How to Compare Auto Insurance Companies

All insurance companies claim that they are the best on today's market. You will not find a single one out there that says they are the second-best, or that they are plainly average. From a consumer point of view, it could sometimes be tricky to choose the right one for your needs. This article will show you how to compare companies and get the best auto insurance quotes.

1. Decide on the best package for your needs

Before you start to compare insurance carriers, you should nail down the actual insurace package you need. Do you want comprehensive/collision coverage, or just liability? What should be your limits? What is the deductible you can afford to pay, if any? Do you need rental coverage or towing insurance?

If you are confused about the policy you should buy, we would strongly advise you to consult with an insurance agent. In exchange for a commission, a broker will counsel you and make sure that you get enough coverage and also that you don't buy more insurance than you need.

2. Check the J. D. Power rankings

J. D. Power and Associates periodically surveys individual policyholders for their views on their current or previous insurance provider. They can show you statistics on how others rank a company's coverage options, their abilities to settle claims on time, the price versus quality ratio, the satisfaction regarding the customer support and an overall experience.

If, for instance, a company is ranked to be the cheapest, yet they treat their customers like dirt, you may want to settle for one that is a bit pricier but values its customers better.

3. Check the financial strength ratings

Companies like A.M. Best or Standard & Poor's evaluate insurance companies' financial strength, which is a measurement of an insurer's abilities to pay out claims. Such an indicator has nothing to do with how a certain company treats its customers though, and this is why you need to analyze both types of indicators.

Most mainstream insurance carriers have excellent financial ratings, so going with them will be a safe bet. However, it's an absolute must to check this indicator if you are going to go with a less known insurer – even if they have fantastic support, are very cheap and settle claims instantly, this won't be of much help if they are going to go bankrupt in two months.