Checking Auto Insurance Companies to Find the Right One

It's hard to say how many auto insurance companies there are out there. New players come into the market every month as well as mergers and companies dropping out. These constant changes mean it is harder than ever to know which auto insurance companies are the best to deal with and which to avoid. The following should give you some pointers to consider.

History - How long has the company been around?

While longevity is not a real gauge of success, it does show the company has staying power. This may also mean the company has good systems and procedures.

On the other hand a new player in the market is not burdened by past history and may be more responsive and innovative. But in comparison to a more established firm there may be more administrative teething problems.

Check that they are fully registered with the insurance council and any companies office.

Price - it is an important factor

The premiums offered by different auto insurance companies will differ and those differences can be quite large. Companies use different formula to calculate premiums and weight different risk factors differently. A young driver, for example, may find one company much more favourable than another company due to this.

But price should always be evaluated as to what is included in the cover and what is not. Foe example if windscreen replacement is in one policy but not in another but the price is only $5 different the cheapest policy may not automatically always be the best.

Find out what payment options they provide. If you pay your entire annual premium in one go do they offer a discount for example. Can you pay by credit card etc.

Customer Care - what is their reputation

For this you will have to do a little research to find out how their service is rated. Find out which ways you can contact them - email, free calling numbers, etc. Find out any customer service recommendations that have been made about them. Check sources such as consumer reports, online forums, check broker websites. Whatever the results don't forget these only opinions, not facts. However if you see a lot of complaints about a particular company it may be guiding sign.

Is their website informative and easy to use? This may be a signal they place customer service high on their list of values. If they provide helpful information it may be a sign of an overall approach to customer service.

A sensible place for auto insurance companies recommendations is to ask your professional advisors - your accountant or lawyer etc - they often have their finger on the commercial pulse and can make good recommendations based on experience. But even asking friends and family will elicit opinions that can be very valuable in making value judgements.

Auto insurance companies are definitely not created equal but finding the best is not an impossible task. With a little effort to check opinions, price and history, you will be on the way to weeding out the companies to avoid.