Are All Car Insurance Companies the Same?

People often generalize things that they have limited knowledge. That is why often motorists put all the automobile insurance providers in the same basket and say that they are all the same. This may also be due to the dim view people have about insurers. They may believe that one isn’t better than the other when they say all the vehicle insurance companies are similar.

Each auto insurer has different corporate values, ownership structure, underwriting expertise, risk preferences and competitive edge that it may be ignorance to say all the car insurance companies are the same. Also there are many factors that can make one company more suitable for certain group of drivers than most others. So, it is always best to get a few quotes and compare them for coverage, price and look into strength of insurers.

Another misunderstanding is that people believe auto insurance rates are determined by state authorities. This isn’t really true. Yes, your state insurance commissioner usually needs to approve the rates set by each company but essentially insurers are free to determine their rates as long as they don’t discriminate and break state laws.

All these differences will result in different vehicle insurance quotes as well. Like every other product and service, premiums charged can be widely different depending on the company you apply. That is why it is important that you shop around a bit before accepting any quote. This can be done pretty easily and quickly online and you can get a few quotes from our panel of insurers by entering your zip code above.

What Makes an Auto Insurance Company Better?

If they are not the same than some would be better than the others and you would want to find those more suitable and competitive insurers. There are certain areas to take into account when you are choosing an insurer for yourself and they will be discussed in detail below.

It is important to know that the best vehicle insurer for you is probably different than your parents or children because you have different driving record, experience, age, gender, zip code and all those affect the way each carrier calculates its premiums.

1. Financial Strength
One of the first things you would want to make sure is that your insurer is verified independently to be financially strong. You can see ratings of major insurers on our site. Actually, you can check our auto insurance comparison charts on various pages, including AM Best ratings.

2. Claim Payment Records
Obviously a company with strong claim settlement history will set your mind at ease. The last thing you want once you have a claim is to be quizzed by your insurer and even worse to be messed around. Here are the top auto insurance companies for paying claims to help you decide.

3. Competitive Pricing
Why would you pay more for something if you can get it cheaper, providing everything else similar to each other? General consensus is that large insurers must be more expensive. This is again not necessarily true. They may be expensive for high risk drivers but they are usually cheaper for good drivers. So, don’t hold back when you are getting your quotes.

Every company will come back with a totally different quote for exactly the same driver for the same coverage. According to surveys the difference can be as much as thousand dollars in some areas. And the difference does not appear because one insurer is inferior to the other. This is another misconception. Sales agents keep telling to motorists that only cheap auto insurance companies can give you low quotes because they are not as reliable. This is utter nonsense as large premium difference can happen between two highly reputable insurers.

Now you know that car insurance companies are different from each other and their prices can be substantially different from each other. Take a little time to have a good look around and try to pin down the insurer, which is the most suitable and economical for you. Remember that you are different than anyone else as well and therefore you need to find the company that satisfies your requirements best.

Also, you should be extra careful with self-promotions and advertisements. A company with good advertising strategy and sweet talking sales force can do a lot better in this age of media and television than a company who strives on delivering the best for their customers but lacks in adverting and publicity. That is why you need to look at independent assessments of insurers like the ones we pointed out on our posts.

Some companies try to differentiate themselves from the rest by offering great vehicle insurance policy packages while others concentrate on pricing. And it is up to customers to weigh them up and choose the ones they consider to be better.

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