How Should You Compare Auto Insurance Quotes?

Throughout the articles on our site, we strongly suggest consumers compare their current auto insurance premium with what other companies offer. There is more to choosing an insurer than picking up the phone and dialing the most recent company you saw an advertisement for, purchasing the first option that the representative suggests. Looking further into the future and the possibility of having to file a claim, everyone should realize the importance of having this cushion or protection of insurance, and getting the best coverage for the lowest price is usually the most important part of the process. However, there are other reasons why consumers should shop around for insurance quotes.

Get the Best Price
Any savvy shopper can confirm that the only way to get the best and lowest price for a product is to look around at what all of the companies are offering. Whether the consumer is comparing grocery expenses or insurance prices, they know there is more than one company offering this very same product out there. Because companies are competing to get the business of all consumers who desire the product, they will do whatever they can to take hold of the consumer and get their business to make a profit. With today’s economy on the fringe and people tightening their “money belts,” companies know the best way to lure someone in is with a low price through their radio and television advertisements, as well as these claims displayed on large billboard and magazine ads.

Getting the best price doesn’t just mean being offered the company’s lowest price available, but it means being offered the lowest price for the desired coverage from any company. Take for instance the example of Driver A, who has been with the same auto insurer for years and has seen a gradual increase in his premiums over the years for the basic coverage he carries. His friend is paying for the same coverage with another company, and he decides to check them out and gives them a call. It turns out that for the same coverage he is already paying for with his current insurer, this new insurer could save him 10%. Driver A wouldn’t have known this if he hadn’t compared his rates.

Find More Coverage
Typically all insurance companies offer the same types of coverage, but occasionally some insurance agencies provide more protection within their terms of use than other companies, or the price of their options can be less when compared to others. If drivers are basing their insurance coverage off of a certain budget amount, it would be understandable that the driver wants as much coverage for that price. To make sure this is true in that driver’s situation, she would need shop around to see what she could get from other companies with her budget.

A more specific example would be she takes her budget and makes a realistic hope to purchase the state requirements of bodily injury and property damage liabilities, as well as comprehension and collision and uninsured motorist coverage too. Auto insurance company “A” could only provide her with the state requirements and comprehensive and collision to fit in her budget, while company “B” could provide all the coverage she desires and not go over her budget. For this case, both companies had the same conditions in their terms of coverage, so it was an easy choice for her to choose which company to go with. Had the terms of coverage varied from each other — i.e. comprehensive coverage was different in company “A” compared to company “B” — this driver would have to consider which coverage she would want versus how much she was willing to pay.

Better Customer Service
This reason isn’t always the most popular when wondering why one should compare auto insurance quotes, especially since normally a driver doesn’t need to speak with any of the representatives to get an accurate quote comparison. However, the level of customer service could be a deciding factor between companies offering the same price.

When a driver has been working hard to look at all aspects of insurance carriers’ quotes, they often take other things (besides price) into consideration when making their final decision. The top carriers usually offer similar services and coverage, so it may take something else to help the driver know who to choose. A quick phone call to every insurer that provided a quote will help get a better idea of how well the customer service department works. A polite, knowledgeable staff will be better to work with when filing a future claim or when a policyholder has a question about their policy. Allow the representative to demonstrate how much they know and pay attention to their attitude towards the potential customer. Do they seem irritated by the questions? Are they hurried and trying to get the customer off of the phone? Do they speak calmly with manners?

Additional Benefits
In addition to the customer service provided, other benefits for policyholders can help in comparing car insurance rates. So many agencies have their own Websites now, where bills can be paid online and questions answered without having to speak to a person, at any time of the day or night. Also, check to see if they offer any special discounts that are applicable to the policyholder or other members of the policy, which can help keep prices low. Conveniences such as these could help a person choose which company and quote to purchase.

Knowing the financial stability of an insurer can help predict their ability to pay out any future claims. Check with A.M. Best for a third-party’s knowledge of the company’s financial situation to better choose which quote to purchase.