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Different insurance companies may assess
the exact same risk somewhat differently.
An insurance company sets rates partly on
its own claims loss experience and partly
on the experience of the entire auto insurance
industry. Some companies may have far better
experience insuring a certain type of driver
than the industry overall. That means you
can save money by comparing companies and
coverages.
Keep thorough notes on the types and
amounts of insurance you are quoted. Some
companies return a dividend at the end of
the year if their claims experience has
been favorable. Such dividends, in effect,
lower the price of their insurance,
but you may want to check on the company’s
record of paying dividends over the past
several years. Dividends cannot be guaranteed.
You should not select an insurance
company based on price alone. You want
to feel confident that, if you are
involved in an auto accident, your
insurance company will settle the claim
promptly and fairly. Consumer publications,
A.M. Best reports, and your state insurance
department can provide you with information
on the quality of service a company provides,
its complaint record and its financial
stability. Check with your state insurance
department to see if they have done a premium survey.
Another consideration when selecting
an insurance company is whether or not you
prefer a local agent or feel comfortable
transacting business over the phone or
electronically. You should also consider
what payment plans are available.
There are many insurance companies that offer you the
ability to conveniently and securely manage your insurance needs online.
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