3 Ways to Know Cheap Auto Insurance Online Is Trustworthy

If you want to know how to find cheap auto insurance online that is trustworthy, there are 3 simple ways. You probably have experience using the Internet, so the task will not take too long.

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The numbers of auto insurance companies bragging about their cheap rates are countless. In fact, this is how most providers actually find their customers. Their promises of cut-rate policies and convenience appeal to many new drivers who do not know or understand the specifics involved.

In reality, affordable coverage from an online provider is a great way to save money. However, a little education goes a long way in this situation. You must consider other factors besides cost. What do you gain if the car insurance company is not trustworthy and what can you lose? Before you start shopping for car insurance online, make sure your money and your time do not go to waste.

One: Everything Is Public Knowledge

You can immediately tell if an online insurer is legitimate and reputable if they put their business in the public eye. A trustworthy company will have nothing to hide and will want to flaunt their positive reviews, ratings, and customer satisfaction scores.

You should stay away from any car insurance company that takes time to research. They may be scam artists who only want your money.

Licensed Providers

The online car insurance company that follows the proper procedures will have information listed in several locations. First, they must register their license. Depending on your state, this type of search is very easy.

For example, if you live in Kentucky, your Department of Insurance has a list of all auto insurance companies registered and fully licensed to write policies in this state. You should see the major car insurance carriers here, as well as any online operators. National car insurance companies must still list their license status individually.

Unfortunately, many online providers are unlicensed and do not have an obligation to comply with any state laws regarding insurance.

If they shut down, you cannot seek compensation for the money you paid in premiums. In other words, they can file bankruptcy with full protection of the federal laws.

Licensed insurers have security from the Insurance Guaranty Fund. This means they protect a policyholder if a company can no longer meet their financial responsibilities.

Customer Satisfaction

Once you verify their status with the state, next find out how their customers feel. This is also a simple, but necessary step. Only by reviewing previous history can you determine if the company has reliable business practices.

Many resources like the Better Business Bureau are helpful, but they only provide information if the company is an associate. Many Internet-based companies are not members of the BBB; therefore, you will not find any information.

Instead of using the BBB as a resource, stick with your state’s legal, finance, and insurance departments.

If you live in Maryland, you can go directly to the Office of the Attorney General for all kinds of complaint statistics. They archive their database going back several years so you have a clear understanding of the way this company operates.

Two: Their Quotes Are Comparable to the National Average

The cheaper the quote, the more likely the company does not want you to think past price. This means they probably offer low rates because they cannot match coverage levels of other, more respectable companies.

It is virtually impossible to provide an auto insurance quote that is substantially lower than the national average. The company would never make any profits. If one quote is drastically lower than the rest then this is a red flag that something is not quite right.

Rather than accepting an unbelievably low quote, you should take a look to see what the average customer pays for the same level of service you want. You can find this information by going to Insure U, which is a division of the National Association of Insurance Commissioners.

They have a full-length guide for auto insurance shoppers, which includes rate and premium coverage information. They update their data annually so you are sure to have the most recent details. The great part is they receive these numbers directly from the auto insurance industry. Once you have the statistics, you can shop with confidence.

Three: You Can Contact Them by Telephone or Mail

Although an auto insurance company has an online method of operation, you should still have the opportunity to call or write if you choose. One way to know that you selected a dependable provider is by reviewing every aspect of their website.

They should have a section where you can send inquiries by email. The process should have clear, concise directions with an expected resolution time. Most customers like the idea of sending email messages because of the convenience. However, their attention to detail in this area should be precise.

You should also have the option of contacting them by telephone. Maybe you need to reach someone urgently and cannot wait for a response by email. Even when they have an instant messaging or chat session available, the telephone number should still appear on their website.

There should be a live representative at the receiving end as well, not just a recording asking for your name and contact number.

A responsible business will want their customers to reach out when necessary.

Finally, customers like to know that the company is indeed a business, not some website hiding behind an email address. For this reason, it is important that they place their physical address somewhere in plain site for you to research. You should be able to find them in the yellow pages or Google within a few keystrokes.

When to Become Skeptical

While you peruse the company online, be wary when if there are limited ways to make your payments. For example, a reputable company accepts all types of methods, including checks, credit cards, EFT or electronic funds transfers, and even money orders.

A financially sound company has spent a lot of money building their financial contacts and they are sound investors. They are very flexible and accommodate all payment types. Limited methods that are a cause for concern include using a wiring service, like Money Gram or Western Union.

Although the wire services noted are reputable, many scam artists use these wiring services because the receiver takes no risks. The sender pays the amount of the transfer and canceling the transaction is very difficult.

In addition, do not give out any personal information unless you complete a thorough investigation. It can be extremely easy to fall into this category because you may receive a great quote initially.

It is dangerous, however, to give out any personal information because you really do not know if this company is reputable yet.

You should be able to receive a quote based on very general questions, like zip code and make and model of vehicle. Once you have this in hand, go ahead and start your investigation. Only after you feel safe should you pursue the company and give them additional personal data.

How to Report a Scam

Luckily, the numbers of resources increase each year for consumers to fight against auto insurance fraud. This includes phony online companies that represent themselves in a false manner. They are the worst types of criminals who hide behind their computers. They make it difficult for consumers to trust again.

Fortunately, the National Insurance Crime Bureau exists to protect buyers. They collaborate with the legitimate insurance companies and various law enforcement organizations. Your first call should be to their toll-free telephone number. Make sure you have as much information as possible. They will probably want documented proof.

You can also use their web application from your cell phone, laptop, or tablet. It is an excellent way for busy customers to reach out without having to be at home. Sometimes, you do not find out that your online auto insurance company is fraudulent until something happens. There is a high probability that you will not be at home when this occurs.

Since you completed your car insurance application online, you should already have a copy saved. You can contact the NICB and email the data in just a few minutes. The faster they begin your investigation, the sooner you receive resolution.

Research Offers Protection

Protection begins by doing your due diligence and taking some time. Online research is at your fingertips so take advantage of rating companies like J.D. Power and A.M. Best, along with your state entities.

As long as there are ways for unscrupulous people to cajole you into spending your hard-earned money, they will continue to do so. You have the responsibility to report these swindlers in an effort to inform and safeguard the general public.

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