Auto Insurance Companies - Best and Worse

Selecting
an insurance company

People use
different criteria for choosing an auto insurer. Some base their decision
on the opinions of friends, some on marketing and advertising promotions,
and others simply on the cost of premiums.

Typically, new auto
insurance buyers tend to choose the lowest cost provider, assuming that
most providers are essentially the same. As they become more experienced,
and after having made a claim or two, they become more wise to other factors
that determine a good insurance company.

Eventually, most automotive
insurance buyers place the most importance on how companies treat them
after filing a claim. Low premiums become much less important if a company
won't pay when they should.

What's
the problem?

Many thousands of auto
insurance customers are happy with their insurers. A significant percentage
of those have been with the same insurance company for 15 years or more.
However, other customers don't find their companies very satisfactory.
The most frequent complaints that customers have with car insurance providers
are:

• Refused claims


• Slow adjustment
  process


• Unsatisfactory
  payout on claims



• Feel forced to
  use insurer's repair shop


• Poor repair quality


• High premiums


• Increased premium
  after accident


• Lack of personal
  attention or compassion


• Billing, policy,
  and other non-claim issues

Unfortunately, most
of these problems don't surface until after a claim has been filed, when
it's too late to find another company.

How
to choose the best car insurance company

There
are a number of ways you can go about choosing a good insurer.

Research
consumer opinions - Consumer Reports magazine frequently
surveys readers on auto insurance companies. The last survey results
were reported in the March 2006 issue. The survey measures overall customer
satisfaction and claim problems. Unfortunately, of 27 companies reported,
the satisfaction score difference between the best company and the worst
company was only 16 points out of 100. This is hardly enough of a difference
to make for a solid decision choice.

JD Power,
another well-known research firm, also conducts an annual survey of
auto insurance customers, although results are not published in a widely-distributed
report. However, it is not difficult to find result summaries on the
Internet. Be aware that some of the results you may find are old, outdated
reports.

Browse online
forums - Consumer forums and automotive discussion boards
often have sections in which car insurance is discussed. These sources
change frequently and the quality of the information can vary widely,
so don't use this as your only research source. Remember that people
who have problems are more likely to post comments than those who don't
have problems.

Ask repair
shop managers - Nobody knows about insurance companies any
better than the body shops that have to deal with them. Ask the owner
or administrative manager of the shop about which insurers are the best
to deal with - which are the least trouble when settling claims and
paying for proper repairs. We've seen repair shops in which ratings
were actually posted on the wall of the waiting room. Don't forget your
car dealer's body shop, if he has one.

Check state
government data - Most states have departments that handle
complaints against insurance companies. This may be the Attorney General's
office of consumer affairs or it may be the office of the Insurance
Commissioner. You can often find which companies have the best and worse
complaint rates on your state's website. Actually, it may be helpful
to look at other state's web sites as well. Just be aware that most
state sites are not well designed and it may be somewhat difficult to
quickly find the information you need.

Use broker
web sites - Insurance broker web sites are one of the best
and easiest ways to compare insurance companies online. Brokers work
with multiple insurance companies so that they can offer their customers
a variety of choices to meet their needs. Some of these broker sites
contain comparative information and ratings. We like NetQuote.com,
the nation's oldest and largest such company, as well as Insurance.com.


Or Kanetix
in Canada.

After
you choose a company

Many of
the differences between car insurance companies are hidden in the details
of their policies. Before you sign, make sure you read and understand
these details. If you have questions or concerns, get it resolved before
you sign. Later may be too late.

Additional
information about auto insurance can be found in the following articles:

Auto
Insurance for Beginners

Buying
Auto Insurance - Agent or Direct?

Car
Insurance and Leasing

Car
Insurance and Your Credit Score