What To Look For In A Car Insurance Company

Car insurance can be very confusing even for those who have been buying it for years. The situation is made worse by advertising, which tells us how wonderful a particular insurance company may be, so what should the average person look for in a car insurance company?

These are just a few of the characteristics of a really good insurance company. You should check for them before you get agree to a policy. Remember insurance from a company with poor customer service and lousy policies is no bargain at all.



Good insurance companies should provide at least a majority of these attributes:

• A high rating with at least one of the big ratings firms. A.M. Best is considered the top rating agency for the industry. It rates companies for strength, credit worthiness and other factors. An insurance company should have an A++, A+, A or A- rating from A.M. Best. Anything below that marks trouble. The rating should be displayed on the insurance company’s website. Insurers that get a good rating usually say so prominently on their website. If you don’t see a rating posted get suspicious.

• There should be a lot of information available about the insurer online. The company should post a lot of information about itself on its website. There should be plenty of other info such as consumer reviews available as well.

• There should be few consumer complaints online. Type the company’s name and the words “consumer complaints” into a search engine. If you see a lot of complaints it would be a good idea to look elsewhere.

• The insurance prices the company advertises and puts in quotes should be realistic. If quotes are 25% to 50% below other insurers be suspicious. Some companies will use false or unrealistic quotes to lure you in and then sock it to you later with additional charges.

• The insurer is willing to quickly provide you with a quote and to send you a paper copy of the quote. If the company isn’t willing to provide you with a copy of the quote stay away.

• The insurer should offer discounts. Legitimate insurance companies offer discounts for good drivers, students, married people and many others. Ask for a list of discounts when you ask for a quote.

• The insurer should offer fairly constant prices and deals. If quotes or prices constantly change stay away. If quotes vary widely from week to week or month to month there’s something wrong.

• The company should offer policies that meet the legal requirements in your state. Car insurance requirements vary widely from state to state as do insurance prices. The company should tailor its products to meet the needs of people in your state.

• It should be easy to contact the company either online or by telephone.

• The company’s agents or representatives should answer all of your questions honestly and in a timely fashion. Obviously nobody wants to do business with an insurance company that doesn’t answer its phone or respond to emails.