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Why is it crucial to compare auto insurance?

Learn why it’s important to compare auto insurance before you buy.

Why should I compare auto inurance?

Shopping for auto insurance wisely involves comparing rates. This can be achieved through various methods. The exact way you compare auto insurance rates matters less than ensuring you investigate all your options thoroughly.

Taking the time to compare auto insurance rates before choosing your policy offers numerous obvious advantages. Not only does it provide a direct cost comparison for the coverage you seek, along with its limits, but it also highlights other vital factors worth considering.

See beyond the basic costs and limits

Judging a car insurance company by only its premiums and coverage limits is simplistic, akin to comparing two cars based solely on their having wheels, doors, and an engine. With a general knowledge of cars, most people can distinguish between a BMW and a Smart Car, recognizing the superior option.

Auto insurance providers can be assessed similarly to consumer goods; you need to understand the fundamental materials and design involved in each policy when you compare auto insurance.

Key factors to evaluate in auto insurance comparisons include:

  • The insurer’s financial health
  • Specifics of the policy regarding what is and isn’t covered
  • The insurer’s claims processing practices
  • Customer service quality of the insurer
  • Customer service quality of the agency or call center

Insurer’s financial stability

Understanding an insurer’s financial stability helps gauge their ability to manage and settle claims effectively. Most insurers are evaluated by agencies like AMBest for financial strength. After comparing auto insurance rates, assessing the insurer’s financial stability should follow.

Some insurers do not seek ratings from AMBest, which might influence your decision when comparing auto insurance quotes.

Understanding your auto insurance contract and policy

Comparing auto insurance rates, coverages, and liability limits is just the beginning. Beneath the surface, the actual contract and policy define coverage applicability and limits.

The policy outlines an insuring agreement, and definitions of terms, and stipulates the relationship dynamics through exclusions, impacting coverage for:

  • Newly purchased vehicles
  • Replacement or temporary vehicles
  • Permissive users and rented vehicles
  • Unlisted household members
  • Incidents involving driving under the influence

These factors may lead to exclusions or reduced coverage limits in case of a claim.

How well does the auto insurance company handle claims?

Buying auto insurance means buying both the policy service and claims services. Saving money on a policy is less beneficial if the claims process is inadequate.

A good claims process is supported by 24/7 availability and efficient claims handling to minimize vehicle downtime.

You also want a claims adjuster who is communicative and supportive throughout the process.

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Understanding service levels

Purchasing insurance through a large call center might seem like a guarantee of excellent service, but service quality can vary, especially after initial interactions. Knowing the level of service and advice you’ll receive post-purchase is vital.

Did you thoroughly compare auto insurance quotes?

Looking only at premiums and coverages can leave many questions unanswered when comparing auto insurance quotes. Like buying a car, more than just the basics should be considered when purchasing insurance.

Call 1-877-334-7646 to speak with an insurance agent.