Are you in the process of shopping for auto insurance? If you are newly licensed, moving to a new state, or simply want to find a more affordable insurance policy, you must consider more than just price when doing your quote comparisons.
While auto insurance is a requirement, it is also an important form of protection that will keep you and your assets safe while you are on the road. We know that consumers should take time to do their research on insurance companies and policies before they make any type of investment.
Here are four questions every consumer should ask before submitting an application or committing to specific terms:
Is Your Company Financially Stable?
One of the most overlooked factors that you need to consider when buying insurance from any insurance company is financial stability. All too often, consumers consider the premiums they will pay for coverage instead of considering whether or not the insurer has the money necessary to cover claims when they are filed.
Insurance companies must collect adequate premiums based on risk to cover potential claims that will be filed throughout the year. If they low-ball premiums, the insurance company may have difficulty paying for claims and may attempt to deny or delay claims to reduce their expenses. Ask the insurance agent how the company is rated by consumer rating agencies, and check their financial ratings yourself.
What Methods of Contact are Available for Customers?
More and more auto insurance companies are developing advanced websites for their customers. These websites give customers access to their policies, and may even have technologies that will allow them to make changes without speaking to an agent or phone representative.
You must consider how you prefer to do business and which method of contact you prefer to use on a regular basis. If you like service in-person, make sure the company has local offices. If you want to call any time of the day, make sure the company has call centers that are open 24 hours a day, 7 days a week.
Does the Company Offer Other Lines of Insurance that Will Qualify you for a Discount?
Just because you are shopping for auto insurance does not mean that you should search for a company who only offers this line of insurance. It is much more convenient for consumers to purchase auto insurance from a company that also offers property, life, health, and disability insurance. Not only is managing your insurance portfolio easier, you will also receive sizable discounts that will save you money.
How are Claims Processed?
You buy insurance hoping you will never need to use it. While this is true, if you are involved in an accident, you want to know that claims representatives will help you get your vehicle repaired as quickly as possible.
Ask about the claims processing procedure and whether or not you are required to take your vehicle to a shop affiliated with the company. You may also want to read unbiased reviews online about experiences other customers have had with filing claims.
Take time to do your research when you are buying a car insurance policy. While it does take time to do research, the time and frustration you will save in the future will make the task worthwhile. Use this list of questions, do your homework, and purchase a policy that provides you with all of the protection that you need.
See Also:
- 2 Types of Mortgage Insurance
- Term vs. Whole Life Insurance – What Should You Choose?
- How To Develop Winning Money Management Skills
- Annuities for Retirement
- Choosing The Best Bank
Recommended Books:
- Insurance for Dummies
- The Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family’s Financial Health By Dave Ramsey
- More Books by Dave Ramsey
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