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.

Full Bio →

Written by

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...

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 22, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

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...

  • When you are buying auto insurance, it is helpful to compare auto insurance companies before buying a policy for coverage
  • The lower an insurance company’s financial reserves, the more difficulty they will have paying even the most common auto insurance claims if a large number of policyholders file similar claims, especially during disasters or other catastrophic events
  • A number of rating companies regularly evaluate the financial strength and stability of insurance companies
  • Evaluate the financial strength and consumer satisfaction of potential insurance companies to ensure that you buy services from a company that will provide you with fast, efficient services if you need to file a claim

When you are buying auto insurance, it is helpful to compare auto insurance companies before buying a policy for coverage.

One way to compare insurance companies is to visit online rating sites, which provide a wide array of information regarding insurance companies.

In order to understand the value of rating websites, you need to have a good understanding of what is being rated and how the information that is relevant to purchasing car insurance.

Enter your ZIP code into our FREE comparison tool to start looking for rates!

How does a company’s financial stability help me?

One aspect of evaluating auto insurance is knowing how financially stable a company is and its available financial resources. Insurance companies are required to maintain good financial standing and to have large amounts of financial reserves for claims filed by policyholders.

The lower an insurance company’s financial reserves, the more difficulty they will have paying even the most common auto insurance claims if a large number of policy holders file similar claims, especially during disasters or other catastrophic events.

A number of companies regularly evaluate the financial strength and stability of insurance companies. You can access this information from AM Best, Fitch, and Standard and Poor’s via their company websites.

All of these companies issue rating grades, indicating financial strength. Ratings are in the form of a letter grade, with A++ being the highest rate possible.

Insurance companies receiving grades in the “A” range are considered excellent companies. Rates are based on credit rating, financial reserves, corporate reporting, stock value, and other financial elements.

Use these financial grades to find a cheap safe auto insurance company online.

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

Another aspect to evaluate when considering car insurance companies is consumer satisfaction rates. JD Powers and Associates conducts annual surveys regarding auto insurance companies. Their rating reports are available online through their website.

Consumer satisfaction surveys by JD Powers evaluate customer satisfaction with customer services, claims processing, rates, and overall insurance company performance.

Another source of consumer satisfaction is Consumer Reports. Consumer Reports regularly reviews car insurance companies and evaluates several different aspects of companies.

In addition to customer services, rates, and claims processing, Consumer Reports also evaluates corporate performance and insurance services offered.

Free Auto Insurance Comparison

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

 Secured with SHA-256 Encryption

Consumer Complaints

Another helpful source for information regarding auto insurance companies in your state Department of Consumer Affairs website. All states have web pages dedicated to the insurance industry in their state.

These pages provide information on insurance companies that are licensed to legally operate in your state.

Additionally, you can find information regarding any complaints that have been issued against an insurance company. You can also find information regarding licenses for insurance brokers and agents and any complaints that have been filed against them.

You can also find out helpful information regarding car insurance companies from the Better Business Bureau. The Better Business Bureau will make an effort to mediate consumer complaints and problems with insurance companies to find a resolution.

The BBB also maintains reports regarding the number and type of complaints lodged against insurance companies. You can find this information on the BBB website.

Insurance Rating Websites

You can also find a number of insurance rating websites that provide excellent helpful information regarding all types of insurance companies, including auto insurance providers.

Rating websites frequently provide the opportunity for consumers to provide personal reviews of their experiences and viewpoints regarding insurance companies.

Additionally, rating websites also list auto insurance providers that are considered highly rated and trusted companies. Rating websites also provide detailed information about car insurance companies, including insurance products available and financial services provided.

Auto insurance comparison websites are also an excellent source for information regarding auto insurance company ratings.

In addition to providing ratings from companies such as AM Best and Standard and Poor’s, many insurance information websites also provide information regarding the different types of insurance, state-mandated car insurance levels, and the ability to request car insurance quotes.

Free Auto Insurance Comparison

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

 Secured with SHA-256 Encryption

Comparing Auto Insurance Companies

When comparing car insurance companies, it is important to consider customer service availability and the ease of filing claims with any auto insurance company. Look for companies that have 24-hour customer service, both via the internet and telephone.

Also, look for auto insurance companies that have automated claims services, which will allow you to file a claim online or on the telephone. Additionally, your body shop will be able to process a claim directly with the company without the need for an adjuster to evaluate your vehicle.

In addition to evaluating what car insurance options are available, also consider what benefits are available for policyholders.

For example, when you report a claim, can you also arrange a rental car through the insurance company and do they provide transportation to the rental company if you need it. Also, ask if they provide services such as roadside assistance or travel concierge services.

When you receive car insurance quotes, it is important to compare more than just rates.

You should also make sure that you are comparing the same kind of insurance, the same level of coverage and the same deductible levels for an accurate comparison.

Evaluate the financial strength and consumer satisfaction of potential insurance companies to ensure that you buy services from a company that will provide you with fast, efficient services if you need to file a claim.

Our FREE car insurance comparison tool can help you compare rates. Enter your zip code to get started!