Shopping for car insurance can be a very confusing process with a bunch of fine print that the average person can hardly understand. Several years ago most car insurance was purchased through an agent that worked for more than one insurance company. Now it is sold online through customer service representatives as well as through agents in an office. How you buy your insurance depends on what company you choose and whether you feel comfortable doing it all online, over the phone, or in person. In order to make sure all your personal needs are completely covered it is often in your best interest to talk to someone in person, this will make sure your needs are completely communicated and understood.

When you are in the market for car insurance, careful shopping is a must. Prices, features, and benefits vary widely from company to company. Comparison shopping is always a smart thing to do and there are many different ways to do this from online to using an agent to compare for you. In order to guard your best interests, get more than one rate quote. It is possible to pay double from one company to the next. It is also a good idea to evaluate insurance costs before you buy a new vehicle. The year, make and model of your vehicle can have a profound impact on the insurance rate.

Vehicle insurance policies have several different coverages that can be compiled into one big policy so it will cover just about any situation you might encounter. Collision covers damage to the policyholder’s car resulting from running into anything, another car, fire hydrant, or a light post. Comprehensive coverage covers the car in case of theft, fire, falling objects, explosions, or other unexpected problems. These two types should be included in most policies unless the car being covered is an old rattletrap, or the sum of your premium and your deductible are close to or exceed the worth of the vehicle. In this case one might choose to take a gamble and forgo this coverage.

Uninsured/Underinsured Motorist coverage is to pay for treatment and/or property damages of the policyholder in the event that they are injured in a collision with an uninsured driver. Underinsured motorist coverage covers a situation when an at-fault driver has only auto liability insurance and the limit of the insurance is not enough to cover the victim’s damages. There is also Personal Injury Protection, which in some states is a required coverage. It covers the treatment of injuries to the driver and passengers of the policyholder’s vehicle.

Most insurance companies also offer coverages that are not required by law but may be beneficial to a policy holder. These coverages include glass breakage, roadside assistance or towing, and rental car coverage. Glass insurance covers your windows and windshield in case of cracking, pitting, or breaking. Roadside assistance provides services such as bringing fuel should you run out, unlocking your car if you lock your keys inside, or towing your car to a local
auto repair facility should it break down.

Now that you know a few of the terms used in vehicle insurance it’s time to begin researching the agencies available and pick the one you think fits you best. There are a lot of agencies out there, some with well known names, and some are smaller agencies that may not have the best financial situation. The agencies without good financial standing may be out of business before you are even aware there was a problem. To choose the actual company you want to buy your insurance policy from, be sure to check out the financial strength ratings. Refer to the A.M Best and the Standard & Poor’s ratings, both of these companies publish financial strength ratings for all insurance companies, these measure an insurance company’s ability to pay out a claim. The A.M. Best rating is expressed as a letter grade from A++ (the highest) to D. Some companies may be assigned ratings of E, this indicates regulatory action regarding the company’s solvency, F means they are in liquidation and S means suspended. It is only smart to work with companies with B or higher rating. These ratings relate only to the company’s ability to provide the services they offer and have nothing to do with the way an insurance company treats its customers.

Once you have an agency picked out, it’s time to decide if you want to buy online or find an agent that will represent your needs in person. Experts say that consumers who sign on with agents generally have an advantage during the claims process. The agent has a vested interest in you being happy whereas the claims representative has a general desire to keep you happy, but it’s not the same. An agent can also become familiar with your situation and guide you toward a suitable policy. The best way to find a good insurance company and agent? Ask your friends, neighbors, relatives – anyone who drives a car has likely had an experience with auto insurance. Ask an auto repair professional – they see all kinds of cars and talk to all kinds of drivers. Referrals often tell you much more than a company’s advertisements and website.

Finally, when you have made your decisions and have your new policy in front of you waiting for your signature, don’t just assume all is in order. Take a moment and read through it, make sure all the coverage’s you requested are included on the policy. After your signature is on the dotted line of your new policy it is safe to cancel the old policy. Cancellation is only recognized by a written notice from you, if you simply let your policy lapse you are in fact defaulting on an agreement. This leaves the insurance company free to leave negative information on your credit report. After all of this is completed, your shopping is officially over. Relax, take a deep breath and count the pennies you have saved by doing your own shopping as an informed consumer. Remember that safe drivers save even more, so when you hit the road be safe. From your friends at Good Works Auto Repair in Mesa and Tempe.