Choosing the right coverage is just the first step. You must also choose a good insurance company if you want to maximize the chance that your claims will be paid. Look for the following qualities when choosing your auto insurer.
- Reliable and Reasonable - Insurance companies should be reliable, and offer reasonable coverage for the prices they charge. In some states, there isn't much difference in price among insurance companies because of state mandates. In most states, however, companies will quote different prices for similar coverage.
- Covers the Vehicle at All Times - Many small insurance companies offer low rates compared to the big ones because of their lower overhead costs. But, when there is an accident and an insurance claim is filed, these small companies can sometimes be a pain. They may try to wash their hands and say, "it's not covered under your policy." That's not what you want to hear when you really need them after paying your premiums for months. Also, don't go with a local insurance company that doesn't cover out-of-state accidents. (An accident can mean higher insurance costs - even if it wasn't your fault; to learn more, read Will Filing An Insurance Claim Raise Your Rates?)
Be a smart buyer: do your homework and check out what a company's policy does and does not cover before purchasing your policy. When considering any company, big or small, whose costs are lower, also consider their customer service. Further, it's a good idea to investigate the company's financial strength (which directly impacts their ability to pay your claims) through a rating service such as A.M. Best.
Also keep in mind that a company offering a discount on the first month or two of premiums will probably make up for that discount with higher rates in the following months. Overall, you want to find the middle ground between price and quality.
Read more: Beginner's Guide To Auto Insurance | Investopedia http://www.investopedia.com/articles/pf/08/beginner-guide-auto-insurance.asp#ixzz3ycqcybjC
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