More than 221 million Americans hold drivers’ licenses across the country. However, a license isn’t the only thing you need to drive legally in the United States.
Insurance is another must-have if you are going to hit the road. This protects you from serious financial difficulty if you are involved in a collision while driving.
On average, an American driver pays $1,427 a year on car insurance if they have a clean license. However, driving penalities, age, and the number of people on your auto insurance policy can all affect how much you pay. Thankfully, there are plenty of things you can to get the best possible deal when buying auto insurance.
Want to know more? Then read on to find out seven things to consider when choosing a car insurance company.
1. Look for a Local Auto Insurance Company
There are nearly 6,000 insurance companies operating in the United States. That’s not including insurers who work internationally. So knowing which company to choose from can feel overwhelming.
Often global insurance giants will appear first on a Google search. However, it is always worth looking at insurance companies that work closer to your home. Choosing a local company can provide the assurance that you know exactly who you speaking to.
It is a lot easier to get a gauge of the quality of service that a local company provides compared to one that operates across the country. On top of this, smaller-scale insurers may have more flexibility on the kinds of deals they can offer you.
2. Check Their Licenses
If you are interested in getting the best possible auto insurance, should only ever work with a licensed insurance company.
Licenses enable insurance companies to provide coverage in specific areas. Usually, this covers an entire country but a company can hold licenses in more than one country.
If a company doesn’t have a license to cover North Carolina, for example, then this leaves your insurance policy null and void.
Licenses also protect your financial investment in your auto insurance. This means that you can take a company to court if they unjustly refuse to pay out on a claim.
3. Get Value for Your Money
A budget should be a big consideration for anyone when shopping for auto insurance. However, this doesn’t just mean finding the cheapest policy available.
When considering the value of a policy you have to take into account more than price. You should also think about:
- The amount of coverage you get from a policy
- The length of the policy
- Any terms that could affect the price of your insurance premiums
It is always a good idea to discuss any specific needs in person with an insurance company. That way they can help cover everything you need. You should also get quotes from a few different companies so that you can find the best deal.
4. Find an Auto Insurer That Delivers Good Service
Coverage is most people’s main concern when shopping for insurance but it is important to think about service as well. After all, if the worst does happen you want to be able to contact your insurer quickly.
This is why it is worth looking at the quality of service each company delivers. For example, do they offer you a number of different ways to contact them? Do they respond quickly to any queries you have?
The last thing you want is to be stuck on hold during a crisis!
5. Double Check Their Financial Stability
The role of an insurance company is to help you cover the cost of an auto accident if you are involved in one. However, a company can only do that if they are financially solvent.
This is why it is important to check out the financial stability of a company before you take out a policy. Ideally, try to keep track of this over the duration of your policy as well.
You can find out the financial solidity of an insurance company using the ratings given to them by independent agencies.
6. Look at Testimonials
If you really want to know how good an insurer is then you can’t do much better than asking previous customers. Testimonials often provide honest, detailed feedback on the experiences previous customers have had.
This can be useful for finding out more about:
- The quality of their service
- The flexibility of the coverage a company offers
- How quickly they pay out on insurance claims
When looking for testimonials, it is worth checking out reviews on independent sites as well as on the company’s own site. It is important that you look for recent reviews as this will give you a more accurate picture of how good a company is at the moment.
Of course, if you notice any serious red flags in the feedback it’s time to look elsewhere!
7. Deal Directly
A lot of people use insurance agencies to help them find the coverage that they need.
These are independent agencies that take your specific requirements and assess a number of different insurance providers for you. That way they can provide a direct comparison of the different options.
However, these agents also get paid a commission for this service. This means that the prices you pay will always be more expensive than dealing with a company directly. They also don’t usually take into account things such as quality of service and customer feedback.
It might be a little more effort to do the work yourself but it will pay off in the end!
Find the Right Car Insurance Company for You
As you can see, there are a lot of things to consider when shopping for auto insurance coverage. It’s worth putting the time into this, however, as it will ensure you find the perfect car insurance company to suit your needs.
Need help finding the right coverage for you? Then get in touch today for an auto insurance policy quote! We’re happy to help.