Quoting Car Insurance

If you are ready to save money off of your auto insurance, the most effective way to save money, no matter what state you live in, is to shop around. Comparing the unique auto insurance rates charged by companies licensed to sell insurance in your state will help you make an educated decision when it comes to buying coverage.

While rates are extremely important, many consumers assume that the only factor to consider when buying auto insurance is price alone.

To avoid making a decision that you will regret when you buy financial protection, make sure that sift through the long list of insurers and qualify each company that you are considering. When you are quoting car insurance, knowing what to consider so that you get a great priced policy with a reputable insurer is important.

Read this guide to retrieving car insurance quotes, and learn how to find the right insurer and how to prepare for the quoting process. And be sure to enter your ZIP code into the FREE tool above to start comparing quotes today!

Know What Is Important When Shopping For Car Insurance

All too often, consumers will call for quotes and consider solely price when making a buying decision. This is one of the biggest mistakes you can make when you value customer service and convenience.

Because insurance in a financial product that is required in virtually every state, you must be sure that the company that you purchase your car insurance from is stable and financially secure.

You should also verify that the company is licensed to offer products in your state and does not have a long list of complaints. By looking for indicators that the company is in business to provide you with peace of mind and protection, you will feel secure in your decision.

Here are the most important factors to consider when you are quoting car insurance if you want to select a top-rated brand:

Financial Security Ratings and Creditworthiness

Did you know that a company's financial rating is public record when they operate in the insurance industry? All consumers have the right to know the financial strength of any insurance company that the patronize because they are entrusting the company to pay out on claims when claims are filed.

Price may be very important, but before you generate a quote from a company that low-balls premiums, you need to understand why selecting a low-priced quote from a company that is not financially secure is dangerous.

Insurance quotes are all based on how much risk a policyholder presents. If there is a greater exposure of risk, the company must charge more premiums to balance the risk and to cover the claims that the company anticipates policyholders will file throughout the year. If the company takes on a great amount of risk and does not charge to offset, they are much more at-risk of going bankrupt because they are not pricing their policies right.

You should never take the word of an insurance company in regards to financial ratings. Instead, it is best to rely on ratings from one or multiple independent agencies that use financial records and debt information to rate the financial status of companies in the industry.

Look up each insurer on your list and see if any of them are vulnerable rather than financially secure.

Licensing Status in Your State

Did you know that not all companies are licensed to sell products in each state? If you are shopping for coverage online, it is in your best interest to verify that the company is licensed through the Department of Insurance in your state.

By doing this, you will have peace of mind in knowing that the company must comply with the standards set by the Department and that the consumer protection unit will be available to protect you if the company does not comply. To check and see if a company is licensed in your state, visit the state organizations page through the Insurance Information Institute and locate your state.

Customer Service and Complaint History

You buy auto insurance to satisfy state requirements and to buy peace of mind. You never walk into the quoting process hoping that you will eventually file a claim so that you get what you are paying for. This is why you should put customer service before price any day when you are quoting coverage.

You should always get a feel for the company by contacting them first. See which company that you feel comfortable communicating with then you have questions or concerns.

Once you read unbiased reviews online, you should set aside some time to review the company's complaint record. Luckily, complaint records are available through the National Association of Insurance Commissioners. By using the company search tool and entering the company information, you can find out if the company that tops your list has a significant amount of closed complaints.

The reports will show how many complaints have been filed in each state and the complaint ratio compared to the company's market share. This tool will also give you quick and easy access to a company's licensing information and financial information so that you can see the big picture by using a single resource.

Preparation: Gathering What You Need for Quoting Car Insurance

If you have everything that you need to quote car insurance, you can find out how much you will pay through a specific company in minutes.

Failing to have the information on hand can cause delays and misquotes. It is extremely important to get the most accurate information because a single error can lead to a premium increase once a quote is underwritten and issued. Remember, quotes are only estimates, and insurers do have the right to modify the premium if they uncover new information.

Here is the information that you will need to complete a quote online or with an agent:

• Names, date of birth, and license numbers of all drivers in the household
• Age licensed and previous driver license number of each driver (if applicable)
• Driving record of each driver (including tickets and accidents)
• Previous insurance information (declarations page)
• Zip code where your vehicles will be parked
• VIN & vehicle safety features (anti-lock brakes, anti-theft, restraint systems, etc.)
• Lender or lessor information
• Annual mileage estimates, driver assignment for each vehicle
• Odometer readings
• Transcripts for any students in the household
• Driver course certificate for drivers who have completed classes for discounts
• Checking account information for automatic payments

Deciding How Much Coverage Is Adequate

One of the most difficult stages in the quoting process is deciding how much coverage you would like to purchase. Your budget and your needs will be the ultimate deciding factors in how much coverage you will select.

State minimum coverage options, which is referred to as basic coverage by many, will help you comply with state law. While you will be in compliance, you will also be vulnerable because the limits required by law tend to be very low in most states.

You will need to determine how much coverage you need, and how much coverage you are willing to pay for.

Liability

To put this step in perspective, choosing low coverage limits can result in wage garnishments and lawsuits that wipe out your assets. If you are liable for injuries and damage, it is important to have liability limits that will cover all of the bills so that you are not responsible for the expenses the insurer will not cover.

This is why most agents recommend purchasing at least $100,000 per person and $300,000 per accident in Bodily Injury Coverage and an additional $100,000 in Property Damage coverage.

Physical Damage

If your vehicle is financed or you cannot afford to pay for damages out of pocket on your own, you should have comprehensive and collision on your policy. Comprehensive will pay you to repair your car or replace it when damage is caused by fire, theft, vandalism or something other than collision.

Collision will pay for damage sustained while the vehicle was moving, regardless of fault.

Additional Coverage Options

Other coverage options that are not always required are available to protect you. Decide if you need uninsured motorist coverage, to protect you against hit-and-run drivers and drivers with no liability insurance. As much as 12.6 percent of drivers in the nation do not have insurance.

If you live in an area with a high rate of uninsured motorist you should strongly consider paying the additional premium. You should also contemplate buying medical payments coverage, rental reimbursement, towing and accidental death coverage options when you do not have coverage for these risks elsewhere.

If you are quoting car insurance and you want to compare pricing on your own time, use an advanced online quoting tool any time of day. Enter your information, compare pricing, make coverage limit adjustments, and then compare company reviews so that you know you are buying the best policy from the best insurance company.

Be sure to compare rates for car insurance by using the FREE tool below to get started!