The Fastest Way to Compare Auto Insurance Companies

Finding an auto insurance company to fulfill your auto insurance needs is not always the easiest thing to do. There are so many providers out there that it’s hard to know with which one to go. Comparing auto insurance companies is an important step, and there are a few quick and easy ways to compare those auto insurance providers.

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Comparing auto insurance companies can tell you many things. First, you can see which provider offers the lowest rates. After that, you can compare auto insurance companies to see which has the strongest financial future and the best customer service track record. Both of these factors are important when considering which car insurance company to use.

The First Step

The first step in comparing auto insurance providers is to get a list of providers in your area who are willing to sell you insurance.

The fastest way to do this is to utilize quote comparison websites.

A quote comparison website takes your pertinent information and sends it to car insurance providers in your area. Those providers then crunch the numbers to create a quote for your particular driving record and vehicle. Then they send you the quote to you through e-mail or over the phone.

In this way, you receive multiple quotes from insurance providers with very little effort. Certainly there are other ways to get quotes from providers, but none are as quick as using quote comparison websites.

The quotes you receive from car insurance providers allow you to understand the range of prices available to you. You may be tempted at this point to just go with the cheapest provider, but the cheapest auto insurance company is not always the best. Auto insurance is meant to protect you, and you don’t want cheap protection.

Also, don’t discount those auto insurance companies that may have quotes in a more expensive price range. You may find these companies have a very good reason for charging more for the services they provide.

Check for Fraud

The next step in your search for auto insurance is to weed out any fraudulent car insurance companies from your list. Unfortunately, insurance fraud is big business to those masquerading as insurance companies or insurance agents.

The last thing you want is to find out that your car insurance provider is actually a scam.

Every car insurance provider and insurance agent must be licensed with your state to do business. You can research the background and licensing information for any insurance company with your state’s Department of Insurance website.

If you suspect that an insurance company or agent is acting in a fraudulent manner, you can also report them using your state’s Department of Insurance website. The cost of fraud is passed on to every honest consumer out there, so helping to stop fraud benefits everyone in the long run.

Compare Financial Ratings

After you have weeded out those auto insurance companies that are fraudulent, you need to compare the short list of providers who sent you price quotes. The next step in comparing those companies is to utilize financial ratings.

Financial ratings are conducted by companies that have been designated to do so by the U.S. Securities and Exchange Commission. Many of these ratings companies have been around for a long time, and they are utilized by many in the business world.

Financial ratings basically assess the monetary strength and stability of businesses such as car insurance providers. Financial ratings are important because so many people rely on companies like car insurance providers in the events of emergencies and catastrophes.

Consumers need to be assured that auto insurance providers can live up to their financial obligations.

Currently, there are ten ratings organization approved by the U.S. Securities and Exchange Commission to provide financial ratings for businesses such as auto insurance providers. Common ratings organizations include Standard & Poor’s, Moody’s, and Fitch Ratings. Most ratings organization utilize alphabetic rating systems, with A, A+, or AAA being the top ratings.

When comparing auto insurance companies, you want to only consider those that have a strong financial rating. Those auto insurance providers with ratings below a B rating are really not financially stable enough to ensure that they can pay your legitimate claim in any economic or catastrophic situation.

Compare Customer Satisfaction Ratings

After you have narrowed down your list using financial ratings, you can compare the remaining auto insurance companies using customer satisfaction ratings. Customer satisfaction ratings reveal how well an auto insurance provider treats its customers.

Strong ratings mean that you will have help and support throughout the buying process and the claims process. Low customer service ratings mean that you might be met with stalling tactics, rude agents, and a hassle that you just don’t deserve.

One resource for comparing car insurance providers utilizing satisfaction ratings is the website of J.D. Power and Associates. J.D. Power and Associates has been rating companies like auto insurance providers for decades, based on feedback from actual customer surveys.

Customer service ratings that are based on actual customer experiences are vastly important.

The law of averages ensures that a handful of dissatisfied customers will not bring down the ratings of a great car insurance company.

However, a high amount of unhappy customers will show up as low ratings.

It is important when comparing auto insurance companies to only choose those that have the highest ratings. You are doing yourself a great disservice when you give your money to a car insurance company that doesn’t really value you as a customer. In the end, you are the one who will pay for that decision.

Why Comparing Companies Is Important

Comparing auto insurance companies is important because, in this day and age, knowledge is power. Your knowledge gives you the power to choose the best insurance provider possible. Auto insurance is meant to protect you, and you only have the best protection if you have the best auto insurance provider.

No one rating is more important than the other. Your goal is to have fair-to-excellent ratings in all areas. A car insurance provider with the best customer service won’t be around for very long if it has a poor financial outlook. Similarly, the car insurance company with the strongest financial footing isn’t worth its salt if its agents are rude, sloppy, or just don’t value you as a customer.

It is important to go through the steps to compare providers in the appropriate order. In this way you are assured that you compared auto insurance companies using cost, financial strength, and the reputation of the company. Comparing auto insurance companies allows you to get the best rates from the best company, which is a win-win situation.

An example of the value of comparing auto insurance companies can be found in a 2012 study conducted by the Consumer Federation of America, or CFA. The study was essentially aimed at comparing auto insurance rates. In the study, the CFA received quotes from major car insurance providers based on the same driver demographics. The driver demographics were the same in terms of gender, age, driving record, and region of the country.

The study found price ranges in one city to be from $762 to $3,390. These quotes came from major car insurance providers, so there are no discrepancies in costs based on small insurance providers looking for customers.

In this case, comparing auto insurance providers would result in over $2,000 in savings!

Knowing Your Options

They say there are few sure things in this life and, unfortunately, ratings do not always guarantee a happy auto insurance experience. Regrettably, you could compare car insurance companies until you are blue in the face, but you could still be dissatisfied at the end of the day. The financial nature of the auto insurance business almost ensures disagreements between customer and their insurance provider.

However, the ball is luckily in your court in this instance. If you find that you are dissatisfied with your auto insurance provider, you have many different options. First, you can report your complaint to your state’s Department of Insurance, Consumer Affairs Department, or Attorney General’s Office, if you feel that you were treated in an unethical manner.

Next, you can utilize consumer complaints resources, such as the Better Business Bureau. The Better Business Bureau will research and validate your complaint, and then contact the insurance provider on your behalf. They will also work as a mediator so that you and your car insurance provider can come to an agreement.

Lastly, you have the option of exercising the almighty dollar. If you dislike your auto insurance company, you are always able to decide to give your money to a different provider. If that is the case, go straight to a quote comparison website to start your search for a new auto insurance provider.

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