The Total Coverage Blog
If you’re looking for advice on comparing car insurance quotes, you’ve come to the right place. When searching for the best policy, you should consider what is important to you and your situation. Surely price is high on your list. But have you considered your level of coverage? Or how about the customer service aspect of an auto policy?
It’s also important to understand the role an insurance agency can play when shopping for auto insurance. Most agencies work with a number of insurance carriers and will shop with those carriers for you. Not only will an agent recommend a policy that is a good fit for you, but using an agency’s services won’t cost you a dime.
However, whether you choose to use an agency or shop on your own, it’s still good to know the ins and outs of comparing quotes. Let’s get into what you should consider when comparing auto insurance quotes.
Pricing an auto policy isn’t a cut and dry process. When comparing auto insurance quotes, one company’s underwriting process may vary from another’s. If you’re unfamiliar with the term underwriting, simply put: Underwriting is a process where an organization (the insurance carrier) takes on financial risk (insuring your car) for a fee (the premium you pay).
Therefore, when you compare one auto insurance quote to another, keep a close eye on the coverage you are getting. If you find one policy to be priced significantly lower than another, double check that the coverages are comparable. A lower priced policy may leave you short on coverage if you were to experience a claim.
Side Note: Your auto insurance rate will often depend on factors such as:
Handling an auto insurance claim can be stressful. When comparing auto insurance quotes, it will likely be worth your while to shop with companies that have a great reputation and solid customer service.
You can check out lists like Forbes’ America’s Best Insurance Companies list to get a better idea as to where certain companies rank. For instance, Erie Insurance landed in the top 2% of insurance companies, in part because of their excellent customer service.
Additionally, Google reviews and other online ratings will help give you a good idea where an insurance company stands. You can also check the carrier’s financial stability to make sure they are able to pay out claims if you need to file one.
Quick tip: You can ask your local body shops which insurance providers are the best to work with to give you a little more insight.
Depending on your needs, paying a little extra for an auto policy from a company known for its customer service may be worth it to you.
Also affecting the price of an auto policy: Discounts and deductibles.
An insurance company will typically reward you with a discount for having multiple policies with them. If you already have home or life policies with a company, it’s a smart move to shop for an auto quote with them as well. Some multi-policy discounts can be up to 20%! Other discounts may be available. For example:
A deductible will also affect the pricing. A higher deductible means a lower premium, while a lower deductible means a higher premium. Set the deductible based on your needs and ensure it’s set the same for each quote.
Finally, you are ready to compare pricing between your auto insurance quotes.
While price should not be the only factor you consider, it is important to make sure that you are getting a good deal. Make sure to compare prices for the same coverage options, deductibles, and policy term (length of time in force) to get an accurate comparison. Just because one policy is cheaper doesn’t mean it’s always the best choice for you.
By taking all of this into consideration when comparing car insurance quotes, you will be able to land on a policy that is fit for you and your budget.
If you need help, have questions, or are looking for auto insurance quotes, reach out to us.