discounts and have plenty of time to ask questions of insurance agents that you can’t ask online.