How to compare car insurance companies

Comparing car insurance companies is important if you want to get the best deal for your insurance needs. Auto insurance companies evaluate and approach different drivers: some companies specialize in low-income families, others in older drivers, and still others in drivers with a less than ideal driving history, so comparing car insurance companies is just as important as comparing auto insurance quotes. . .

You can save hundreds of dollars a year by comparing insurance companies and rates before making your choice. Insurance.com has a quote comparison tool that allows you to compare car insurance rates. You can fill out the form and receive auto insurance quotes from several providers at once. Several quotations are presented on one page for ease of cross-reference.

Check Auto Insurance Discounts

Before you start comparing car insurance rates, make sure you are aware of your potential car insurance discounts for specific cases, such as home insurance and car insurance from the same company, if you have a good driving history or have special anti-theft devices.

Use the same information about yourself and your car when comparing car insurance companies. The best way to save on car insurance is to only buy what you need. For example, you don't necessarily need collision insurance if you have an old car. According to J. Robert Hunter, director of insurance for the American Consumer Federation, most people should have liability coverage and uninsured motorist coverage of $100,000 per person and $300,000 per occurrence.

Set your desired coverage limits before shopping, and then be sure to use the same limits for every car insurance offer. You can also increase your auto collision deductible and comprehensive coverage to reduce your insurance premiums. If you do this, make sure you use the same franchise with each company so that the rate comparison is accurate.

Learn about the auto insurance company's consumer track record

Start with the State Insurance Commission website. State complaint rates are more important than financial ratings for auto insurance. Every state has an insurance guarantee fund that will cover some claims if the insurance company goes bankrupt. However, it is still prudent to check the financial condition of the insurer.

Compare complaint ratio

Once you've narrowed down your list to five or six companies, you can check their complaint records on the National Association of Insurance Commissioners website or your state's insurance department website. It's also worth checking out the most recent Consumer Reports survey of auto insurance providers.

Compare Complementary Car Insurance

You can always get more coverage if you choose. Additional coverage is offered by many insurance companies for cases such as car rental coverage during repairs, towing and labor coverage, or even CD/DVD replacement costs if these items are stolen from your car.

However, if one company offers the extra coverage you want for the same price or close to the price of another company's insurance policy without the extras, it might be worth choosing a policy with the extras, Hunter says.

This article is adapted with the approval of carinsurance.com: http://www.insurance.com/auto-insurance/car-insurance-comparison-quotes/5-ways-to-compare-car-insurance-companies.aspx