3 Tips on Comparing Vehicle Insurance Companies

by | Jan 9, 2017 | Insurance

Comparing Vehicle Insurance Companies is simple, once the customer knows what to look for. Different companies appeal to unique market segments; for instance, some companies cater to families, some are geared toward older drivers and some market themselves to those with poor driving records. Therefore, comparing companies is as important as comparing prices. By doing some research and following these tips, a customer can save hundreds per year on auto insurance.

Research the Insurer’s Consumer Record

To narrow the field among potential auto insurers, it is best to start with the state insurance commissioner’s website. For a rating of a company’s overall performance, including financial ratings and complaint ratios, online resources can offer customers a summary of the best companies. State complaint ratios should be given more weight than finance ratings, and while states have a guaranty fund that will pay claims in the event of an insurer’s insolvency, it is wise to ensure the company’s financial health. When comparing auto insurers, customers should evaluate the price and the level of service before choosing the company offering the best combination of low complaints and low price.

Compare Similar Coverage When Comparing Insurers

The easiest and most effective way to save on auto insurance is to buy only the necessary coverage. If a customer has good health coverage, for instance, they may not need to pay more for PIP. Those with older cars may be able to get by without collision insurance. Most drivers are fine with liability coverage and UIM (uninsured motorist) coverage of $100,000/person and $300,000 per accident. However, the customer should establish a coverage limit before shopping with to make an accurate comparison.

Look for Discounts

Before comparing auto insurance quotes, the customer should learn about potential discounts for things like policy bundling, good grades (for students), a clean driving record and vehicle safety features. Ask each company for other discounts so the rate comparisons are accurate and as low as possible. It may be worthwhile to raise the deductible on comprehensive and collision coverage to lower the monthly premium. However, if the driver does this, they should use the same deductible for all Vehicle Insurance Companies for an accurate quote.

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