Not All Car Insurance Companies Are Created Equal

Category: Finance, Insurance.

A person looking for insurance for their vehicle has several auto insurance companies from which to choose, and sometimes information can be conflicting and difficult to understand.

While the basic premise of obtaining car insurance is the same for all auto insurance companies, how they sell the policies, price the coverage and react to customer claims is what separate them. Contractual language in most insurance policies is difficult to understand without an interpreter and even then, the meanings of some language may seem to be contradicted in other areas of the contract. All car insurance companies must be licensed to sell insurance in the state in which they do business and not all will be available in every state. Although there is some regulation concerning a company s ability to only service certain areas. Depending on an area s history of claims due to theft, weather- related losses and driving reputation a company may decide not to do business in a particular part of a state. From the high- priced, everything is covered auto insurance companies to the ones offering bare- bones coverage at a budget premium, most states offer the complete gamut of available coverage through a plethora of car insurance companies.

Not All Car Insurance Companies Are Created Equal. Choosing the right one should be based on information from other policy holders and the state insurance commission, and not on advertisements. While every insurance company is required to meet the obligations under the contract in the policy, there are numerous ways some of the more unscrupulous auto insurance companies attempt to get around paying any claims. By tapping the experience of a friend or relative has had with auto insurance companies can be a good place to start in making a choice. While it is unlikely it will contain language such as no claim will be paid unless the accident happens between 2 and 2: 15 on a Tuesday, there are a few car insurance companies that add language so restrictive that their odds of pay a claim are minimal. When looking for coverage, a person should look at the company s reputation of paying off claims quickly and with the least amount of hassle. How fast and easy it is to obtain coverage from car insurance companies should also be an indicator of how they feel about their customers.

Fast, friendly service should be a given if the company hopes to have any repeat business. If the company fails to respond in a timely manner to requests for insurance quotes and is slow in returning calls for questions about their coverage, they will likely be slow in responding to claims or complaints.