How to Select the Right Auto Insurance Company

Selecting the right insurance for you depends on a number of factors. Before you know what company to choose, figure out what kind of insurance you need. Consider your car, its drivers, and the financial impact of an accident. Make a list of 5-10 auto insurance companies that have good reputations, and calculate the most comprehensive and affordable deal for you. Make sure to check for possible discounts!

Method 1

Method 1 of 3:

Finding Reliable Companies

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Compare reliability. The company you choose should have a good reputation for settling claims. Read online to assess the reputation of each company. Check out the time taken by the company to process the claims and pay them off. You can also check your state insurance department's website to find out about the company you are interested in.
- Contact local body shops and ask what insurers they recommend. Workers in body shops witness customers dealing with insurance companies all the time, and know which ones are the most reliable.^{[1]XResearch source}
When checking for an auto insurance company, pay attention to its complaint ratio. Check your state's Department of Insurance website, where the customer complaint ratio of each company is listed.^{[2]XResearch source} This shows the number of complaints received by the company versus the number of complaints settled by them. Higher ratios mean an unreliable company.
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Gage the level of customer service available by meeting with or calling customer service representatives. Check to see that they are friendly, prompt, and informed. Ask the hard questions, and make sure they are able to answer you. If a company is slow to answer and if the representatives don't answer your questions, move on.
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Method 2

Method 2 of 3:

Calculating Costs

When you look for auto insurance, you should compare the rates and reliability of at least 5 different companies. If you don't compare, you could end up paying almost twice as much to insure your vehicle. Once you have determined the companies that seem most stable, get quotes from them all to see what you can best afford.
Start by checking the basic car insurance price quoted by the company's website. This number can change dramatically as other costs are considered, so don't stop here.
Check to see how much liability coverage each insurance company is offering in relation to the overall cost of insurance premiums per year. This amount can vary quite a lot between policies. Add this number to your basic rate.
Paying the lowest deductible may be tempting, but it might land you with a lot of expenses if you get in an accident. If you get in an accident, you will have to pay the amount of the deductible before your company pays anything.
If you are involved in an accident, some companies will raise your rates significantly. Call a representative and ask what effects an accident, or multiple accidents, would have on your insurance. Eliminate companies that raise rates unreasonable after an accident.
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Method 3

Method 3 of 3:

Finding the Best Deal and Fit

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See what type of insurance policies are offered by the company. If you know what kind of policy you want, check to see if an auto insurance company provides that policy or not. Read up on which claims are entertained by the company. You might decide you don't need collision coverage because your car is old and would be cheap to replace, but you do need personal injury insurance because you can't afford to take time off work.
- Check what insurance is required by your state. Not all states require liability insurance, for instance.
- If you have an unusual car, such as a historic vehicle, look up companies that will offer you a policy specific to your needs.
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Check your available connections for resources. Consider combining your insurance. If you have home insurance, call the company that provides it and ask if you are eligible for a discount if you get your car insurance from them.^{[3]XResearch source} If you work for any sort of company, check with them to see if they have a connection to an insurance company, and can get you a better rate.
- If you already have car insurance, and you have a good record with them, call them and ask for a renewal discount. This can significantly lower your premium, and save you the hassle of changing companies.
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Check each company for discounts. Companies lower your rates based on occupation, driving history, gender, age, and other factors. Ask each company what discounts are available for you. Check for student discounts, military discounts, low-risk occupation discounts. Ask for safe driver discounts if you have not been involved in an accident for at least a year.
- Some insurance companies offer discounts for student drivers with high GPAs.
- Do you belong to AAA or another auto safety club? That might qualify you for a discount.
- The features of your car might lower your rates. If you have antilock brakes, automatic seatbelts, or airbags, check to see if this can lower your premium.
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