If you watch TV or listen to radio advertisements, every auto insurance company has the best rates, the best coverage and the best service. But, how do you know? Here are a few tips to get you started.
How to Find the Best Auto Insurance
Let’s face it; there’s nothing more frustrating than having trouble with auto insurance companies. They charge so much for every month for a service you need once every couple of years – if that.
And then, when you do need the best auto insurance help, when you’re in an accident, when there’s damage, you get the worst auto insurance help. That’s the worst. For years I was paying best auto insurance prices for the worst auto insurance service.
Some of my complaints are that the claims are rejected far too often. I don’t get it; it’s not like I wanted to damage my car! Even the best auto insurance companies have such convoluted and confusing policy options that I never am quite sure what is covered and what isn’t.
The worst thing about even the best auto insurance companies is the wait time. The settlement payout process takes forever and is never exactly what they say it is. Luckily, there’s other companies out there. Here are some ways to find the best auto insurance.
How to get the most for your money
The easiest way to find the best auto insurance company is to ask the staff at your local auto repair shop. Think about it: who works with auto insurance companies more than the guys that have to deal with as part of their day-to-day jobs?
Many of these auto shops go through the same frustrating ordeals that us regular guys go through when dealing with the insurance companies, and they won’t be shy about telling you what they think if you ask. The shop I’ve gone too even has a rating system of the best auto insurance companies right in their lobby.
Another good way to find the right insurance company for you is to check online and through consumer forums. The Internet has been a great way for information to get around- for people to share their worst and best auto insurance company stories.
Just keep in mind one thing; most people go on web sites to complain about bad service and products. Most of the time if they are happy with a service they don’t think to go online and share it with the world. Many times, they’re too busy enjoying it! That said, it’s good to know some of the worst things that could happen – just remember it might not be whole picture.
Choosing the right auto insurance and making auto insurance claims
Like everything else, auto insurance is a necessary, but pricey expense. When you make auto insurance claims, your policy becomes an even spendier deal. You may not realize that when you make auto insurance claims, even minor ones, when your policy comes up for renewal, your premium may go up substantially.
Auto insurance companies have quite complicated algorithms which assess the risk of each insured individual.
When shopping for auto insurance, or updating your current policy, ask your broker for advice on choosing a deductible and the effect of a range of deductibles on your premium. A high deductible generally decreases your monthly premium amount.
The down side is that you are responsible for the cost of repairing damages to your vehicle, up to that amount. If you choose, say, a $500 deductible, be prepared to be able to sustain the cost of the repairs or drive around with the damages evident. A simple fender bender, sustained by hitting your own mailbox, may not require a police report, but can significantly detract from the appearance of your car, impacting your resale value as well.
However, if someone runs a red light and causes more than $200 in damage (this figure may vary from state to state) to your vehicle, a police report is required.
This means that the accident will be reported to your insurance company in any case, almost certainly resulting in an increase to your premium next time around, regardless of which driver was at fault! Here you have a case of having to make auto insurance claims, whether you like it or not!
Choosing a $0 deductible for your policy definitely raises your monthly premium. The up side to this scenario is that any damage is covered, right down to a cracked tail light. The down side is two-fold. In order to realize the benefit of no cost repairs to the body, you’ll need to make an auto insurance claim.
Second, if you make a couple of claims which might have cost just $50-100 each as an out-of pocket expense, your premium will increase automatically.
One example that fits this situation involves someone clipping your tail light, while backing out of a parking spot, while you’re in the grocery doing your shopping. Another common example is the theft of your radio from your unlocked car.
However, the insult-to-injury factor arises when you have a $0 deductible, but significant damage to your car in an accident. Your insurance policy will pay for the repairs, but your premiums will go through the roof upon renewal. Some insurance companies may even refuse to renew your policy!
This is why it’s important consult your insurance broker, to weigh the amount of your deductible against the corresponding difference in your monthly premium.
If you can afford to cough up $100 for minor damages of the parking spot variety, this might reduce your premium by an amount that adds up to $100 a year. If you’re lucky, this can be a $100 savings.
With that said, auto insurance companies offer free quotes. Always shop around. Don’t settle for the first good price you find. Do research, compare different quotes and ask other auto professionals. If you follow these tips, you’ll surely find the best auto insurance for you!
Categories: Auto Insurance Buying Guide.