Auto Providers
Choosing a Car Insurance Company
There’s no shortage of car insurance companies. An online search by zip code can easily locate insurers nearby, and quotes can be compared at the click of a button. The ability to quickly find this information online leads many people to obtain their auto insurance this way; it also encourages car insurance companies to price their coverage competitively.
Older auto insurance companies have built solid reputations through a history of providing affordable coverage and excellent customer service. These long-time insurers have a proven track record of paying claims in a timely manner, inspiring confidence that they will have the funds to meet their obligations even in economic hard times.
But predicting the future viability of newer car insurance companies can be difficult. Fortunately, state governments provide constraints and regulations for all car insurance companies. For example, although insurance companies often invest their premiums, they are precluded from investing in high-risk ventures. And all insurers are required to contribute to a state fund that will cover a company’s pending claims in the event of bankruptcy. Such safeguards represent a commitment by state governments to protecting insurance consumers from theft by rogue, fly-by-night companies. Oversight of these measures is accomplished through licensing and regulation of all insurance providers as well as their intermediaries.
There are a lot of factors to consider when choosing an auto insurance provider. A proven track record of honesty, professionalism and solvency are important. But this doesn’t mean you shouldn’t consider a newer company. The insurance industry is competitive, and young companies are highly motivated to provide the best rates and top-notch customer service to build their reputation. If you are considering a newer auto insurance company that doesn’t have an established history, it is advisable to do some homework before purchasing coverage. For example, find out who owns the company, what other companies they own, and how those companies have fared. Check out the company’s stock price, and scour the internet for client reviews. Don’t base your decision solely on which company has the lowest quote. Only after careful consideration of all important factors can you make a well-informed decision about the right auto insurance provider for your individual needs.
Understanding State Minimums
As America's drivers take to the street, they should be aware that all states require motorists have auto insurance coverage. While rules governing insurance requirements vary from state to state, most, if not all states have a legal minimum coverage that drivers are required to purchase. It is noteworthy that most minimum requirements relate...
Should You Bundle Insurance?
Many people don't compare all of the options when it comes to purchasing insurance. They might go with the company their parents or friends use, or simply call the company that has the most memorable advertisements. In some cases, this works out, but it's not always the smartest move, and it's definitely a hassle to deal with multiple ...
How Credit Affects Rates
Having a good credit score can be advantageous for you in many ways. You will be able to get better interest rates on credit products such as car loans, credit cards and mortgages. A good credit score can also benefit you greatly when it comes time to apply for car insurance, as it has the potential to give you lower premiums.