Interesting, isn’t it, that auto insurance is one of the very few things in life that we all need to buy but hope we’ll never have to use? But when we do — due to accident, fire, theft, vandalism, weather damage, whatever — is not the time to wish we had chosen it better. Once you have determined what types and how much insurance you should carry on a given vehicle, do yourself the major favor of researching providers and gathering quotes.
Insurance companies are not interchangeable. Some are large, others small, and some are national or regional. Then others will offer a wider variety of policy choices to suit your needs. Still, some insurers offer more personal customer service or just cheaper rates. Then there are those who sell insurance directly to customers or work through agents. You can also find some who work through multi-company brokers. Finding the best balance of policies, prices, and service is well worth investing some time and effort.
Most of this research can be done fairly quickly and easily online. But if you are not online, or prefer not to work that way, look for local ads and pick some companies or local agent names, make a list, and make some calls. Either way, important and usually reliable sources of information and recommendations on insurance providers are friends and family who have long-term experience with their own.
If you do choose to research online, make your first stop on your state’s Department of Insurance website. Once there, you should be able to find out which companies are licensed to sell insurance in your state (don’t consider one that isn’t) and complaint ratios (customer complaints per 1,000 claims) for those that are.
Then you might check the Better Business Bureau (BBB) for ratings of each company you’re considering, how long it has been in business, and information on its customer complaints. Then maybe check a site such as J.D. Power, Standard & Poors, A.M. Best, Moody’s, or Fitch for each company’s financial condition.
Now you’re ready to narrow down your candidates and ask for quotes. Companies that sell direct will provide quotes for your specific vehicle(s) and coverages online, or by phone. We recommend getting at least three on identical coverages to contrast and compare. Or you may choose to work with a single-company agent who can help you find the best coverages and rates from his or her company.
Or maybe a broker who can shop and compare several companies to find the best available coverages and rates. Dealing directly with providers may be the cheapest way to buy insurance, but you might decide that an agent’s relatively small commission or a broker’s fee may be well worth the personal service and advice it buys.
Yes, doing all of this will take some time and effort. But just as you should never buy or lease any vehicle without investing due time, we don’t recommend investing in auto insurance without doing homework sufficient to ensure that your investment is a wise one.
Because, much as you would rather not, you just may have to use it one day.
