How do I avoid the worst rated auto insurance companies?

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Things to remember...
  • Proper vehicle coverage will help protect the driver as well as the other parties involved in the case of an auto accident
  • There are many rating companies that provide free information about auto insurance companies and the reliability and financial stability of businesses
  • One of the best things a buyer can do is shop around and evaluate more than one insurance company

Buying auto insurance is something that should be done by anyone who owns and drives a car. Proper vehicle coverage will help protect the driver as well as the other parties involved in the case of an auto accident or if there is some other damage that a person’s vehicle incurs.

As buyers shop around for vehicle protection, it’s important for them to know that in order to get cheap auto insurance quotes, they will have to provide insurance companies with information that will help companies evaluate their risk level.

There are some insurance providers that have developed good reputations and others that have a less reliable one. To help avoid the bad ones, there are several things a buyer should do before making a final decision to purchase.

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Check with Rating Companies

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There are many rating companies that provide free information about auto insurance companies and the reliability and financial stability of businesses.

Different companies use different rating methods, so it’s important to check with few in order to get a clear view of a business’ overall standing.

This is especially helpful when dealing with small companies that provide auto insurance at less expensive rates.

It’s important for buyers to find out if these small companies have the financial power to pay out claims in a timely manner.

Although there are many agencies that provide reliable rating information, there are some that are more popular than others that consumers often turn to.

JD Power and Associates

This agency has a 5-point system for how the ranking of auto insurance companies is decided. They evaluate five different categories on a scale of 1 to 5 with a 5 rating being the best.

The categories include:

  • policy offerings and upgrades
  • contacting the insurer
  • overall satisfaction
  • billing and payment
  • costs

Anyone can view this information by visiting the JD Power and Associates website and clicking on “insurance” and then “auto insurance”.

A.M. Best

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Unlike J.D. Power and Associates, A.M. Best evaluates insurance companies on just their financial stability.

A company that has excellent financial standing is given the highest rating of an A++.

Other ratings are an A+ (superior) or an A or A- (excellent). Most of the larger companies receive a good rating of a B++.

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Standard and Poors

This agency has a rating system that is very similar to the one A.M. Best uses. They rate a company’s financial integrity and their ability to pay claims.

Standard and Poor’s uses a grading system that ranks the best score at an AAA down to the lowest score of a D.

A quick visit to their site will give anyone the opportunity to view company ratings.

Review Insurer Complaint Ratios

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A good way to avoid bad insurance companies is to see how current and previous customers feel about them.

For anyone shopping for coverage, it’s a good idea to visit The National Association of Insurance Commissioner‘s website in order to review the complaint ratios of auto insurance providers.

One of the best things a buyer can do is shop around and evaluate more than one insurance company. Many people fail to do this particularly when their old policy expires. Auto insurance buyers have a tendency to automatically renew vehicle coverage with a company without

Auto insurance buyers have a tendency to automatically renew vehicle coverage with a company without shopping around to see if they can get a better deal with another provider.

Shopping around around will allow one to review prices, coverage and especially the terms and conditions of other providers to see how they measure up against each other.

Looking over the terms and conditions will help to weed out companies that operate by policies that aren’t favorable to the buyer.

Some people don’t like to read the fine print, but company policy can mean the difference in a positive experience with an insurance company versus a negative one.

With all of the many resources available to consumers, conducting a quick investigation is not hard to do.

If purchasers remember to check with rating companies, review complaints and shop around to make comparisons, they should be able to find information that will help them steer clear of unreliable auto insurance providers.

Enter your zip code into our FREE auto insurance comparison tool to review rates available for you now!

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