Choosing a car insurance company–more than just rates

Reader question:

How do I pick a car insurance company?


Good question.

There are a lot of car insurance companies, and many of them offer very similar things, so it can be difficult just to tell the difference between them, much less make a choice as to which one is better in general and better for you most of all. Here are some things you should keep in mind when looking for a car insurance company.

  • License. In order for you to get proper,legal coverage from a car insurance company, that company needs to be licensed with the state. Most states require that you have insurance with a state-registered company,so getting your insurance with a company that isn’t could mean you’re breaking the law. To make sure that a company is licensed, call your state insurance department.
  • Rates. This is the area where insurance companies vary so wildly. Different companies will offer you very different rates, so it’s a good idea to shop around and get a handful of quotes before making a decision. Go to the link on the top of the page to get quotes from several companies.
  • History. Pick a company that’s stable and not likely to go under. Look for one that’s been around for a number of years and has a history of following up with its settlements. You don’t want to go with a company, and then the second that you need to file a claim, suddenly nothing’s there.
  • Service. The company you should choose should provide you with the information you ask for and handle your requests with ease and respect. Talk to other customers to find out what their experience has been with the company. Getting in a car accident is a stressful experience, and so if you ever need to file a claim, you want to be with a company that is as helpful as possible.
  • Convenience. Is the office close? Are you able to handle business over the phone or internet? Whatever’s best for you!


Fashun Guadarrama.

Posted in: Auto Insurance

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  • Red

    Do you have any recommendation on which company offer the cheapest car insurance?