How to Compare Auto Insurance Quotes

| September 11, 2009

Auto insurance shoppers are looking to get the most for their premium dollar. The current economy has heightened the need to review prices and select the best quote.

More than looking to see which policy offers the cheapest premium, astute car insurance buyers must look at several factors when comparing auto insurance quotes. While price is important, it’s not the only factor to take into consideration when it comes to insuring a vehicle. Below are a few things to consider:

Auto Insurance Company Financial Standing

First and foremost, it’s important to select an insurance carrier that is financially sound. To do so, shoppers should check the company’s AM Best rating or Moody’s rating. These organizations are two of the most popular financial monitoring companies that track and measure the stability of financial institutions. Before accepting a quote or binding insurance coverage, do a little research or ask the insurance company for their Moody’s or A.M. Best rating.

Insurance Company Accessibility

Determine how easy it is to gain access to the insurance company. With online quotes and web self-servicing, many insurance companies make it easy for web savvy individuals to manage their insurance policies. However, when it comes time to ask a particular question or to resolve an issue that only a real live person can handle, consider how easy or difficult it is to access the right person.

While many people feel comfortable using the Internet, there are some insurance shoppers that prefer to conduct business the old fashioned way, via the telephone or in person. Consumers must find an insurance company that provides the kind of service they are most comfortable with.

Auto Premium Payment Options

It almost goes without saying that most insurance companies offer a payment plan. Find out what type of payment plan and whether or not payments can be made online or via bank transfer. In today’s Internet age, it may seem improbable that an insurance company does not offer online payment capability, but not all do. If online premium payment is important, be sure to find out prior to binding coverage if it is available.

Review the Auto Quote’s Coverages, Limits and Deductibles

The meat and potatoes of the auto insurance policy are the limits, coverages and deductibles. When securing auto insurance quotes, whether from an online or in person insurance agent, make sure to obtain quotes with the same limits, deductibles and similar policy terms, conditions and exclusions. If the coverages vary greatly, make sure to have each insurer modify their quote to include/exclude the different coverages before making a purchasing decision.

Compare Auto Premiums

Lastly, compare the auto insurance premiums. Most insurance shoppers place this as number one and some even use premiums as the sole reason for accepting an insurance company quote. While premium is important, it should not be the sole reason for accepting one auto insurance quote over another.

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Category: Car

About the Author ()

Felicia A. Williams is a wife, mother, freelance writer and owner of Tidbits and Stuff.

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