Every auto insurance commercial promises to save you money if you switch to them. They spend millions of dollars on advertising to convince you that their company is right for you. They try to lure you in with catch phrases and cute characters. Although companies do this in an effort to gain your trust, it can be difficult to know what you are getting from a twenty-second commercial.

Here are a few suggestions to help guide you when shopping around to find a better rate on coverage that you already have. This will also help you find a better company if you are unhappy with the service you are currently receiving.

 

What to Look for in an Insurance Company

While advertising works, most people find their insurance through word of mouth.  A friend or family member tells you about a good experience or a bad one, and you make your choice based off of their suggestions. This is why insurance companies hold customer service as a top priority. They know that when a customer is happy they will recommend their company to others.

If you are more technical, research the company’s ratings from an independent source. Also, search the web for any complaints your prospects may have.  Keep in mind that just because a company is big, doesn’t mean they are right for you.

Once you have narrowed down the list of companies you are considering, request a quote from each company.

When you sit to review your quotes, be sure that you have selected the same coverage levels that your current policy stipulates. The first thing you will notice is the difference in premium amounts. This is because insurance companies do not look at their policy holders equally. They all have factors they consider when insuring their clients.

 

What Insurance Companies Look for in Their Policy Holders

Insurance companies use many factors to rate their customers. Age, driving record, type of vehicle, and where you live all help determine your premium. Each company has their own formulas they use, so it’s always smart have about five different quotes from five different companies to compare.

An insurance company’s main concern is risk. Risk is how likely you are to file a claim under your policy. The more the risk the company feels you are, the higher premium you will pay. Younger drivers, accidents, tickets, or having a high theft vehicle all attribute to greater risk.

If you have multiple tickets and/or accidents, then you may find it difficult to find a rate you can afford much less a company that will assume your risk. This is why it is always good to maintain a clean record. You become valuable to a company when you are less likely to incur a claim.

Weigh All the Factors

People on a budget shop based on price. But the lowest price is not always great for your coverage. Shop by comparison. Weigh all the factors: customer service, company rating, benefits, coverages, and price need to be equally measured. Then make an informed decision and choose the company that will be there for you should you need them.

Finally, it is easier to get insurance if you have insurance. When you are considering a switch, don’t wait until your policy is about to lapse. Also, do not switch in the middle of your policy period, there are many fees for canceling your policy early. Your company will send you a renewal notice a month before the policy is set to renew. Use your renewal notice to evaluate what others are offering.

If you have good standing with the company you are with, you become more attractive to the companies you are prospecting. If you are happy where you are at, speak with your insurance company to see if there are updated rates or any new discounts you may qualify to get.