We all love a good bargain. Whether we’re shopping for a car, a pair of shoes, or even a simple bar of soap at the drugstore, like moths to a flame we gravitate toward brands offering the better deal, no matter how minuscule.
A surprising number of people however don’t apply the same scrutiny to their choice of an auto insurance provider. Rather than shopping around and finding the best arrangement, they go with a name they are familiar with or the insurance provider who happens to have an office in their neighborhood. But by doing so, they stand to lose a lot money, money that would be better put toward reducing credit card debt or covering monthly expenses.
Still, we don’t want to get caught with an untrustworthy insurance provider with a shady plan. Here’s what to consider:
Customer Satisfaction
The most important factor in choosing an insurance provider is reliability. In the event of an accident, the last thing you want to deal with is a provider who drags their feet when settling an insurance claim. This is especially true in the event you’re waiting on claim money to get a rental to get you to and from work.
The caliber of an insurance provider is reflected in the level of satisfaction of their clients. A competent and effective insurance provider will logically have happy customers. How can you tell whether people are content with a provider? Take a look at complaint ratios (total complaints versus settled complaints). A high ratio is a serious red flag.
Online reviews by both amateur and professionals are great resources for giving an insurance provider a thorough background check, too. Don’t underestimate the weight of consumer complaints by social media!
A Second (or third) Opinion
Find an accredited body shop that is in your neighborhood and pay them a visit. The owners and workers there should be able to give you a solid opinion of the insurance company that will provide you with further insight into their quality. Remember: they work with insurance companies just as much as you will. If a provider is slow to release a vehicle that means slower service for you.
Options, Options, Options
Variety is the spice of life and auto insurance is no exception. The more choices offered by a particular provider the more likely you are to find a plan that suits your needs.
Costs
When it comes down to it, cost is often the deciding factor when selecting an auto insurance company. You may identify a reliable insurance provider with a pristine record and excellent customer satisfaction but it does you no good if you can’t afford their premiums.
Tools for Comparing Rates
There are a number of online auto insurance rate comparison tools that can be extremely helpful in saving on car insurance. These tools allow you to input your zip code and immediately get insurance plan quotes from a variety of providers in your area. This saves you the hassle of calling or visiting multiple insurance companies to get quotes. Instead, you can compare rates from the comfort of your living room. It’s a one stop shop for insurance rates. And the best part? You can get quotes for free.
Factors that Influence Rates
Many people fail to realize that there are factors outside of the insurance provider that affect rates. These include:
New Car
A new car is generally going to be more costly to replace and repair in the event of an accident, which means a shiny new ride will cause your rates to spike.
Long Commute
A longer drive to work equals more wear and tear on your vehicle and a higher likelihood of an accident.
Geographic Location
Auto insurance rates are largely determined by your zip code. New Mexico, New Jersey, New York, Oklahoma, and Florida currently have higher premiums than other states.
Age
If you’re under 26 and male, you can expect higher than average rates. Unfortunately, this is due to the frequency and severity of accidents among this particular demographic.
Marital Status
You are automatically placed in a higher risk category if you are unmarried and have no children.
Lapsed Coverage
If you’ve been lax and let your insurance lapse for more than 30 days, you’ll see higher rates as a result. Insurance providers like to see drivers with consistent coverage. Don’t forget: insurance coverage doubles as a record of your driving prowess.
Auto Incidents
This one’s a given: any auto accident or traffic violation, whether of your fault or another driver’s, will raise your premiums.
To avoid an excessively high insurance premium, shop around for the best deals and keep in mind factors that will influence your rates.
The post Choosing an Auto Insurance Company appeared first on LERA Blog.