Understanding how to choose the best auto insurance company not only prepares you for making a wise financial decision, it could also help you save money on your insurance policy premiums. Auto insurance is an essential tool in protecting your finances and – with proper planning – can be affordable in a variety of budgets. The average cost of auto insurance in the United States is $ 1,674 per year for a full coverage policy, based on 2021 data from Quadrant Information Services. Besides the price, it’s just as important to understand how to choose the best supplier for your needs.
How to choose the best auto insurance company
Although almost all states legally require drivers to purchase auto insurance, except in New Hampshire and Virginia, a policy is personal only. Not only are the needs of each individual different, from coverage choices to budget, but insurance companies also have different strengths. When shopping for insurance there are many factors to consider, and the focus on each factor depends on what you need as an individual.
1. Determine your unique needs
To know how to choose the best auto insurance company, you must first determine your unique needs and your financial situation. For example, do you have a teenage driver to add to your policy? If the answer is yes, it may be more important for you to find an insurance provider that offers both full coverage and discounts.
Perhaps you or a member of your immediate family are in the military. Then, it may be more important for you to find a carrier that works with you on a potential deployment or that offers military discounts. Evaluating your personal situation can help narrow down the selection of carriers and help you focus on the one that offers the coverage options you need.
2. Find suppliers in your area
Finding providers in your area can be helpful as some auto insurance companies only write policies in a certain local or regional area. There are potential advantages and disadvantages of using a regional carrier compared to a carrier available in all states. Using a regional carrier often means a more personalized experience from a local agent. However, you may not have all the advanced digital tools, such as a mobile app for managing fonts, as most of the major national operators offer.
National carriers also have advantages to consider. Most offer a wide variety of discounts and font customization options while giving you multiple ways to access customer service. However, not all national carriers have local agents available if you enjoy working one-on-one with a licensed insurance professional.
3. Check the ratings of trusted third parties
Fortunately, drivers don’t have to guess which vendors are backed by strong financial ratings or positive customer service ratings. There are third-party verified reviews available to take the guesswork out. Using third-party data in your research provides a more comprehensive approach to choosing a vendor and gives you unbiased data for your review.
Rankings, such as those from JD Power, provide independent and unbiased reviews of the customer experience with popular auto insurance providers. AM Best is another example of a third-party company that provides more in-depth analysis of an insurance company‘s performance. Specifically, AM Best examines the overall financial health and strength of a carrier.
4. Consider the insurance experience
Another aspect worth highlighting is the overall customer experience and interaction with a carrier. Whether you need to update your policy, submit a claim, or speak to an agent over the phone, the experience can be either easy or more stressful than it should be.
You can rate a carrier’s customer experience based on three categories:
- Accessibility: Take a look at digital tools, including reviews, as well as customer service hours. If you need to submit a claim, create a quote, or make any changes to your policy, think about which method you prefer and how accessible the carrier is based on your preferences.
- Digital management: If managing your policy through a smartphone or online is important to you, take the time to check out the mobile app, online support, and digital proof of insurance options. If this is a priority for you, but it is not offered by a carrier, you may consider another company.
- Complaints: If you ever need to submit a claim, it helps to make sure that the carrier you choose offers you multiple filing options, such as online, over the phone through customer service representatives, or through an app. Additionally, you can examine the financial strength ratings to see the likelihood that your claim will be paid reliably.
5. Compare quotes based on coverage
Fares can vary widely from carrier to carrier based on a variety of reasons, including a carrier’s settings around a driver’s vehicle, driving history, and postcode. Not only does the carrier comparison highlight the difference in fares, it also shows which carriers offer the coverage options and discounts you’re looking for. Be sure to compare quotes based on the same type of policy and the same coverage options so you know you are getting the most accurate representation of costs.
When comparing auto insurance quotes, it helps to know the difference between minimum and full coverage policies, as this impacts cost and coverage. A minimum policy is a policy in which you purchase only minimum liability coverage limits to meet your state‘s legal driving requirements to protect other drivers. A comprehensive coverage policy generally refers to coverage for damage to your vehicle, which involves both collision coverage and full coverage. Other options that may be worth considering include:
- Road assistance
- Rent reimbursement
- Complete window repair
- Gap insurance
Frequently Asked Questions
What is the best auto insurance company?
The most effective method of finding the best auto insurance company is to compare several carriers available in your area. Not only does this help compare rates, but reviewing customer service reviews, financial strength ratings, coverage options, and your needs can help you find the best auto insurance company for you. your situation.
How Much Car Insurance Do I Need?
Almost all states have a minimum legal requirement for you to carry liability insurance, with the exception of New Hampshire and Virginia. In addition to minimums, insurance professionals generally recommend that you purchase the highest amount of coverage you can afford within your budget, which can provide more financial protection.
What’s the best way to save on auto insurance?
Comparing quotes not only helps you choose the best car insurance company, but it also shows you which one has the cheapest rates. Other ways to save on premiums include taking advantage of as many discounts as possible and reducing your annual mileage.