How to Choose an Auto Insurance Policy in 2024
When deciding how to choose an auto insurance policy, consider factors such as price, coverage needs, and the insurance company you choose. Lower your auto insurance rates by up to 20% when you compare multiple companies by their quotes, customer service ratings, and financial stability.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
UPDATED: Feb 15, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 15, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Price is a major concern for most people searching for auto insurance
- Customer service is also an important consideration
- Check out independent rating agency reviews before deciding
When choosing an auto insurance company, the goal is to see past the gimmicks to the real information that will help you make this important decision. By doing a little research, and knowing what to look for, you’ll be able to find a company you can feel confident about.
If you watch any television or surf the Internet, you probably see ads for auto insurance companies every day. Some of them use cute, talking animals or perky sales girls. Some rely on catchy, rhyming jingles. Still, others try to gain your business through a deep-voiced, trustworthy-looking actor.
To compare online auto insurance rates based on fact and figures, not just cute mascots, enter your ZIP code above.
How to Choose an Auto Insurance Policy: Things to Consider
When shopping for coverage, affordability, good customer service, and claims handling are important considerations. Generally, companies such as State Farm, USAA, and Geico are excellent in all three categories, but you should still shop around to find your best company.
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You should also ensure you carry some of the most important car insurance coverages, including full coverage and liability auto insurance.
Below, we’ll overview all the factors to consider when deciding on a car insurance policy.
Price
Price is most likely going to be one of your main concerns when purchasing auto insurance. Depending on the type of vehicle you have, your age, and several other factors that affect auto insurance rates, you may end up spending quite a bit on auto coverage.
While insurers usually use the same calculation factors, rates can vary greatly from company to company.Laura D. Adams Insurance & Finance Analyst
In some states, the Department of Insurance publishes a guide that lists average rates for each part of the state. Use this guide to get an idea of how much auto insurance costs where you live.
Also, check insurance company websites for information. When you have the list of potential insurers narrowed down to three or four, call for detailed quotes specific to you and your situation.
Licensing
It may surprise you to know that not all the best auto insurance companies are licensed in every state.
Although you may see a television ad for a company, it may be because the ad is broadcast on a cable channel that reaches a wider audience than a local network affiliate.
When researching rates, check the company websites for a list of states where they are licensed to make sure their services are available to you. You may also be able to get this information from your state’s Department of Insurance. You can also call the company and ask them whether they’re licensed to issue policies in your state.
Customer Service
This can be tough to gauge before you actually become a policyholder. You can’t know how your insurance company will perform in the event of an accident before it happens.
There are a couple of ways to determine whether a company provides good customer service. First, check with the Better Business Bureau to see if any of the insurance companies licensed in your state have complaints against them. It’s not uncommon for any business to have a few complaints, but if the number is high and the complaints all seem to be about the same issues, that’s a red flag.
Also, talk to family members, friends, neighbors, and coworkers. Ask them which insurance companies they’re with and whether they’ve been satisfied with the service they’ve received.
Finally, when you do call for an auto insurance quote, take note of whether the customer service representative is polite, helpful, and knowledgeable. That phone call can be an indication of what kind of service to expect as an auto insurance policyholder.
Financial Stability
The reason you buy auto insurance is to be reimbursed for damage to your vehicle, medical expenses, and other potential financial losses that can result from an accident.
No matter how broad the coverage of your policy, it won’t do you any good if the company you choose isn’t solvent. Check the financial news and use ratings established by independent rating agencies to determine which companies are the most financially stable.
Coverage Options
You should also consider what coverages you need for yourself and how much they’ll cost. For example, full coverage auto insurance covers your vehicle and the other party’s vehicle, but it costs more than liability-only coverage. However, liability-only doesn’t cover your vehicle, so it offers little protection.
Consider your needs and budget while shopping for different types of auto insurance coverage.
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More About What to Look for When Shopping for Car Insurance Coverage
After you’ve gathered all the data, the statistics, and the feedback from raters and people you trust, the final question to ask is, do you feel comfortable with the company you’ve chosen?
If you talked to an agent, either on the phone or in person, did you get a good feeling from them? Were they direct and honest? Did they answer your questions and provide you with the information you needed?
Accidents don’t just happen during business hours. Will the company be there for you anytime you need them?
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— AutoInsurance.org (@AutoInsurance) April 10, 2023
If you can answer yes to all of these questions, you’ve found the insurance company that’s right for you. If you haven’t found one yet, keep looking. Enter your ZIP code into our free rates tool below to compare online auto insurance quotes now.
Frequently Asked Questions
What factors should I consider when choosing an auto insurance policy?
When choosing an auto insurance policy, it’s important to consider the following six factors such as:
- Auto insurance types
- Deductible amounts
- Premium costs
- Customer service reputation
- Financial stability of the insurance company
- Any additional benefits or discounts offered
What types of coverage options are available in auto insurance policies?
Auto insurance policies often include a variety of coverage options; these are the five most common:
- Liability auto insurance covers damages you cause to others.
- Collision auto insurance covers damages to your vehicle in an accident.
- Comprehensive auto insurance covers damages from non-collision incidents like theft or natural disasters.
- Personal injury protection (PIP) or medical payments coverage pays for medical expenses for you and your passengers.
- Uninsured/underinsured motorist coverage protects against accidents with drivers who have insufficient or no insurance.
Which type policy is best for car insurance?
You should always carry liability insurance when you drive. It’s also important to consider full coverage to protect your own assets too.
How do deductible amounts affect auto insurance policies?
An auto insurance deductible is the amount you’re responsible for paying out of pocket before your insurance coverage kicks in. Higher deductibles generally result in lower premium costs, but it’s important to choose a deductible amount that you can comfortably afford in case of an accident or damage to your vehicle.
How can I determine the premium costs for auto insurance policies?
Premium costs for auto insurance policies depend on various factors, including your driving history, age, location, type of vehicle, coverage limits, and deductibles. Insurance companies use these factors to assess the risk associated with insuring you and provide you with a premium quote. You can obtain quotes from different insurance companies to compare and find the best price.
How can I assess the customer service reputation of an insurance company?
To assess the customer service reputation of an insurance company, you can research online reviews and ratings from reputable sources. Look for feedback on the company’s claims handling process, responsiveness to customer inquiries, and overall customer satisfaction. Additionally, you can ask for recommendations from friends, family, or colleagues who have had experiences with the insurance company.
Do I need uninsured motorist coverage?
Not all states require uninsured motorist coverage, but it’s an excellent coverage to have for protection against uninsured drivers.
What car insurance is most basic?
Liability car insurance is the most basic form of auto insurance, since it only covers damages to others in accidents you cause.
Is $300 a lot for car insurance rates?
Yes, a $300 monthly car insurance premium is high. Consider shopping around and comparing quotes for lower rates.
Which type of car insurance is cheapest?
Liability coverage is the cheapest form of car insurance because it doesn’t cover your damages.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.