How to Compare Car Insurance Premiums
- 1). Consider the coverage. Car insurance can be comprised of several different forms of coverage, including comprehensive, collision and uninsured motorist. Comprehensive insurance protects your car in the event of a fire, theft or flood. Collision covers your car if it strikes or is struck by another vehicle or object. Uninsured motorist coverage provides insurance in the event you, your passengers or vehicle are injured by an uninsured motorist or a hit-and-run-driver.
- 2). Look at the deductible. Your deductible for each insurance is the amount you pay out of pocket in case you have an accident and need to file a claim. Typically, the lower your deductible, the higher your premium is.
- 3). Review the coverage limits. Insurance coverage has different limits or amounts that insurance carrier will pay in the event of a claim. The higher your coverage limit, the higher your premium usually is.
- 4). Look for pricing discounts. You may receive insurance discounts based on a good driving record and car safety features, such as airbags, anti-lock brakes or an alarm. Make sure these discounts are listed on the quote or insurance proposal.
- 5). Consider the insurance company's reputation. In the event of an accident, you want to be sure you can reach your insurance carrier to file a claim and that it will respond to the situation in a timely manner. You also want to know that the company will be around tomorrow so you don't have to search for a new carrier. Visit the insurance company's website. Look up the company's history and see if there are any customer comments available. You can visit the Better Business Bureau's website and check with your state's department of insurance for consumer complaints. Look at J.D. Power and Associates' customer satisfaction surveys and contact local body shops for experiences with insurance companies. Inspect the insurance company's financial strength ratings by reviewing A.M. Best and Standard & Poor's ratings.
- 6). Look at premium price. With the previous considerations, you can look at price and make a more educated decision. While you may favor the lowest-priced quote, review what you are getting for your money's worth.
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