8 Reasons Why You Should Compare Auto Insurance Before Buying

Buying car insurance can be a very confusing process, particularly if it’s not something you do very often or have never done before. It can be tempting to just look at rates and pick what looks like cheap auto insurance. However, there are many other different aspects to consider before making a buying decision. Try our FREE quote comparison tool by entering your ZIP on our homepage!

When you are buying car insurance, you want to find an insurance company that offers more than just the cheapest rates. You also want an insurance company that will pay claims quickly and efficiently and will provide you with the best service possible.

Reason #1 – Comparison Shopping Saves You Money

By comparison shopping, you can find out about potential discounts that may lower your car insurance premium rates. Many companies offer auto insurance discounts that you can combine to substantially decrease insurance costs. By reviewing insurance company websites or talking to independent insurance brokers, you can learn about discounts that can be applied if you are a good driver, have a good student driver, are a senior driver or have multiple cars to insure on your policy.

Auto insurance comparison can be accomplished many ways. You can talk to an independent insurance broker, who will be able to help you understand your insurance needs and provide you with several car insurance rate quotes. You can also get several rate quotes though insurance comparison websites, which allow you to receive quotes from multiple companies with a single request.

Reason #2 – Comparison Shopping Can Reveal Financial Health

Financial health is one of the key characteristics you should look for in a potential auto insurance company. You can review independent evaluations of financial health on potential insurance companies through the websites of Standard and Poor’s, AM Best and Fitch.

Financial heath rating grades are based on financial reserves, insurance company credit rating, financial practices and length of time in business.

Insurance companies with strong financial health are able to quickly and easily pay claims from policyholders.

Reason #3 – Comparison Shopping Informs About Claims Processing

Claims processing satisfaction is often measured in consumer satisfaction ratings, such as those found on the websites of JD Powers and Associates and Consumer Reports. Claims processing efficiency is importance since it impacts how quickly your claim is approved and paid.

Reason #4 – Comparison Shopping Informs About Customer Service

Many consumer satisfaction reports also evaluate customer service performance. Most of your contact with your insurance company will be through the customer service department.Look for auto insurance companies with high ratings in this area, which is usually an indicator of ease of accessibility and helpfulness. Customer service should be available 24/7 and representatives should be helpful with all of your questions.

Reason #5 – Comparison Shopping Reveals Consumer Complaints

Consumer complaints can be a strong indicator of potential problems with an auto insurance company. Visiting your state’s Department of Consumer Affairs website can tell you if there are large numbers of complaints filed against an insurance company you are considering.

You can also learn about consumer complaints from the Better Business Bureau. Although almost all insurance companies have a few complaints filed against them, a large number of complaints can be an indication of financial instability, a tendency to deny claims, dramatic increases in premium rates or questionable business practices.

Reason #6 – Comparison Shopping Can Provide Insight into Overall Consumer Satisfaction

Overall consumer satisfaction can be an indicator into how well au auto insurance company meets the needs of its policyholders. Many consumer satisfaction indexes survey whether existing customers would recommend their car insurance company to someone else. Additionally, consumers are also asked if they plan on renewing their policy with their existing auto insurance company.

Customers who are happy overall with the performance of their insurance company will often report that they plan on continuing their coverage with their current company and would be happy to recommend that company to others.

Consumers who give their auto insurance company high overall satisfaction rankings are usually happy with most aspects of company performance. They believe that customer service is helpful and meets their needs and they are happy with premium rates and how claims have been handled.

Reason #7 – Comparison Shopping Can Inform You About Additional Policy Benefits

Although you may be researching various car insurance companies based on the specific type of insurance you are seeking, comparison shopping also allows you to gather information about other benefits that may be available. Frequently, car insurance companies now also offer benefits such as roadside assistance, identity protection, rental car assistance and travel concierge services.

These benefits can make the difference in choosing a potential car insurance company when premium rates and other aspects are similar, particularly if the benefits offered include services you value or may use with any regularity.

Reason #8 – Comparison Shopping is Smart

Above all else, comparison shopping for auto insurance makes you a smart consumer. By learning about all of the different aspects of potential car insurance companies, you can make an informed choice based on more than which company offers you the cheapest premium price. Insurance involves more than just paying your premium and having coverage.

For the best car insurance coverage possible, you should look for a company that is financially strong and will quickly and efficiently pay claims. You should also seek a company that is available around the clock, so that you can speak with them if you have a question or an accident and need to talk to them immediately. Enter your ZIP into our FREE quote generator and start saving big today!

Final Thoughts

Auto insurance is important. It is mandatory in 47 states if you want to register your car and drive legally. Buying car insurance is not a matter of finding the lowest price possible and throwing a dart against a board and picking a provider at random. By comparison shopping, you can save money and make an informed choice in the process.