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Choosing the Right Auto Insurance Company

Things to Remember...

  • Plan a price range for the policy
  • You can choose between comprehensive and collision insurance
  • Always check the stability of the auto insurance company
  • Shop around

There are tons of auto insurance companies, and knowing exactly what to look for can be exceedingly difficult.

Most insurance companies like to throw incentives at you to make themselves seem more attractive, but sometimes these incentives are used to lure you into signing for a bad policy that really doesn’t protect you from anything.

If you are looking for your first auto insurance policy or changing your insurance company, be sure you know what to look for in the best auto insurance company.

Enter your zip code to compare auto insurance rates in our free car insurance comparison tool!

Table of Contents


It goes without saying, but the price is a big factor when trying to choose a reliable auto insurance company.

You don’t want to choose someone that has inflated pricing that is beyond your budget, but going with the cheapest policy isn’t always the best thing, either.

When you are considering a new policy, plan a price range for the policy. Look into your budget, and see what you can afford.

If the features and benefits you get from the insurance company are much better than another company, then going a bit above your budget may not be an issue.

However, try to stay within this range to ensure that you don’t spend too much.

Coverage Amounts

Comprehensive and collision coverage types will pay for damages to your own vehicle. Liability coverage will pay for damages to the other party or parties if you are responsible for an accident.

Aside from thinking about what type of policy you should get, look into how much coverage you are getting.

For example, if you get comprehensive insurance that covers up to $20,000 in damage, but your car is worth $40,000, then there might be a problem if it needs a major overhaul.

With liability insurance, the value of the policy only covers the other person, so think about how much protection you need based on your driving habits.

Evaluate what coverage levels best fit your auto insurance needs before you buy.

Comparing rates online for the type and amount of coverage you’re looking for is a great way to find the right auto insurance.


An auto insurance company has to do more than just protect you, it also has to serve you. Look into what services you get when choosing an auto insurance company.

Customer service should be inspected because talking with people that pass you onto other employees or talking with people that give you an attitude can make dealing with the company a hassle.

If you have had an accident, the last thing you want to do is have problems from your insurance company.

Ask about the discounts you can get, and also ask the insurance company what bonuses you are getting when you buy a policy.

For example, do they pay for rental cars when your car is being fixed?

Ask representatives about everything you get when choosing them, as this may help separate one company from another.

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Stability and Company History

If you choose one of the big national brands, then this is often not required, but you should always check the stability of the auto insurance company.

Unfortunately, businesses go bankrupt all the time, and choosing an auto insurance company that is able to go under is the same as having no insurance at all.

Knowing a leading auto insurance company can be profitable in making the choice.

You can typically find this information by looking a little into the company and by checking reviews for that certain company.

Claims Assistance

One of the main reasons for getting the top rated cheap auto insurance is to help you when you have an accident and you need to make a claim.

Whether it is a loss or liability claim, the auto insurance company should help with your claim and it should ensure that all the information is accurate.

Normally the best way to check for good claims assistance is to see how many complaints are made against the company.

If there are few, then usually the claims assistance is good and accurate. If not, then you may have to fight your auto insurance company over bumbling your claim.

Also, check for what the auto insurance company pays for when you are getting your car fixed.

Here are a couple questions to ask:

  • Does it pay for brand name parts or just generic ones?
  • Does it pay any repair shop, or are you limited to a few body shops in your immediate area?

Representatives should have no trouble answering this for you.

Diminished Value

Many people consider a car to be less valuable after it has gone through an accident.

This is because the car might feel different after the accident, and the perceived value is generally lower in the minds of most people.

See if the auto insurance company considers this an issue, and what they do if they diminish the value of your car.

Do they offer you a check for the difference in value, or do they just offer less coverage? Normally the best either offer you a check, or they don’t devalue your vehicle.

Shop Around

The best step to getting great auto insurance is to shop around.

Getting quotes from many different insurance companies ensures that you get a fair price, and it can make it easier to find insurance companies that would be best suited for your needs.

Not only that, but auto insurance companies are more apt to give you discounts and better policies if they know that you are comparing their services with their competitors.

So check out different quotes, compare what you are getting with each company and then choose the best policy to cover your car and driving habits.

Enter your zip code into our free auto insurance comparison tool to find personalized rate quotes now!


  1. http://www.consumerreports.org/cro/news/2011/05/top-10-tips-for-finding-the-right-car-insurance-policy/index.htm
  2. http://auto.howstuffworks.com/buying-selling/cg-car-insurance-tips.htm
  3. http://www.naic.org/Releases/2007_docs/college_insurance.htm
  4. http://www.propertycasualty360.com/2015/11/19/20-auto-insurance-companies-ranked-from-worst-to-b
  5. https://en.wikipedia.org/wiki/Diminished_value
  6. http://www.boston.com/business/specials/autoinsurance/waystosave/

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