Car Insurance Reviews: 10 Tips for Reviewing a Car Insurance Company

After people have received several car insurance quotes, they will need to review the companies that give them the best rates because purchasing car insurance is not just about price. A car insurance company may give someone a good price, but not give their clients flexible payment options, for example.

Before people decide to purchase car insurance from the first company that gives them a cheap quote, they will have to take time to research the company’s options to ensure that they are receiving the best car insurance deal. Taking the time to read car reviews and compare car insurance can save people a lot of money!

Buy new car

1. Find out How Much Coverage Is Being Offered

The amount of coverage people can purchase can mean the difference between being very satisfied with the car insurance company’s options and not being happy at all with the coverage. This would be one of the first things that people would need to look into after the price; if the car insurance company has a great price but does not have the coverage the policy holder needs, the policy these people could purchase from this company wouldn’t be worth it.

All car insurance companies must sell bodily injury liability or Personal Injury Protection (PIP) insurance and property damage liability, so people only need to concern themselves with the optional coverages that an insurance company offers. The most common types of optional coverage are:

  • Uninsured Motorist
  • Underinsured Motorist
  • Collision
  • Comprehensive
  • Rental Reimbursement
  • Roadside Assistance

If a car insurance company does not have the capability to offer at least these optional types of coverage listed above, the policy holder who needs any of these types of coverage will be at a disadvantage.

2. Review the Price

car insurance costsIs the price that people are being quoted a fair one based on the amount of coverage they receive for their new or used car? A complaint of some car insurance clients is that they paid a low price, but they did not receive the customer care that they expected or payment for the repairs they needed.

These particular car insurance companies are avoiding paying their clients’ claims, and that is the reason that they offer insurance for such low prices; they are saving a lot of money by not paying for the repairs that are needed. That’s why consumers must ask why an insurance company can charge rates so much lower than everyone else.

3. What Discounts Are Available?

Car insurance companies are offering a multitude of reasons that people can qualify for discounts. Discounts are definitely an area where policy holders need to check before they decide on a car insurance company. So many insurance companies have discounts, if someone runs into a company that doesn’t have very many, they will have to take the opportunity to find a car insurance company that does have several discounts elsewhere. Drivers should also look for the safest cars since most companies will reward you for a safe car!

People should be able to easily find typical discounts offered such as:

  • Good Driver
  • Good Student
  • Multi-Car
  • Multi-Policy
  • Anti-Theft Device
  • Low Mileage
  • Safety Features

car insurance claim

4. How Easy Is It To File a Claim?

Car insurance companies that make it easy for people to file a claim in the event that they have an accident are much more popular with their clients than those that do not give different options. For example, some people may wish to be able to simply call their insurance companies on the phone after they have had a car collision; another client may prefer to begin a claim online. If each person has a preference, they need to make sure that the car insurance company can accommodate it.

Some car insurance companies do not have 24 hour, seven day a week claims processing. This would delay the start of their claims if they were to have a car collision on the weekend or at night. Some people may prefer to be able to start a claim right away no matter what day it is or the time, so they may need to seek the car insurance company that can give them this convenience. When looking for a car, drivers should take the time to not only compare car insurance companies but also compare car classifieds to find the best price!

5. How Satisfied Are the Customers?

satisfied car insurancePart of the reason people have car insurance is to be able to have their vehicles repaired quickly. Policy holders experience problems with their car insurance companies when they begin a claim and their companies do not follow up quickly; they do not receive payments in a timely manner.

Policy holders have an outlet for their grievances through filing a complaint with the Better Business Bureau, for example. Before purchasing a policy from a company, people can review what the company’s current clients have to say about them to have a clear view of the company’s practices.

6. What Is the Financial Strength of the Company?

If a car insurance company does not have the financial stability to pay all legitimate claims that are presented to them, the insurance isn’t worth purchasing. It’s very important for people to check on the financial strength of a car insurance company before considering purchasing the insurance. There are some great car forums that really allow drivers to share experiences. Forums are a great place to find out what companies are legit.

A.M. Best is a credit rating agency that specialized in rating insurance companies, and those companies that receive a Superior, Excellent or Good rating from it are secure financially.

7. Contacting a Representative at the Company

Before they purchase insurance, a good way to determine how attentive the company’s representatives will be is to call the company’s telephone numbers. They will need to see if a person answers the phone rather than an answering machine. If a machine does answer, these consumers can make a note of how long it takes for someone to return the call.

Some insurance companies offer people a chance to have a live chat online or to have someone contact them through email. Consumers can test these avenues of communication just like they can ask car questions on their new car. If they do not receive prompt responses, they may need to look for another company to review.

car insurance bills

8. How Flexible Are the Billing Options?

Some people will need to pay their insurance premiums by the month because this is the more affordable option for them. Others would prefer to pay their premiums in full at the beginning of the policy period to obtain the discount. Some would like to pay their bills online, and others like to mail in a check.

People may look into this area before they purchase their insurance, also. If they are in the group that needs to mail in a check, they will need to make sure that the car insurance company offers this option.

9. Is the Staff Friendly?

If the staff isn’t helpful and friendly, this can be enough of a reason to cause people to want to switch car insurance companies.

Unfriendly staff is a very common reason that clients give negative reviews to customer satisfaction websites such as J.D. Power and Associates.

Consumers can consult the J.D. Power and Associates website to look up the car insurance company they are considering. If they find that their ratings are low under the “Contacting the Insurer” category, they may want to reconsider this particular company.

10. Location

Some car insurance companies are located right in the policy holders’ backyards, and they prefer this to be the case. If policy holders need to be able to go to the insurance agency whenever they feel they need to, they will need to make sure that this is possible before they purchase the insurance.

location of car insuranceLarge national car insurance companies sell insurance policies all over the country, but they do not necessarily have an office in every town. If it’s important to have the company nearby, potential policy holders can ask each company that gives them a quote if they are located near them.

Finding a car insurance policy means that people will need to take the time to find out if the insurance company has everything they need. If the policy has a very good price but does not have the Roadside Assistance coverage they need, the policy isn’t worth the price. If the company has a low price but is in the habit of denying or refusing to pay claims, the insurance isn’t worth purchasing. When people ask these questions and seek the answers before they buy a new car and a new car insurance company, they will find a company that suits their needs and fulfills its obligations.

5 Responses to “Car Insurance Reviews: 10 Tips for Reviewing a Car Insurance Company”

  • Shamsheer Says:

    March 27th, 2012 at 8:48 pm

    Auto means that a policy is twtiren on a car not the person. You can be added as a driver to the cars, but you would be covered as a family member either way. Check with your local agent since a few states (TX, NY, etc) have different rules, but even then you would still be covered unless you took it without permission AND they reported it stolen AND pressed charges.

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