Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Aug 28, 2020

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Here's what you need to know...

  • Auto insurance can be one of the most important forms of financial protection you purchase
  • Financial stability is one of the keys to evaluating whether or not to use a specific insurance company
  • Consumer satisfaction is another area you can use to compare cheap auto insurance options and companies when you are buying insurance

Auto insurance can be one of the most important forms of financial protection you purchase. As a result, it is important that you make an informed decision when choosing the best auto insurance coverage for your needs.

There are many ways you can compare auto insurance companies, including based on financial stability, consumer satisfaction, customer service and premium rates.

Enter your zip code into our FREE auto insurance comparison tool to compare quotes now!

Financial Stability

Financial stability is one of the keys to evaluating whether or not to use a specific insurance company. Affordable auto insurance companies are expected to keep financial reserves to allow them to pay claims.

In cases of extreme situations, you may wonder are earthquakes  covered by insurance? In these severe cases, an insurance company may be hit with thousands of claims at once, so it is important that they have financial reserves available to pay multiple claims to their customers efficiently and quickly.

There are several companies that specialize in rating insurance companies, particularly their financial stability. One of the best-known is AM Best.

The AM Best auto insurance rate companies of all sizes and give them a letter grade rating based on their credit, financial reserves, and other information.

Other companies that provide these kinds of rating services include Standard & Poor’s and Fitch. You can find financial rating information on each of these company’s websites.

Free Auto Insurance Comparison

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Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Consumer Satisfaction

Consumer satisfaction is another area you can use to compare cheap auto insurance options and companies when you are buying insurance. One well-known consumer satisfaction company is JD Powers and Associates.

JD Powers conducts annual consumer satisfaction surveys that include almost all car insurance companies.

Ratings are based on consumer surveys that rate customer happiness with policy premium rates, ease of claims processing, and level of insurance company customer service.

You can find JD Powers and Associates consumer satisfaction rate information on their website.

Consumer Reports is another company that conducts similar annual consumer satisfaction surveys for insurance companies. Consumer Reports information is available through their print magazine and to online members of the organization.

The Better Business Bureau also maintains information online regarding complaints against insurance companies. In many cases, complaints are filed if an insurance company refuses to pay a claim and a customer is left unsatisfied.

The BBB will attempt to mediate a resolution to the problem, but they also note problems that cannot be resolved.

Customer Service

Customer service is another area to use for comparison for auto insurance companies. A quality car insurance company will have customer service agents available around the clock.

If you have an accident or an emergency, it may not happen during business hours.

Beware of insurance companies that only communicate with you via email or during business office hours.

Other facets of customer service to consider include what types of services they have available for you immediately over the telephone and how helpful their customer service representatives are when you call.

If you have an accident, you want a customer service agent who will help you with everything you need, including arranging a rental car, towing service or temporary transportation.

Premium Rates

Probably the most frequently used aspect of comparison when it comes to car insurance is premium rate quotes. When you are comparing car insurance premium rates, it is important that you compare the type of car insurance and the level of insurance for a fair comparison.

Additionally, keep in mind that deductible levels can also have a significant impact on premium rates, so those levels should also be similar or the same for rate comparisons.

You can get multiple car insurance quotes by going to an insurance comparison website. An insurance comparison website allows you to enter your information one time and receive car insurance rate quotes within a few minutes.

Another source for auto insurance rate quote comparisons is from independent insurance brokers. Independent insurance brokers usually represent several different insurance companies, so they can provide you with rate information from several different companies.

Additionally, they can also talk to you about your specific insurance needs and suggest the kind of insurance you need for the best protection. They may also suggest discounts or other ways to reduce or lower your auto insurance premium rates.

Insurance company websites also provide you with information about other types of insurance or financial products the company may offer.

It is a good idea to use as much information as you can gather about an insurance company before you make a decision.

Although it can be tempting to grab a policy from the cheapest rate you are quoted, it is not always the wisest thing to do, since you may be disappointed or even hurt financially if the insurance company is not financially stable or has poor customer service.

The best approach is to compare at least three auto insurance companies before making a purchasing choice.

Enter your zip code into our FREE auto insurance comparison tool below to find the best rates available to you before you purchase!