Cheapest Car Insurance Company

The cheapest car insurance company may not always provide you with the best service. As with so many other things in life, you do get what you pay for when it comes to insurance.

Policies that offer drastically low rates may also specialize in denying claims, and that’s not what you want. While it’s important to save on your premiums, you also want a company that will support you when necessary and pay claims when warranted.

Use the FREE comparison tool at the top of this page by entering your ZIP code into the box.

Comparison sites can help you find the lowest rates, but here are some other features you should consider looking at.

Visit a Ratings Website

The first step in finding a new insurance company is getting quotes that you like, but the second step involves a visit to a ratings website such as JD Power to review their auto insurance ratings.

This site breaks down the nation into different regions, and there are different award winners for each area. Companies are rated based on customer reviews and JD Powers own research.

The agency looks at the following areas:

• Overall customer satisfaction
• Policy offerings
• Price
• Billing and payment options
• Interaction with representatives
• Claim process handling

Companies can earn up to five stars in each area. You may assume that the nation brands rate the highest, but this isn’t always the case. Some of the highest rated companies with JD Power are the smaller insurance agencies that offer service only in one region.

This makes it more important to do your own comparison shopping rather than relying solely on the advertising you see on television.

Another option is to visit this site first and take note of the companies that offer the highest level of service. You can then focus your comparison shopping on those top companies in your area. This is one of the best ways to ensure that you’ll find the premiums you can afford along with service that suits your needs.

Problems You may Avoid

The National Association of Insurance Commissioners has conducted studies into consumer complaints. They found that 21% of complaints were related to claims being delayed, and another 16% were related to the complete denial of claims.

Another 10% sought assistance because they felt that the claim offers were unsatisfactory, and nearly 5% filed complaints after companies refused to respond to a claim at all. There is legal recourse available for consumers who feel that the company is not upholding their end of a contract, but a drawn out legal battle is costly and time-consuming.

It’s far better to avoid these problems to begin with by choosing a company with a solid reputation and great ratings. While this is no guarantee, it will minimize your chances of having problems when you need support from your company.

Other Resources to Consider

You can also find more information by doing a little independent research of your own. If the company you’re considering is a member of the Better Business Bureau, then you can visit the BBB to review complaints.

In addition to learning more about filed complaints, you’ll also see if they were resolved and what the final result was. You can also visit the insurance commission for your state to see if there have been complaints file against the company.

You cannot expect a company to have a perfect track record, but you should not find a large amount of open and unsatisfied complaints with either agency.

Go with Better Coverage

Most states have financial responsibility laws where drivers must either carry minimum insurance or prove that they have the means to cover damages in an accident. Buying the minimum insurance is typically the most affordable choice, but it doesn’t provide you with the protection you really need.

The fact is that insurance is as much for your own well-being as it is to protect other people should you cause an accident. In many states, you can held personally responsible for the difference between the actual damages in an accident and your insurance limits.

A recent study from the Insurance Research Council shows that more people injured in auto accidents are now hiring attorneys. In 2007, it was estimated that 31% of people harmed in a car crash called on the services of a lawyer, but that rose to 36%  in 2012.

If you’re sued by another driver, your insurance company is required to pay for the attorney as part of your plan. There is no limit to how much they must pay to provide you with this service.

However, they’re losses to the plaintiff are limited by your policy coverage amounts. Suppose that you have property damage liability of $10,000 and another $15,000 for medical payments.

If you’re involved in a lawsuit and the total damages are $150,000, your insurance company is only required to pay the $25,000 that you’re insured for. You can be held liable for the balance of $125,000 yourself, so it’s worth it to bump up your liability coverage.

Car Insurance is Becoming More Affordable

It’s also important to note that car insurance is becoming more affordable across all income levels. The Insurance Research Council looked at the ratio of auto insurance expenditures to income to determine that rates have improved in all 50 states and the District of Columbia since the turn of the century.

If you’ve been with the same company since the 1990's, you may find that rates with competitors are more attractive than you thought. It’s worth taking the time to ask for a few quotes to see if you can lower this monthly expense. The process won’t take long with tools like comparison sites, and you may enjoy long-term savings as a result.

Ways to Save

In addition to shopping around for better prices, you can also save by making some smart changes to your policy. Higher deductibles lead to lower premiums, and there are many discounts offered to help you save.

Talk to your agent to ensure that you’re getting credit for your good driving record, safety features, multiple cars, or good grades. If you use online banking, you might even get a discount for letting the company automatically withdraw the payment from your account.

If you’re driving an older car that’s paid for, it might be worth it to drop comprehensive coverage on the vehicle.

Before dropping coverage on a car or raising your deductible, make sure that you have the funds in the bank to cover yourself in an accident. You should have enough money to pay for your deductible if you have to file a claim, and you should have enough money set aside to replace your car if it’s damaged in an accident.

Follow these tips to find the right insurance company for your needs. It only takes a few minutes to look at JD Power ratings, and you can get more information from the BBB for your own peace of mind.

Lower your premiums by taking a closer look at the deductible and asking about discounts, but make sure that you maintain higher liability levels to protect yourself from lawsuits.

Finally, take the time to shop around to find great rates with a reputable, highly rated company. Simply enter your ZIP code into the FREE tool above to start your search now!