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There are lots of choices when it comes to car insurance companies. Here are a few things you should consider in selecting your next auto insurance provider.

How to Find a Car Insurance Provider

If you’re in the market for car insurance, you’re probably wondering which car insurance company you should go with. You obviously want to get a good price, but it’s also important to select a provider you can count on. Here are a few things you should consider in choosing an auto insurance provider.

1.   The Provider Offers Competitive Rates

Having a low premium doesn’t necessarily mean you have a good auto insurance policy. Your premium may be low because you have bare-bones coverage and aren’t adequately insured.

Rather than focusing solely on price, compare quotes from multiple carriers and verify that the prices quoted by the carriers you’re considering are competitive. Just make sure you’re comparing “apples to apples,” meaning you’re getting quotes for the same coverage with the same limits and deductibles from each company providing a quote.

2. The Provider Is Respected and Well Established

The auto insurance industry is just like any other industry in that businesses continually come and go. You don’t want to learn that your insurance provider is financially strapped or in the process of going out of business after you’ve filed a claim and need them most.

A financially sound, well-established provider offers you peace of mind knowing they’re in it for the long haul and you can count on them to be there for you when you need them. This is not to say a newcomer won’t be there—after all, every insurance company was “new” at some point in their history—but there’s typically less stability and greater risk with an insurance company or agency that’s just getting started.

3. The Provider Rates Well

The internet makes it easy to find ratings for just about everything, and auto insurance companies are no exception. You can find customer reviews on sites like Yelp or by checking Google reviews for insurance providers and agents. Individual customer reviews generally focus on price, customer service, and the overall customer experience, all of which are important considerations in selecting an auto insurance provider. But customer reviews tend to be more subjective and less objective than other comparisons out there.

For more analytical and objective reviews, consider researching studies like J.D. Power’s U.S. Auto Insurance Study or car insurance company reviews by ConsumerAffairs or found on reviews.com. Just keep in mind that some sites may be receiving compensation for their reviews, which could influence their reviews and even which companies they choose to write about. If this is the case, it should be disclosed somewhere in the review like it is in this car insurance company rating by NerdWallet.            

4. The Provider Already Provides You With Other Types of Insurance

Many insurance companies offer customers what’s known as a bundling discount. This is a price reduction for having more than one type of policy with them.

Say, for example, that you have a life insurance policy with X Insurance Company. To incentivize you to insure your automobile with them as well, they may offer you a 15 percent bundling discount. The amount of the discount offered varies by provider, and it may be larger or smaller depending on the types of policies you have with the provider. For example, you may get a larger discount if you bundle auto and homeowners insurance than if you bundle auto and renters insurance. If you have more than two policies with the same company—say, auto, homeowners, and life insurance—your bundling discount may be even more substantial. 

There’s another advantage to bundling besides a potential discount. If you’re satisfied enough with a provider to get homeowners or renters or life insurance from them, chances are pretty good they’ll be able to satisfy your auto insurance needs as well. And knowing that a poor customer experience for you could result in the cancelation of more than one policy could serve as added incentive for that insurer to provide you with stellar customer service.     

Finding the right auto insurance provider is similar to finding the right mechanic, barber, tailor, or any other service. You may have to try a few options before you settle on the right provider. Luckily, in addition to going directly to an insurer or agent, there are also a plenty of websites where you can get multiple auto insurance quotes from multiple providers just by entering some basic information.

Even after you find the right insurer, try not to grow complacent. They may only be the right provider for now. Shopping for car insurance isn’t a whole lot of fun, but spending a little time getting quotes from other providers before renewing your existing policy could end up saving you a substantial amount of money over the course of your driving life.  


About the author:

Sean P. Egen

After realizing he couldn’t pay back his outrageous film school student loans with rejection notices from Hollywood studios, Sean focused his screenwriting skills on scripting corporate videos. Videos led to marketing communications, which led to articles and, before he knew it, Sean was making a living as a writer. He continues to do so today by leveraging his expertise in credit, financial planning, wealth-building, and living your best life for Credit One Bank.

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This material is for informational purposes only and is not intended to replace the advice of a qualified tax advisor, attorney or financial advisor. Readers should consult with their own tax advisor, attorney or financial advisor with regard to their personal situations.