Buying Auto Insurance: Comparing Insurance Companies

Once you know the questions to ask and the coverage you want, it's time to comparison-shop by contacting insurance companies and agencies. Here are some steps to follow:

Contact a Number of Companies: Include large companies that sell auto insurance through their own agents, independent agents that sell for several different insurance companies and "direct writers," or insurance companies that sell to the public over the phone or on the Internet.
Get as Many Quotes as Possible: Many states offer free comparisons of auto insurance prices. You can also get quotes over the phone.
Use the Internet: Some companies offer online quotes and even provide comparison quotes from some of their largest competitors.
Ask Friends for Recommendations: Be sure to ask about reliability and how quickly claims are processed.
Check the Insurance Companies' Complaint Records: You can find out how many consumer complaints were filed against insurance companies through the Web site of the National Association of Insurance Commissioners.
Look Up the Companies' Consumer Satisfaction Ratings: You can find these on the J. D. Power and Associates Web site.
If You Fall into the "Hard-to-Insure" Category Because of Past Accidents or Moving Violations, Look for a Company That Offers "Nonstandard" Coverage: If this isn't an option, you'll have to purchase insurance through the company that's assigned through the state's high-risk pool.

For More Information

Your state's insurance department is a great source of information on auto insurance. Inquire about minimum auto insurance requirements in the state, whether the insurance companies you are considering are licensed and inquire about complaints. You can find the number of your state insurance department in the telephone directory, or visit the National Association of Insurance Commissioners� Web site or the Consumer Action Web site.

Written with the help of Courtney Nash, General Research Specialist at Ceridian Corporation.