Auto Insurance - Quality over Price

Nowadays most consumers are going for the cheapest price without even considering quality. Of course price definitely is one of the most important factors; however, one should not overlook the importance of quality over price. A good balance between the two should be considered.

A common myth or mindset is that when the quality of a company is better, the price would be higher. This is more of an assumption than a fact. The truth is that there are many quality insurers offering excellent and competitive rates while still being admitted carriers (where policyholders are protected by a state’s guarantee fund) which most likely will lead to the deserved protection in case of an accident.

How does one determine quality? The quality of a carrier can be determined in a couple of ways. Most states have a Department of Insurance holding complaint records on file which can be publicly accessed. These records are a great indication of quality because, an insurer with many complaints will indicate poor customer service. Find out if a carrier is admitted by your state. This can give you a feeling of security because admitted carriers have financial backing in case of bankruptcy.

AM Best is a company issuing letter grades to carrier’s financial strength. Financial strength is a good indicator of quality since one is less likely to experience an under funded claims and service representation. Ask your friends if they’ve had any experience with a certain company. This perhaps is among the best ways of determining if one will be satisfied with an insurer’s services.

One can usually get a feel for customer service if they were to contact the service phone number and ask any kind of question. Notate the hold times and the assistance of the representative handling the call.

The internet is a useful tool, if you punch in a company’s name, you may find comments and feedback on their claims and services which can be useful to make a decision.

Of course, price is a factor to consider as well. The best way of finding a competitive rate is to compare rates from various carriers. This will give you an idea of what rates are reasonable and will point out those who are higher than others.