What You Need to Know Before You Buy Car Insurance.

What You Need to Know Before You Buy Car Insurance

It’s about more than just the cheapest rate

While finding the best rate is crucial, it's not the only factor to consider when choosing a car insurance company. Car insurance policies vary significantly in terms of coverage, customer service, and claims processing. Understanding these differences will help you make an informed decision.

Key Factors to Consider

1. Customer Service: Check reviews and ratings to gauge the company's customer service quality.
2. Financial Stability: Ensure the insurer is financially stable to guarantee they can pay out claims.
3. Coverage Levels: Compare the coverage levels offered by different companies.
4. Incentives and Discounts: Look for discounts such as those for students with good grades, safe drivers, or vehicles with anti-theft devices.

Benefits and Perks

Some of the best car insurance companies offer additional perks like rental car reimbursement if your vehicle is being repaired after an accident. These can significantly improve your overall experience with the insurer.

Determine Your Insurance Needs

State Requirements: Before shopping for car insurance, check your state's minimum requirements for liability insurance. Most states mandate that you carry a minimum amount of liability coverage.

Coverage Limits: Understand what common coverage limits mean. For example, 100/300/50 means:

• $100,000 bodily injury liability per person.
• $300,000 bodily injury liability per accident.
• $50,000 property damage liability per accident.

These limits represent the maximum amount your insurer will pay for injuries or damages caused by an accident where you are at fault.

Types of Coverage

Liability Insurance: Covers damage you cause to others. Required in most states. Collision Insurance: Covers damage to your car from an accident. Comprehensive Insurance: Covers non-accident-related damage such as theft or weather damage. Uninsured/Underinsured Motorist Protection: Covers your expenses if the other driver is at fault but lacks sufficient insurance.

Choose Your Deductible

A higher deductible usually means lower monthly premiums. However, ensure you can afford the deductible if you need to file a claim.

Roadside Assistance

While some car insurance companies offer roadside assistance, using it might impact your C.L.U.E. report, which tracks your insurance claims history. Consider using a third-party service like AAA to avoid this issue.

Rental Car Coverage

If you travel frequently or plan to rent cars, consider adding rental car coverage to your policy. This coverage is typically inexpensive and can be invaluable in case of an accident.

How We Picked These Best Car Insurance Companies

Key Factors to Help You Choose

We evaluated car insurance companies based on their reputation, customer reviews, and pricing. Our research included examining JD Power ratings, reading Consumer Reports reviews, and pricing auto insurance plans to find the best options for 2018.

Company Highlights

Amica

• Low-Cost Insurance: Affordable rates for families, students, and homeowners.
• Discount Opportunities: Multiple discounts available, including for bundling policies.
• Financial Stability: Rated A+ by A.M. Best, indicating strong financial health.
• Customer Service: High ratings and a solid reputation, despite limited advertising.

Allstate

• Well-Known Provider: Largest insurance company in the country.
• Discounts Abound: Numerous discounts for safe drivers, students, and bundling policies.
• Accident Forgiveness: First-time accident forgiveness for new customers.
• Customer Satisfaction: Money-back guarantee if you're unhappy with your policy within the first six months.

Geico

• Online Convenience: Known for its easy online quote process and 24/7 customer service.
• Cost Savings: Competitive rates for good drivers with high credit scores.
• Mobile App: Highly rated app for managing policies and filing claims.

State Farm

• Community Focused: Strong local agent network providing personalized service.
• Safe Driver Discounts: Rewards for safe driving habits through the Drive Safe & Save program.
• Strong Reputation: High ratings for financial stability and customer satisfaction.

Liberty Mutual

• Safe Driver Discounts: Discounts for safe vehicles and drivers with good credit.
• Unique Coverage Options: Offers new or better car replacement insurance.
• High Customer Satisfaction: Positive reviews for customer service and fast claim payouts.
  

Conclusion

The best insurance companies save you money and time while offering the coverage you need. Whether you're looking for comprehensive coverage or the lowest rates, evaluating your options based on these factors will help you make an informed decision.