With the large number of auto insurance companies out there, it can become an extensive process to search through the top rated auto insurance companies and find out which one fits your requirements of both coverage and cost. Between the different policies available and the prices you can pay for them, both national and local companies are competing for your business and claim to have the best services around. Conducting proper research and gathering a lot of information on each company before you commit to using an auto insurance company is the smartest way to go about your purchase. You need a guarantee the company will be around to pay for any future claims you make while providing you with excellent customer service.
As unpleasant as it may be to imagine yourself in the middle of an accident, it’s necessary to figure out what expectations you would have of your auto insurance company in this situation. When you are in this experience, you will not have much of a choice regarding what your insurer provides, so it’s best to know beforehand. Knowing what coverage you have access to will alleviate the stress of the situation instead of wondering what’s going to happen. If you’ve been in an accident and have dealt with your insurer, you should already know your expectations and if they were met. A negative experience is sufficient enough to look for a better insurer and switch.
Make and review the list of needs you feel should be met by an insurance company during your comparison. On this list should be at least two things; customer reviews and ability to pay out a claim. If you are curious to know how your current insurer performs in these areas or if you want to know about another insurance company, you are encouraged to read through online reviews auto insurers conducted by third-party companies. Approaching these reviews in this manner instead of contacting the companies directly will give you a more honest opinion instead of a biased view from the company.
Auto insurance company ratings are available online for your convenience. Customer service ratings are gathered from anonymous surveys and show the consumer what other previous and current customers have experienced throughout their time with the insurer. J.D. Power (jdpower.com) gives a list of ratings pertaining to the overall experience, policy offerings, pricing, billing and payment, and contacting the insurer. They rank each section by using up to five stars. The more stars representing the company, the higher the satisfaction experienced by the majority of customers. This is one way to predict your experience with the company as a customer.
Another way to know an auto insurance company’s standing is by looking at their financial stability. The strength of an auto insurer’s financial stability measures the company’s ability to pay any claims you or any other customer may make. It would be terrible if you were in a position requiring a claim to be paid and the company you’ve been paying cannot provide a payment in return. Some references to check for a company’s financial stability include A.M. Best (ambest.com), Standard & Poor’s (standardandpoors.com), Weiss Ratings (weissratings.com), and the BBB (bbb.org). This research will again make it easier for you to choose an insurer without too much worry about their ability to pay out if necessary.
A.M. Best (ambest.com) provides “a constructive and objective role in the insurance industry toward the prevention and detection of insurer insolvency.” They provide a third-party evaluation that gives consumers better peace of mind as they shop for auto insurance. A.M. Best’s financial strength ratings are placed in one of two categories; Secure and Vulnerable. The companies deemed Secure are those who receive a rating of A++ to B+. Vulnerable companies are rated as a B through S (rating suspended). You can check out their site for a more thorough explanation of their rating system, although it is fairly simple to follow and choose which companies are deemed best according to this site.
Standard and Poor’s (www.standardandpoors.com) “has been assessing the financial strength of insurance companies since 1971 and is among the world’s largest insurance rating organizations.” They have reports on over 3,000 insurance companies worldwide and offer this information to you free of charge on their Web site. They take into account the creditworthiness of each insurance company. Their ratings range from the best markings of AAA and go down from there. You can read their explanation on their site for more information on how they evaluate an insurance company.
Every quarter, Weiss Ratings (weissratings.com) “tracks the financial safety of approximately 2,400 U.S. property and casualty insurance companies.” They explicitly state they do not accept funds from the insurance companies, thus making their rankings more unbiased than a company who would receive compensation for giving an insurance company higher rankings. Weiss Ratings use a simple system of A through E, much like a school report card, ranking companies from “Excellent” to “Very Weak.”
You can also check the Better Business Bureau (BBB). Each state has a division of the BBB and keep the claims filed against companies that render poor service to their customers. These files are made public by accessing them online or by calling for consumers to check as they compare companies one to another. Once you go to bbb.org and enter your local zip code, you can search by company name to see if they have been registered with the BBB and if they are an accredited business with the BBB. You can view their report of any negative claims against the company here as well. Much like the other resources mentioned, this method can help you avoid local companies who are not as reliable as you had hoped.
Although not accessible in every state, most states’ Department of Insurance keeps a file of complaints against insurance companies within the state. Anyone who has had a negative experience with an insurance company and has reported it is listed within the department. You can check your Department of Insurance by calling or viewing their Web site. If you can’t find the Web site, you can do a search such as “Texas Department of Insurance Complaints” to find it, but make sure you use your home state name instead. This could help you avoid a common problem with a local auto insurance company.
One final suggestion is to talk to trusted people you know about their auto insurance company. Ask questions about both positive and negative experiences they’ve had regarding the time it took to receive payment for a claim filed, customer service experiences, how problems have been handled, and if they would recommend their insurer. Getting these answers from different people will assist you in forming an educated opinion about your choices.
Where there are so many auto insurance companies to choose from, it would be in your best interest to pick from the best rated auto insurance companies. This will take time on your part, but it will be well worth it when you know you’re getting your coverage for the best price with the top company.
Once you’ve narrowed down your list, we at onlineautoinsurance.com can provide you with no obligation quotes from reputable insurers. All you need to do is give us a little information — not including your driver’s license or social security number — and we’ll send you at least 5 quotes for auto insurance policies. If you’ve already received your quotes, you can analyze those companies before you choose to purchase a policy here at onlineautoinsurance.com.
