Auto Insurance Companies

About Auto Insurance Companies

In almost every state, auto insurance is a prerequisite to registering your vehicle. Auto insurance companies supply consumers with the insurance coverage that is required by state laws.

There are currently hundreds of auto insurance companies in the U.S. alone. Some of these companies offer other insurance coverage in addition to auto policies, but many concentrate solely on auto insurance.

It’s hard to say which companies are better than others, but you can investigate an insurance company’s rating through independent companies, such as A.M. Best and Standard and Poor’s.

Major companies worth looking into include:

• AAA Insurance
• Allstate Insurance
• American Family Insurance
• Farmers Insurance
• Geico Insurance
• Mercury Insurance
• Nationwide Insurance
• Progressive Insurance
• State Farm Insurance

Although ratings are a good thing to look at, other factors are even more important. As you compare auto insurance companies, ask these questions:

• Is the policy cost-friendly?
• Are there any discounts available that could apply to your situation?
• How does the company handle claims?
• Is there a 24-hour emergency number you can call?
• How is the company’s customer service?
• What is the company’s cancellation policy?
• What types of auto insurance coverage are offered?
• Does the company’s payment policy work for your finances?

Shopping for Auto Insurance

When shopping for auto insurance, it is a good idea to speak to your family, friends, neighbors, and co-workers. They may be able to offer you references and/or a list of auto insurance companies to stay away from.

If you are an experienced shopper, and you know exactly what type of coverage you want, you can choose three or four companies online that are worth considering. Your next step will involve getting a quote for the coverage you need.

If you are not an experienced shopper, or if you have any questions about what type of auto insurance coverage is right for you, you may want to consider speaking directly to an agent who can answer your questions.

Getting a Quote

Try to contact at least three or four auto insurance companies for a quote. The cost of insurance policies can vary significantly from company to company. By getting several quotes, you can easily compare prices and coverage to ensure you get the best deal available.

When filling out an application for a quote, you will be required to provide personal information, such as your age, gender, where you live and work, the number of miles you drive, who will be driving the car, and the type of car to be insured. Your driving record and your credit history will also be investigated, as this information factors into the cost of your policy. The better your driving record and credit history is, the lower your insurance premiums will be.

Money Saving Tips

There are many different ways that you can save money on auto insurance:

• Keep your driving record in good standing! Avoid tickets and accidents whenever possible. If your record is clean, you may be able to qualify for safe driving discounts.
• Where your seatbelt. Some companies offer a seatbelt discount.
• Consider the associations or organization of which you are a member. You may be able to get a discount for being in the military or for belonging to a credit union.
• If possible, insure your home and auto under one policy. This will enable you to take advantage of multi-policy discounts.