Choosing the right auto insurance company is a crucial decision. You want to make sure that you don’t pay too much and go over your budget. At the same time, you want to get the coverage and service you expect. The good news is that by looking for just a few important signs, you can be on your way to finding the best car insurance. Look for the following signs of a good insurance company.
1. A Long History
Start by looking at the history of the insurance company. The longer that it has been around, the better of a sign this is. That is not saying that a new insurance company won’t be good, but there is a greater risk with newer companies.
If you choose an established insurance company with a long history, you know that they can weather various economic situations. This also gives you even more opportunities to find reviews and ratings for the company.
2. Financial Stability
In addition to a long operating history, good insurance companies should be financially stable. This helps ensure that they will be able to pay out your claims. Financial stability is especially important in case of major disasters that could drive up the volume of claims. In that case, companies without financial stability may struggle to pay out all the claims.
3. Good Reviews and Ratings
Speaking of reviews and ratings, you should look for an auto insurance company with positive reviews and ratings. You want to look at both of these things from past customers and independent third-party players in the industry.
Remember that reviews and ratings don’t have to be perfect. After all, no company is perfect. However, they should be positive in general. Ideally, the rare negative review will seem out of place compared to others. For example, one customer may complain about something other reviews praise, letting you know it was a rare occurrence. It is even better if the insurance company replied to a negative review and resolved the issue to the customer’s satisfaction.
You can use reviews as a way to get insight into specific customer experiences. For example, you can learn how easy it is to process a claim, how long it takes, whether the insurer suggests good repair shops, and how friendly and helpful customer service is.
4. Great Customer Service
Customer service is another important trait of any good auto insurance company. There are two main factors: availability and helpfulness.
Ideally, auto insurance companies will have 24/7 customer service, as you can get into an accident at any time. The best ones also offer various contact points, including phone, live chat, and email.
To get a feel for customer service, look at the insurer’s website and customer reviews. You may also want to contact the customer service team and ask a few questions. This will give you an idea about wait times and helpfulness. As a bonus, it will also clear up any doubts you have.
5. Clarity of Information and Policies
As you talk to a representative or look at the company’s website, you want the information on policies, premiums, limits, deductibles, and coverage to be clear. If something is not clear, you should be able to ask customer service or an agent for clarification and get a straightforward answer.
If something is purposely vague and you can’t get a straight answer, it is not a good insurance company.
This is one thing to look for in reviews. Confirm that reviewers weren’t told something was covered only to realize it wasn’t when they needed that coverage.
6. Quick and Easy Claims Response
Good auto insurance companies will be ready to process claims quickly. They understand that the faster they process your claim, the sooner you will be able to have your car repaired and get back on the road.
As part of this, they should make it easy for policyholders to reach them and start the claim process. Most reputable companies will let you file a claim online or with an agent. They will even have a mobile app to let policyholders start the process right away.
The payouts from claims should also be prompt. While some claims will naturally take longer, the majority of claims should be completed as fast as possible, so you can return to your normal driving routine. This is another aspect you should evaluate based on reviews.
7. Competitive Prices
While price should not be the only factor in determining if an auto insurance company is good, it should be a consideration. The most important factor here is that there is a clear pricing structure without hidden fees.
Remember that if you opt for cheap insurance, you are likely to get poor coverage and fight to receive payouts from claims. It is definitely worth spending a bit more, but within reason, on a good company.
When comparing prices, be sure to look at various combinations of premiums and deductibles. You should also pay attention to discounts.
8. Quality Repairs From Quality Facilities
Your auto insurance company has some control over where you can get your car repaired, so you want to make sure that their approved facilities are of good quality. Ideally, there will be a variety of options to choose from, so you can select a mechanic you are comfortable with. There should also be a wide network that extends across the country or to anywhere else you may potentially drive.
The quality of work at those repair facilities should also be good. Cheap insurance providers may force you to choose substandard parts to save money. By contrast, good insurance companies will only approve OEM or new parts, as they understand the importance of quality repairs.
9. They Have What You Need
One of the most important traits of a good auto insurance company is that it has the insurance product that you need. For most people, this is no problem. However, if you have a classic car, want roadside assistance, have especially low mileage, or have another unusual situation, make sure your chosen company offers coverage that fits your needs.
