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Insurance | 29.07.2014 - 18:29

Five Tips for Selecting an Auto Insurance Policy

Choosing the right policy can get you better rates and coverage that fits your needs.

Insurance coverage is required of all drivers, so it’s no surprise that there is an abundance of auto insurance providers.  The sheer number of auto insurance companies available can make choosing the right one difficult. Here are five tips to assist you in making a decision that meets your coverage needs:


Compare Coverage Options


One of the first things you should do is compare several company's coverage options. Figure out the type of coverage you are seeking and compare the same type of coverage across companies. Insurance policies can include personal injury, liability and comprehensive and collision coverage. It is also important to know what type of coverage is required by state law.


Decide Whether You Want a Local or National Company


There are local and national insurance agencies. Local companies are more likely to have a brick-and-mortar presence that will allow you to walk-in and talk directly to a broker or agent. This is something that is not likely to occur with a national company, so if you prefer to have an ongoing relationship with your insurance agent, going local might be a better option for you. It is important to note that some local agencies are underwritten by national ones. Most companies offer competitive pricing, but it is not unheard-of for a local company to provide services at a lower cost.


Use a Licensed Insurance Company


It is pretty much known that larger insurance companies are licensed and insured. However, there are a lot of lesser-known ones that sell policies to consumers. Make sure the company is licensed and covered under your state's guarantee fund. The guarantee fund protects policy holders should the insurer become insolvent or default.


Read Customer Reviews


Reviews of actual policy holders says a lot about the company. Some states have a department of insurance website that lists the consumer complaint ratio for insurance companies. This ratio tells consumers how many complaints there are per 1,000 insurance claims. According to a Corner Brook car insurance agent, it is a good idea to avoid companies with a high consumer complaint ratio.


Look into Discounts


Do not let the cost of an insurance policy deter you from using them. Some insurance companies offer discounts. Some of these discounts are immediate, while others exist for longtime customers. Consider using the same company for all of your policy needs. Additionally, insuring more than one car may make you eligible for discounts. A lot of insurers offer discounts based on driving history, so if you have a record of safe driving, bring this up when you meet with agents.


You are required to have auto insurance, but you are not required to use any particular company. Use these five tips to assist in your research. Choosing the right the company can get you better rates and coverage that fits your needs.


Informational Credit to Steers Insurance



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