5 Important Steps to Choosing the Right Insurance Company

A vast majority of motorists consider premium rates as the major factor when they seek for auto insurance, but the reality is that choosing the right insurance company goes beyond the dollar. You can get a cheap premium rate but the claim process becomes an ordeal for you. It is important that you understand the ways in which you can get a hassle-free insurer who will offer good claim process when you need it. As two professionals in the insurance market points outs, there are several things you need to consider when investing in car insurance policy so that you get a trustworthy company that is able to pay your claim on time and in totality.

Dennis Howard, a former insurance adjuster and the director of Insurance Consumer Advocate Network, and Doug Heller, a consumer advocacy with a California’s Foundation for Taxpayer & Consumer Rights both give a chronology of aspects that you must put into consideration before you choose your auto insurer.

Below are 5 steps you can take when choosing the right insurance company as hinted by both Howard and Heller;

1.    Check the department of insurance website in your state
Although it is most likely that you are not familiar with this aspect, every state has a department of insurance. Many departments give a consumer complaint ratio for all insurance companies including auto coverage firms like Geico, Allstate, and StateFarm and others. You should avoid companies with higher consumer complaint ratios. The ratios are given per the number of complaints received in 1000 claims that have been filed.

2.    Examine the J.D. Power Ratings
J.D. Power and Associates is an instrumental resource that provides forecasts, performance improvements and customer satisfaction insights to consumers. You can get information about the best rated car insurance companies in terms of claim process experience satisfaction as well as the pricing and customer relationships. A few auto insurers which have remained on top of the list are Erie and Amica.

3.    Seek the help of insurer body shops
Did you know that body repair shops deal with insurance companies more often because they repair bodies of vehicles that have been damaged? It is likely that they know something if not everything about these insurance companies. Therefore, they may be able to provide useful information. The body shop managers will give you information about bad experience they have gone through when dealing with the insurance companies. These managers also know which insurance companies have the smoothest claim procedure.

4.    Examine the financial strength of the insurance firm
It is not a bad idea to check how the companies have performed financially. Financial performance can give a hint about the company’s ability to pay a claim. Insurance companies are likely to exploit the policyholder in order to meet financial challenges they are experiencing. This means that a financially healthy company is likely to execute good claim. You can check for financial rating of insurance companies from Standard & Poor's ratings and A.M. Best.

5.    Consult an agent
Although agents will charge for their services, they are able to provide you with a choice of auto insurance companies that meets your insurance needs. They will not let you down because they want you to be a loyal customer. The agent will also guide you on how to get an appropriate policy for your car and where you can get discounts.