How to Compare Auto Insurers

The cost of coverage is just one of many factors potential policyholders have to weigh when choosing a car insurance company. Here is a list of qualities you should evaluate when making auto insurance company comparisons.

1. Customer satisfaction. You can evaluate the satisfaction levels of an auto insurer's customers in several ways. First, you could ask current or past policyholders that you know about their impression of the insurer. Additionally, you might consult a customer satisfaction survey company like J.D. Power and Associates. J.D. Power surveys the customers of all major auto insurers ever year to measure their satisfaction levels with the company.
2. Complaints. The complaints that an auto insurer receives are available to the public through your state's insurance department. The website of your state's department of insurance makes auto insurance company comparisons much easier by providing the number of complaints the department received for every 1,000 claims filed with a specific insurer. Obviously, the fewer complaints the department of insurance received, the more likely the insurer will be to treat you well as a policyholder.
3. Financial strength. All auto insurance company comparisons should take the insurer's financial health into consideration. An auto insurer that is struggling financially may not have the ability to pay out your claim if you ever file one. To assess financial strength, look at the insurer's rating in a financial index like Moody's or A.M. Best. The higher the auto insurer's financial rating and forecasted performance, the better.
4. Premiums. Most shoppers focus their comparisons of auto insurance companies on policy premiums. Of course, the insurer you select should be able to offer competitive auto insurance rates. However, avoid selecting the cheapest car insurance company automatically. Insurers who offer bargain-basement rates often cut corners on quality in order to provide rates that low. You're always better off choosing a slightly more expensive policy with a good insurer rather than an dirt-cheap policy with a questionable insurer.
5. Availability. In addition to physical offices in your area, your auto insurer should also have a 24-hour claims number that you can call to initiate the claims process in the event of a loss. The availability of a 24-hour claims line will speed up the claims process tremendously. When performing auto insurance company comparisons, verify that your insurer has an agent and/or a physical office nearby for convenient access.
6. Payment methods. To many customers, the variety and convenience of payment options is also an important criterion when comparing auto insurers. Some insurers require policyholders to pay their premium in full every six months to one year, while others allow their customers to pay on a monthly basis. Moreover, if you would like to pay your bill through auto-pay or online, verify that your potential insurer offers this option.