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Comparing Best Rated Auto Insurance Companies?

Anyone who is dissatisfied with the way they have been treated by their current car insurance company should never hesitate to search for a new one. Other reasons to find a new insurer is if what they are paying doesn’t match up to what other local residents are paying when their policies are pretty similar, or when a person is moving to a new state. Conducting an analysis of the local auto insurance providers is the best way to know which company is going to offer the best experience, in addition to price.

Not everyone focuses on only getting the best or lowest price in town. To some drivers, getting a policy from the best insurer is what matters, even more than saving a few dollars to go with another company with a lower price. The need to have a great insurer stems from people either having a bad experience in the past or hearing of someone who had a bad experience. There also could be other reasons, such as the need to have a very financially sound company or finding someone who will work with the policyholder one on one. We’ve listed a few reasons why people will pass over a lower price for a company that seems to be better or of a higher quality.

Get a list of local insurers by using our quote comparison tool. This helps in two ways; one, it locates the local insurers willing to provide insurance, and two, it shows the prices they are offering side by side so price is no longer a question or issue. Take the companies that are listed with the quotes (and any others that are popular but aren’t found on the list) and start comparing those.

Financial Strength
In the last few years, consumers have watched a number of banks, including the big guys, go under because they weren’t managing their money correctly. The same type of thing can happen to an auto insurance company. If their financials aren’t strong, they’re not going to be around very long and the paying policyholders will be left high and dry without insurance coverage or anyone to pay for claims for damages. Checking the financial strength of a company will help prevent any surprise bankruptcies or other failings.

Companies, such as insurance agencies, should have their finances available for public view, especially when they are a publicly traded company. One easy way to check on a company’s financial stability is by looking at a third-party evaluator, such as A.M. Best. They review companies and determine their financial abilities from an unbiased and outside point of view. Included in their long list of findings are the results of car insurance companies and their financial status. A.M. Best uses a ranking system for each company they evaluate. Their rating system uses letters similar to grade school markings, and they range from A++ (superior) on down through D (poor). These letters indicate the ability they have to meet their responsibility to policyholders and consumers should aim for a company with no lower than a B+ rating, as emphasized by experts. Sticking with a company that is found to be secure with their finances will make sure all finances will run smoothly when a policyholder needs to file a claim.

Review Coverage Terms
It’s possible for Company A to provide the same type of coverage as Company B, but the fine print may be slightly different. For example, Company A may only provide coverage for when the damage is not weather related and Company B may cover damage no matter what the culprit was. Company C may provide a wider variety of coverage options or amounts compared to Company A, even though Company A’s prices are lower. It sounds confusing, but it’s helpful to know all of the little details when comparing companies. It’s usually the details that make a company great.

Talk To Everyone
Find out about an insurer by talking to people who have car insurance. Inquire about the company used, satisfaction levels of filing a claim and how the customer service representatives are. Do they think their premium charge is fair? How long is their policy period? How strict is the company about paying before the due date? Is the company an overall good company to use? Trusted family and friends will be the people to take the most interest in, but other people’s experiences can add in as well to support findings. Another person to talk to is the customer service agent of the local body shop. They will know which insurance companies are easy to deal with and who gives the best coverage with the least amount of hassle. Body shops are always repairing accident damages and dealing with insurance companies to get payment.

To get a better idea of an insurer’s customer service habits, anyone can check JD Power’s website and look at their ratings. They work similarly to AM Best mentioned earlier. JD Power evaluates insurers (and other industries) on their ability to provide a positive experience for their customers. They evaluate areas such as bill pay and overall customer service. While asking a few people and forming an opinion, this third-party company takes hundreds of opinions and puts them together for final findings, which can be thought of as pretty accurate.

One more place to check out a provider is to go the local State Department of Insurance. They have listings of which insurer is up to par and which one should be avoided. People are allowed to file complaints with some state’s Department of Insurance, and by checking with them first a common problem experienced by other policyholders can be avoided.

Each company will have their pros and cons, and many of them will be similar. It’s when there are many similar findings between companies that consumers should take a closer look into who the company really is and what they really offer. As mentioned earlier, it’s the details that typically count the most when looking for the best rated auto insurance company. And, it’s okay for policyholders to be picky about what they want in an insurance policy. There are enough companies out there who want business that they can be pretty flexible at times