How to Find a Reliable Car Insurance Company

If you want to make an informed decision before committing to an auto insurer you will want to ask questions. How will you be treated as a customer? Is the insurance company a good credit risk? Or will claims be paid promptly and in full?

All of these questions should be considered when selecting an insurer, and there are additional steps that you can take to insure that you get a policy with a reliable company.

The first step is to consult the Internet.

Most states have an insurance department website and all states have a Department of Insurance.

Many such websites publish "consumer complaint ratios" for insurance companies that sell policies in that particular state.

A consumer complaint ratio measures how many complaints an insurance company has received for every 1000 claims filed. Experts tend to agree that complaint ratios can be extremely useful in screening prospective insurance companies.

It would be wise to check the websites of professional rating companies that offer comprehensive information to help you assess the credit quality of an insurer, so that you can be confident that your chosen insurance company will be able to pay your claim, if needed.

When assessing how insurance companies handle claims, a reliable evaluation method is to poll the local body shops in your area. Because of their constant contact with insurance adjusters, body shops can provide a clear and very practical assessment of which insurers have the smoothest claim procedures and are the easiest to work with. Such information can help you gauge which insurance companies will help you get a damaged automobile repaired with the least hassle. A body shop will also know which insurers are pushing the repairer to use inferior rebuilt or aftermarket parts versus new original manufacturer’s parts in order to save money.

Finally, you can work with an insurance agent. Until the advent of the Internet, just about everyone used to purchase automobile insurance through an agent. However, these days, companies such as Geico, Progressive and Nationwide now allow you to purchase insurance directly either over the phone or online. Many older and more traditional firms like State Farm and Allstate have maintained their network of agents and will assign you an agent regardless of how you eventually purchase your policy.

Also, when it comes to agents, you should also be aware that insurance agents come in two varieties: captive agents that work exclusively for one company and independent agents or insurance brokers that represent more than one company. Of the two types, independent agents are generally preferable since they can write a policy tailored to your specific needs and they will be aware of the advantages of one insurer over another for your particular situation. Once you know what kind of agent you want, its then best to select an agent that is certified, so you know you are dealing with a reputable and qualified person.

Basically, it really pays to be informed when making decisions about what auto insurance company to use since the quality of your car insurance can have a profound impact on your life in the case of an unforeseen event. Compare car insurance companies and quotes they offer to find the best one. When it comes to insurance, it’s always better to have enough and not need it than to need it and not have enough.