The Consumer Checklist for Choosing The Right Auto Insurance Company

After reading through the different varieties of coverage, the next thing on your list should be picking an insurance company.

You’d think that automotive insurance companies would price their policies competitively in order to get more business, and that monthly premiums would be very similar between companies – but you’d be wrong. The car insurance industry is shrouded in so much secrecy, and because personal circumstances can vary significantly from one driver to another, your monthly premium could vary by $50 or more per month between providers – an overall price difference of $600 or more per year!

For this reason alone, shopping around for the best deal is essential for your financial health. In order to find the best deal near you, click here to compare auto insurance companies in your state.

How Insurance Rates Can Vary Legend: Typical Rates in Florida Typical Rates in Colorado State Farm Allstate Grange Farmers 10 20 30 40 50 60 70 80 90 100 110 120 130 $71 $50 $86 $67 $100 $27 $136 $40

Shop Around, Do Your Research

To get the most out of your automotive insurance policy, you’re going to want to compare quotes from at least 3 different companies in your zip code. That way, you can be sure that you’re getting a good deal. Additionally, monthly premiums are only a part of the equation; if you’re paying a low monthly rate, but your provider doesn’t provide good service in the event that you need to file a claim, then all of that savings might be for nothing. So make sure you get an idea for your insurance company’s service record before you sign anything.

Different Companies Cater to Different Driver Needs

Do you have bad credit? Or a blemished driving record? Are you a young driver? Or maybe you have a DUI on your record and require SR-22 insurance?

Either way, different drivers have different needs. And, sometimes, those needs mean that you don’t qualify for the run-of-the-mill auto insurance policy which most companies offer. However, there are providers out there which cater to drivers with specific needs. Make sure you shop around in your area to find one of these specialty providers if any of the above scenarios apply to you.

Check the Company’s Finances

Lastly, it’s a good idea to take a look at the insurance company’s finances. Make sure that they are solvent, and able to pay their claims. Generally, this information is readily available from various rating agencies. The following are a few:

  • Fitch, Inc: 800-893-4824
  • Moody’s: 212-553-0377
  • Standard & Poor’s: 212-438-2400