How to Research Auto Insurance Companies Before Buying in 2024
When looking at auto insurance companies, consider their financial stability and their customers' opinions of them. Compare quotes and coverage below.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Aug 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- One of the most important car insurance factors to consider when buying auto insurance is the financial stability of the company
- You can research the financial stability of an auto insurance company by visiting the website of an insurance rating organization
- Another aspect you can research is an insurance company’s consumer satisfaction rating
When you are buying auto insurance, it is important to fully understand the kind of insurance you are buying.
It is also important to research and compare insurance companies to do your best to ensure that you are choosing a company that is financially stable and will pay any claims efficiently and fully.
There are numerous ways you can conduct your own research on auto insurance companies, most of which you can perform from the comfort of your own home if you have a computer and an internet connection.
An internet auto insurance company makes shopping easier than ever before, especially when you enter your zip code into our FREE auto insurance comparison tool above!
Financial Stability
One of the most important car insurance factors to consider when buying auto insurance is the financial stability of the company. Insurance companies are financial institutions that must have significant amounts of money set aside as financial reserves.
These funds allow an insurance company to quickly and easily pay claims when filed by policyholders.
During catastrophic events, such as tornadoes, earthquakes or hurricanes, many claims may be filed by policyholders and insurance companies with strong financial reserves are able to pay those claims quickly.
You can research the financial stability of an auto insurance company by visiting the website of an insurance rating organization.
The most popular rating companies are AM Best, Fitch, and Standard & Poor’s. Each of these organizations regularly evaluates insurance company financial reserves, credit rating, and corporate financial strength.
The ratings of auto insurance companies of A+, A, or A- are in excellent financial condition. Insurance companies with lower grades have smaller financial reserves in place, less favorable credit ratings or are less financially strong.
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Consumer Satisfaction
Another aspect you can research is an insurance company’s consumer satisfaction rating.
JD Power and Associates conducts annual surveys to evaluate how happy consumers are with insurance company customer service, claims processing, rates and overall response to their needs.
These types can help you make a final decision when searching for a new auto insurance company.
Consumer Complaints
You can also research an insurance company through the Better Business Bureau. The BBB will certify insurance companies that work with customers to resolve problems and are committed to providing excellent service to their customers.
The BBB also keeps records about insurance companies with high numbers of complaints that are filed with the BBB.
Your state insurance website is another source for information regarding auto insurance companies.
Each state maintains an informational website with information about insurance companies that are licensed to operate within their state.
In addition to licensing information, you can find out information about consumer complaints and lawsuits filed against auto insurance companies.
Comparison Websites
Another way to research auto insurance companies is through insurance comparison websites. Many comparison websites contract with multiple insurance companies and insurance agents to provide quotes for auto insurance.
As a result, you can receive quotes from several companies and only enter your information one time.
By comparing rates, you can have a better sense of what auto companies will provide you with reasonable rates for insurance coverage.
Many comparison websites have consumer forums on which visitors ask questions and talk about problems or issues they have had with an insurance company.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Auto Industry Websites
Many websites that are dedicated to the auto industry have a section that is specifically dedicated to car insurance.
Auto industry websites can also provide you with information regarding the safety of specific car models, including insurance industry evaluations and repair rates.
These websites may provide detailed reviews of auto insurance companies, including consumer satisfaction, premium rate evaluations, and common consumer complaints.
Another source for information is insurance company websites. Almost all auto insurance companies have corporate websites which provide detailed information regarding their company.
You can find out about other insurance and financial products they offer.
You can also read about their company history, customer service philosophy and corporate structure.
Most auto insurance company sites also provide detailed information about their coverage and policyholder benefits. Additionally, you can gain insight into how easy or difficult it may be to file a claim online or speak with a customer service representative.
Unbiased comparison sites also provide a great opportunity to compare rates.
If you are in the process of buying auto insurance, it is important to research potential insurance companies as much as possible. While a company may have a snazzy television commercial tempting you to buy car insurance from them, advertising low rates
While a company may have a snazzy television commercial tempting you to buy car insurance from them, advertising low rates doesn’t guarantee they will provide you with the best insurance coverage possible.
Our FREE auto insurance comparison tool is available to you now when you enter your zip code below.
Frequently Asked Questions
Why is it important to research auto insurance?
Researching auto insurance is crucial for finding the best coverage options at competitive rates, complying with legal requirements, and making informed decisions about protecting your vehicle and yourself in case of accidents or other incidents.
Where should I start my research on auto insurance?
To begin researching auto insurance, consider steps like identifying your insurance needs and budget, gathering information about different insurance companies, comparing coverage options, rates, and discounts, reading customer reviews and ratings, seeking recommendations, and utilizing online resources and tools for further research.
What factors should I consider when researching auto insurance?
When researching auto insurance, consider factors such as coverage options, deductibles, premiums, discounts, customer service, and the financial stability of the insurance
What resources can I use to research auto insurance?
Resources for researching auto insurance include insurance company websites, comparison websites, state insurance departments, consumer reviews, and independent agents/brokers who can provide personalized guidance and access to multiple insurance carriers.
How can I evaluate the reliability of an insurance company during my research?
To evaluate the reliability of an insurance company, consider factors such as financial ratings, complaint ratios, customer reviews, and industry rankings and awards.
What should I do once I’ve completed my auto insurance research?
After conducting your research, you should narrow down your options, contact each insurer for a detailed quote, review policy documents, clarify any questions or concerns, make an informed decision, and complete the application process to purchase your chosen auto insurance policy.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.