How to Recognize Auto Insurance Leads to Pursue

Research auto insurance companies by (1) looking them up on third-party comparison sites, (2) reading consumer reviews, and (3) comparing quotes from multiple insurers.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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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 and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 15, 2021

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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.

Things to Remember...

  • Many people take the advice of others when pursuing auto insurance. This is something you may want to reconsider
  • Some ratings companies like A.M. Best or Standard and Poor’s have too many listings and it can take a long time to sift through the massive quantity
  • One of the benefits you want would be automatic rate reduction that some auto insurance providers offer as an option

Learning how to recognize auto insurance leads that you should pursue takes some effort. You must understand several aspects before acquiring your policy.

However, the first thing you should know is very critical. You should not rely on others. You must explore on your own.

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Many people take the advice of others when pursuing auto insurance. This is something you may want to reconsider. You can easily become overwhelmed and may even feel guilty when you make a different choice.

One car insurance policy may work for someone and be a nightmare for you. Everything is different. The make and model of your car, where you live, and your experience level with driving are not the same as someone else.

It is like sharing your personal history, which is not possible. This is how you need to look at car insurance. There are plenty of satisfied customers but they will not share your views 100 percent.

Your Choices are Personal

Only you know what you need and your individual expectations will dictate your choices, not someone’s opinion. This includes cute commercials and friendly agents.

Luckily, you have dozens of free resources available. Start with the state-based websites, like the Department of Insurance.

Depending on where you live, the name may be different. Some use the Division of Insurance while others have the Insurance Commission.

Regardless of the title, they exist for one purpose, to regulate auto insurance agencies. They are not biased and their information is factual.

You can review a list of all of the licensed agents and brokers in your community through these websites.

The number of companies may be quite large, which means you need to narrow your search a bit. The good news is you can use this same resource to accomplish your task.

For example, the California Department of Insurance has a section where you can complete a profile search.

Using this option, you can start your investigation. Look for the complaint history, location, and financial stability. It is best to rely on this information, rather than a rating company, as it is the most accurate and timely.

In addition, they do not receive their reports as quickly. Auto insurance companies must provide their data to the Department of Insurance immediately.

They must be kept informed of every process including their finances and rates. They can only implement changes upon approval.

If they try to make unauthorized changes, without the permission of the Department of Insurance they risk losing their license.

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Using Leads

Auto insurance leads are the first step towards finding a great policy; however, you still need to do more. You should already have a list and background information.

The car insurance industry uses specifics like geographical location and demographics to determine your rate. This means where you live influences their numbers.

However, they use many other factors and their calculations may differ slightly. Some may consider your driving history carries a higher risk. Others might choose your credit score as a risk factor.

This means you need to take a personal inventory. A report of your driving history is available from your local motor vehicle commission for a small fee.

You can obtain a copy of your credit report free of charge by going to Annual Credit With these two reports, you will have a good idea of how the auto insurance companies see you as a risk.

Clean up your credit. If you have points on your license, reduce them. This will help you receive a comparable car insurance rate. Next, refer to your list of car insurance agents you created.

One of the benefits you want would be automatic rate reduction that some auto insurance providers offer as an option.

If you qualify, your insurer should lower your premium each year. As long as you continue on a positive path, your rates should continue to drop. Within a few years, you may see a policy reduction as much as 20 percent.

Other Data Auto Insurance Providers Use

Auto insurance providers also use your claims and car accident histories. Your driving record may not contain this information because it will only detail accidents if you received a ticket or points.

Car insurance companies need to have an accurate assessment. They must know how to categorize you to determine risk. In an effort to build your profile, they turn to the experts.

There are companies that provide this data that work with car insurance claims adjusters.

When a customer submits a claim for damage repair, they log the occurrence. Over time, one customer may submit many while others may not.

The number of claims you submit carries certain consequences.

One of which is your level of risk. Most auto insurance providers quote higher premiums for people in this category.

Their assumption is your behavior is a contributing factor. If you are a safe driver, you are less likely to have a car accident.

Auto Insurance Carriers Monitor Your Status

In an effort to calculate the number of uninsured drivers, monitoring is necessary. This means your car insurance provider constantly checks your status. If your policy lapses due to non-payment, they will cancel your service.

However, they also forward this information because they have an obligation to the state where they issue policies.

The motor vehicle commission in your state receives this notification. You have a certain time before they step in with penalties. In most states, it is 30 days though others allow more or less.

If you are unable to obtain valid car insurance, your license is in danger of being suspended.

You will likely receive a suspension notice and compromise your vehicle’s registration. You cannot have a valid registration without car insurance.

Another step car insurance carriers must complete is verification. When you switch companies, they will follow up by asking for the name of your new company. This is completely legal and is not a violation of your consumer rights.

The state regulators require the car insurance companies to help by providing them with updates on a consistent basis.

It is for the benefit of all who obey the law. One of the reasons automobile insurance is so high nationwide is because of uninsured motorists.

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Auto Insurance Reform

To have a clear understanding of why car insurance providers are so competitive, you must reflect on state laws. The laws are there to protect consumers and their welfare. Car insurance companies diligently seek ways to profit.

However, they cannot do so without approval from the state. Therefore, this means every increase must have a justification.

Unfortunately, history shows many errors within the state legislature. For many years, customers suffered due to poor regulation in this area. Revolution is inevitable in the auto insurance industry and efforts for reform are abundant.

The proof is in the 15-year study provided by Consumer Watchdog. In 1988, the residents of California could no longer handle the rising costs of car insurance. Proposition 103 was their way of implementing change.

Proposition 103 forced car insurance agencies to adjust their unfair business practices. They were required to offer discounts based on the driving history of their customers. Each licensed agency complied.

Between 1988 and 2004, Californians received 20% discounts on annual premiums if their driving records were good.

Upon approval of this new legislature, California dropped in rank for having excessive car insurance rates. The state went from the second highest to number 21 in the nation.

The consumers also saved record amounts. On average, a 7 percent savings was recorded over the entire 15-year time period. Finally, customers received the rewards they deserved for good driving.

In 2006, the new regulations only reinforced the original plan. Also, now driving records have the heaviest impact on car insurance prices.

Previously, the location or ZIP code was one of the main factors in addition to age, gender, and marital status. It seems the changes implemented with car insurance reform worked to lower costs to consumers.

The Future of Auto Insurance

Today, the impact seems stalled; at least for the moment. Customers are well educated and have more knowledge of the car insurance game.

Most play very well and instead of sticking with their current carrier out of loyalty, they are looking for a better deal. This means they will exercise their right to take their business to a competitor.

However, there are drawbacks to this type of thinking. Car insurance companies are finding new ways to reward long-term customers.

After years of losses due to failed retention tactics, they finally seem to understand now what their customers want.

A customer who feels appreciated is less likely to desert them. This has many auto insurance providers looking to the average consumer for help. The cockiness is gone, replaced by humility.

The simple fact remains, the customer is always right and in order for their business to succeed and grow, they need you.

Sure, some still look for quick gimmicks as a way to lure you in; however, they never last. They appeal to the percentage of customers who will always shop by price.

The smart and sophisticated car insurance company will offer more than a trend by making sure their customers come first.

Great car insurance is yours quickly when you enter your ZIP in our FREE quote tool on this page!

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