How to Shop for Car Insurance

Thursday

You have or about to have acquired the second most expensive necessity of a life - a vehicle. You need to make sure that you are protected in case something drastic and unforeseen occurs. This video will help you pin down the details
	How to Shop for Car Insurance Shopping for car insurance can be a big headache, but you don't want to pay too much and you definitely want an insurance company that will pay up after an accident.  Here's how to find an affordable, reliable policy.

First, figure out how much insurance is required in your state. You can find this out by calling the DMV or checking its website. Also, take a look at our article entitled How Much Insurance Do You Really Need? Keep in mind that auto insurance protects your assets. Take a hard look at your financial situation. If your wealth exceeds the minimum liability limits, you need to buy more coverage. But if you're living from paycheck to paycheck, don't pad the insurance company's pocketbook. Also consider your driving habits. If you have a long commute, or live in a congested area, get more collision and comprehensive coverage. After you've decided what to buy, you're ready to use the web. Start with the insurance information section on the Edmunds.com website. Besides providing great information about auto insurance, the section contains links to high quality insurance providers like Progressive, Esurance and Geico; you can get a free, individualized quote using our web links or by calling the companies' toll free numbers. Another option is to visit online quote sites like InsWeb.com, InsureOne.com and YouDecide.com. Type in your information and you'll get a list of quotes from several companies. Each form takes about 15 minutes to complete. You'll speed up the process if you have your current insurance policy, driver's license and vehicle registration close at hand. Not all companies will provide instant quotes. Some will contact you by email, others will put you in touch with a local agent. After a little web research you may come across insurance providers that aren't included on the Edmunds.com website or the online quote sites. Most companies have their own websites and many will deliver quotes instantaneously. While you're researching insurance companies, take notes on a sheet of paper divided into categories. Jot down the following information: * Annual and monthly rates for the different types of coverage. (Use the same coverage limits at every website so that you can make apples-to-apples comparisons.) * The insurance companies toll-free number for hard to answer questions. * The company's payment policy. (You'll want to know when your premium is due and what will happen if you're late with a payment.) * Discounts that you are eligible for. * The company's consumer complaint ratio from your state's Department of Insurance website. * And finally, the insurance company's A.M. Best and Standard & Poor's ratings. So what's a consumer complaint ratio or an A.M. Best rating... well, it's not widely publicized, but your state and every state has a Department of Insurance. Most publish consumer complaint ratios on their websites. Each ratio tells you how many complaints an insurance company receives per 1,000 claims. So what's a consumer complaint ratio or an A.M. Best rating? Well, it's not widely publicized, but your state and every state has a Department of Insurance. Most publish consumer complaint ratios on their websites. Each ratio tells you how many complaints an insurance company receives per 1,000 claims. If an insurance company has lots of complaints, cross it off your list, no matter how good the price sounds. You can find a link to this information in our How to Shop for Insurance article. What about the A.M Best and Standard & Poor's financial strength ratings? These measure an insurance company's ability to pay out a claim. Consider only those companies with at least a B+ A.M Best rating or a BBB Standard & Poor's rating. Most insurance companies disclose these ratings on their websites. If not, Standard & Poor's and A.M. Best have their own sites.

Once you've exhausted your online options, it's time to work the phones. Contact any companies that didn't provide online quotes. When you get a quote over the phone, be sure to confirm the price. Ask the customer service rep to fax or email the quote to you as a record.

Even though companies like Progressive and Esurance will sell insurance directly to you on the web or over the phone, you might consider working with an insurance agent before making a final decision. There are two kinds of agents: Captive agents represent only one insurance company. Independent agents, or brokers, on the other hand, represent several insurance companies. Progressive Insurance is sold through independent agents. Working with an insurance agent can really pay off if you have an accident. Because the agent relies on your business, he wants to keep you happy during the claims process. Further, independent agents can look at your personal situation and point you towards the best policy. And if you want to switch companies, you don't have to leave your agent. When you have a claim, you want to make sure your that car is repaired with original equipment manufacturer's parts (OEM) rather than cheaper aftermarket parts. Since some insurance companies will push the use of aftermarket parts, contact a local body shop to find out which companies the manager would recommend. So you've done your research and you've decided on an insurance company. But before you sign, read the policy. Be on the lookout for any language that would remove your right to sue in the event of a dispute with the insurance company or require the use of aftermarket parts during body repair. Better to walk out now than fight the insurance company later. Once you've locked in your new policy, congratulate yourself! You've purchased reliable auto insurance and put a few extra dollars in your wallet!!