While it’s always smart to compare auto insurance rates when looking for vehicle coverage, price is not all you should be looking at. In fact, the insurance company itself can make a great deal of difference in terms of its rules and policies as well as its “corporate culture” – and customer service record.
Fortunately, you do not have to rely on these companies’ own PR and advertising – nor should you. In an industry as regulated as auto insurance, there are government agencies and consumer watchdog organizations that can be relied upon to provide fair and accurate auto insurance company ratings. However, even with a highly-rated insurer, it’s a good idea to review the company’s rules and policies before you sign on the dotted line and hand over your check.
Getting Started
It’s fairly easy to get numerous insurance quotes within a few minutes on the World Wide Web; several websites that provide a list of auto insurance companies offer web-based applications that can get you these quotes almost instantly by providing basic information in a few fields. However, once you have the best car insurance quote, your job has just begun. It’s actually important to get more than one quote, because these quotes are only an approximation of the price you would ultimately pay for your policy; the exact figure will have to be determined by confirmation of the information you provide.
This brings up an important issue. You may be tempted to “fudge” on the info you provide. While oil companies and senators may be able to get away with this (though less frequently, these days), you won’t. Any information you provide will be cross-checked by the insurer for accuracy – and any discrepancies will be grounds to deny you coverage (or worse, drop your coverage or deny a claim later on).
Factors That Determine Coverage Costs
Even as you are doing your car insurance comparison, you should be aware of the kind of information that ultimately determines the price of your auto insurance policy. Of course, the biggie is your driving record; while a citation for an improper lane change or failing to signal when making a right turn won’t have a huge impact on your rates, a major speeding ticket, reckless driving or a D.U.I. most certainly will. It goes without saying that a clean driving record results in much better insurance rates.
However, there are other factors that can have a great impact as well. One of these is the make and model of your vehicle; newer cars cost more to insure, and more conservative designs such as four-door family sedans equipped with safety equipment are going to come up much cheaper in your car insurance comparison than say, a two-seater convertible roadster or an SUV. Where you live also determines your insurance rates; for example, you’ll pay more for insurance if you live in an urban area than a region that is largely rural.
One of the best ways to get lower rates is to go with a large insurer with whom you carry other policies, such as renters, homeowners and/or a life insurance policy. Such big insurance companies will usually offer substantial discounts to an existing customer who chooses to insure their vehicle with them as well as other items.
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