Tuesday, August 20, 2019 | Updated at 2:32 PM ET


How to Find the Right Auto Insurance Company

First Posted: Jul 18, 2019 03:04 PM EDT

Finding the right auto insurance is quite tiresome. Signing for the first company you see or going to the cheapest one isn't exactly the right choice. The whole point of insurance is to get help at the time of need. You can't expect that from a bad insurance company.

They would care more about earning than providing service. Some may come up with excuses to reject your claim. You have to find a lawyer in such cases to get your due right. To save yourself from all that trouble, select the 'right' auto insurance company.

Visit the Insurance Department Website

Every state has different insurance laws hence its own insurance department. Visiting the insurance department website of your State will provide you with insights needed to make an informed decision. It will have all information including the complaint filings and licensing information of every insurance company in the state. In some states, companies have to take the permission of the department before raising their rates. You will know whether the company is licensed or scamming you, how many complaints they have against them, and how many times they have been granted or rejected permission to increase their rates. 

Compare Different Deals

Not all companies have the same rates and packages. Some might be too cheap to believe and some may be too expensive for you. Cheapest may have other drawbacks, and the most expensive may be charging too much just because they have become a big name. Either way, compare the deals of different auto insurance companies to make sure the agreement covers everything you need and doesn't charge too much. You should also ensure there are no hidden charges or costs. For example, some companies may pay only for duplicate spare parts instead of Original Equipment Manufacturers (OEM) parts of the vehicle. You can visit the website of Cheap Auto Insurance to see which car insurance you need and its rate in your State. 

Check their Financial Ratings

Standard & Poor'sand A.M. Bestare two of the most reputable organizations that provide financial ratings of insurance companies. You might be wondering why you need to see their finances; it's not like you are investing in it. The truth is, it's like an investment for which you are returned at the time of need. Now, would you like to invest in a company that can't pay you back? Most probably not. With the help of financial ratings, you can tell whether a firm has enough resources to pay all the insurers. The company is insecure if it's overextending itself. It also goes to show they care more about money than their service. Such firms might do their best not to pay your claim when needed.

Find Customer Reviews

A person who has experience with a company can best tell about their good and bad sides. Luckily, you can find many customer reviews of insurer online. There are many review websites that have user feedbacks from many companies. You can Google 'name of the company' with 'reviews to find customer feedback. Ask for advice if you know someone who is an insurer of the company under review. All that aside, it's also not very difficult to build an online presence with fake testimonials.

You have to use common sense to differentiate between real and fake feedbacks. You can't be certain about the credibility of the reviews found on the website of the insurance company. It's possible they may only show good reviews; after all, they control it. The feedbacks found review websites are usually legit, but they can also be altered with the right amount of investment. 

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