The question of how to find the best auto insurance company is one that many drivers wonder about. Auto insurance coverage is mandatory in most states, but that doesn’t mean that consumers should simply buy a policy from a company without considering whether the one they choose is giving them the best combination of a good level of coverage and affordable rates.
Before starting to shop for auto insurance coverage, a consumer should consider exactly what he or she is looking for in a company. For some buyers, finding low rates is definitely a priority. Other car insurance consumers want to deal with a local company which can provide more personalized service and are willing to pay more in premiums to feel that they are being insured by a provider which knows them well.
How Auto Insurance Companies Set Rates
Auto insurance companies consider a number of factors when setting rates for their customers. Each one uses its own formula for setting rates and while each one may consider similar items, the weight the company gives to each one will vary. For that reason, rates for the same type and level of coverage can vary significantly between companies.
The factors which influence auto insurance rates include:
- Driver’s age
- Marital status
- Make and model of the vehicle
- Number of accidents the driver has been involved in
- Whether the driver has accumulated moving violations
The insurance company also considers location when setting rates. Drivers who live in rural areas may pay lower rates for their coverage than people who live in metropolitan areas. The insurance company considers that more cars on the road means the likelihood of being involved in an accident is higher and charges higher premiums accordingly.
When a consumer is looking for auto insurance coverage, the company will also ask whether there are any other licensed drivers in the household. When setting rates, the insurer will consider whether the other drivers have been involved in accidents or have moving violations on their record. Since other drivers living with the primary policyholder have access to his or her vehicle, rates will be higher if a high-risk driver lives in the same household.
How to Find the Best Auto Insurance Company
Once a car insurance consumer has determined which traits are most important to him or her in an auto insurance company, the next step in finding the best auto insurance company is to get quotes from several providers.
Shoppers who want to find the coverage they need quickly will find that going online is an effective way to find an auto insurance provider. A buyer can visit individual insurance company websites to learn about the products that different companies offer before requesting a quote. Another option when looking for auto insurance online is to go to a site featuring a quote tool which can provide pricing from several providers.
To find the best auto insurance company, a buyer should make a point of reviewing the quotes carefully before making a decision.