Doing an Auto Insurance Rate Comparison – Factors to Consider

Doing an Auto Insurance Rate Comparison – Factors to Consider

If you are looking for a new auto insurance policy, of course you want to pay the lowest rates possible. The amount of your auto premiums should be a major factor in choosing a policy to go with. However, there are other factors to consider when doing an auto insurance rate comparison. Below are a list of three things to look at beside rates.

1) Coverage options. What good is paying for a car insurance policy if it doesn’t offer you adequate protection? When comparing policies, you should look to see how protected you are under each policy. What are the monetary limits of certain payouts? How much is covered if your car is stolen? Are they including things like roadside assistance or rental car reimbursement?

2) How well does the company payout claims? Not only should you do your homework and compare the specifics of the different policies, you should also spend a little time comparing the companies themselves. One auto insurance company may have a much better payout rating than another. In other words, how hard is it to collect on a claim? Some companies will make you jump through hoops and other companies may have a history of denying claims for one reason or another.

3) The financial situation of the company. There have been a lot of new auto insurance companies to pop up over the last few years, especially online companies. Many of them are not in great financial standing. Why is this important to you? Simply put, you want to make sure that the company will be around long enough to make a payout to you if need be.