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Shopping for Car Insurance: Tips for the Road
Believe it or not, when it comes to shopping for auto insurance,the premium amount isn't the only thing that should shape yourpurchasing decision. Unfortunately, many consumers aren't awarethat there are other factors to consider when buying carinsurance--and end up regretting their decision.So before you sign on the dotted line, consider the followingfactors and make a smarter decision about your car insurancepurchase!Proper LicensureUnfortunately for consumers, there are dishonest agents andinsurers in the marketplace that aren't licensed to sellinsurance. As you compare policies and insurance companies,remember to verify whether your agent and the company he or sherepresents are licensed to sell insurance in your state.Go beyond verbally asking your prospective agent and check yourinsurer's credentials through the Department of Insurance (DOI)in your state. In addition to information about insurance, theDOI also keeps track of insurers licensed to sell insurance inyour state. If the DOI doesn't have record that your prospective agent islicensed to sell insurance, don't buy a policy from that companyor agent--doing so will only open yourself (and your wallet) upto becoming a victim of insurance fraud.Financial StrengthIf you've never thought about checking the financial solidity ofyour prospective insurers, you're not alone. It is one of thesingle most overlooked factors by consumers shopping for carinsurance. The reality is that the cheapest car insurance in the worldwon't do you any good if the insurer goes bankrupt or doesn'thave enough money to pay out your claim. Save yourself theheartache of doing business with a financially unstable insurerand check the financial standings of every insurer you'rethinking about buying a policy from. Independent rating agencies like AM Best are great resources forinvestigating would-be insurers--and can usually be accessed forfree. Customer ServiceYour insurance company, its agents, claims adjusters and allother representatives should answer your questions and fileclaims in a friendly and efficient manner. You can avoid thefrustration of doing business with an insurance lacking incustomer service by doing a little research before signing apolicy with them. You can usually get a good idea of the insurer's customerservice skills through casual interaction with them. You canalso ask your prospective agent if there's a customer servicedepartment or claims representative, which will typically makeit easier for you to contact someone if you need to file aclaim. Some consumers even call the insurance agency to see howlong they're put on hold before being connected with someone whocan help them. And, of course rating agencies like AM Besttypically disclose customer service ratings for inquiringconsumers.Your GutDuring the auto insurance shopping process, pay attention to gutfeelings and reactions. If you see a red flag during yourinteraction with potential insurers, don't ignore it. You'rebetter off taking your business to an agency and agent that youfeel comfortable with. Applying Lessons LearnedWhile nobody likes to spend a lot of money on auto insurance,you can make the most of your premium dollars by taking theabovementioned factors into account. So, while you're on yourquest for cheap carinsurance, remember these tips to make sound purchasingdecision!About InsureMe InsureMe links agents nationwide with consumers shopping forinsurance. Specializing health, home, life, long-term care andauto insurance quotes, theInsureMe network provides thousands of agents with insurance leads everyyear. For more information, visit InsureMe.com.
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