Which Insurer Is Right for You?

Selecting an insurer involves much more than just finding the best car insurance offers. Learn what factors you should consider when deciding on the right auto insurer for you.

First Stop: Your State Department of Insurance

Before you seek out car insurance offers, you should visit the website of your state's department of insurance. On this site, you can find consumer complaint ratios that indicate how many complaints a particular insurer received for every 1,000 claims filed. Make note of the companies with the lowest complaint ratios and try to find offers on policies from those insurers. If you cannot find complaint ratio information on your state's site, try looking on another state's site. Though an insurer's behavior and policies can vary by state, a bad carrier will usually have a large number of complaints regardless of geography.

Talk to Your Mechanic

If you have a mechanic or local body shop you trust, talk to them about which insurers they recommend. Body shops deal with insurance companies day in and day out, and they can steer you in the right direction before you get car insurance offers. Ask them which insurers are the easiest to deal with and handle claims in the most efficient manner. You might also inquire about the insurers that are most inclined to allow the use of original equipment manufacturer parts instead of aftermarket equipment. That way, if your car is ever in the shop and you have to file a claim, you will have the peace of mind of knowing your insurer will be cooperative.

Don't Forget about Customer Satisfaction

You want to be sure you're getting car insurance offers from companies that treat their policyholders well. Prior to committing to a policy, look into the insurer's customer satisfaction record. You may consult a site like J.D. Power & Associates to review their rankings of various carriers. Every year, J.D. Power sends out surveys to some of the policyholders of all major auto insurers to inquire about the company's premiums, coverage offerings, claims handling, and more. You can use the J.D. Power ratings as one criterion to decide among the three or four insurers on your short list.

Financial Strength

Financial strength is an especially important consideration to make when shopping for car insurance offers because your ability to collect on a claim hinges on the company's stability. If you choose an insurer that has a shaky financial outlook, there is a chance you may never get reimbursed for a covered loss. Try to stick to the insurers with the highest financial ratings according to indexes like Standard & Poor's and Moody's. For more information regarding car insurance offers, look at our frequently asked questions section.