Tips For Buying Car Insurance
Is it better to buy car insurance through a local agency or to buy it directly from the company? In many cases it costs less to buy direct because there is no "middleman". But this is not always true. Tip Number One: Get quotes from both local agencies and insurance companies that sell direct.
Is good service important to you? The advantage of getting your insurance through a local agency instead of buying direct is that you can get personalized service. You won't have to work your way through a series of phone menus to speak to someone. Plus, you won't get a different person every time you call. On the other hand, companies that sell direct have longer hours than most insurance agencies and they have 24/7 automated systems for getting policy information. Tip Number Two: When two quotes are close to the same price, ask yourself which of the two would give you the best service.
There is more to choosing an auto policy than price. Reputation and stability are the most important considerations. You can check the reliability of an insurance company at www.ambest.com. Tip Number Three: Make sure you sign up with an insurance company that is willing and able to pay your claims.
Some companies and agencies quote the state minimum liability limits and do not include other coverage you may need. Tip Number Four: Make sure the coverage amounts are the same in all your quotes and that they include all the coverage you need.
The companies and agencies quoting you might not run reports on you until your policy gets to underwriting. Tip Number Five: Before you sign up, make sure all of the reports have been run to avoid a rate increase.
There are two types of insurance agencies. Certain companies will not appoint an agent without an agreement to sell only for them. These agents are called captive and they sell for companies such as State Farm and Nationwide. Other companies will appoint agents who write for their competitors. These are independent agents and they write for companies such as Travelers, Hartford, and AIG. Companies that sell direct usually don't have agents writing for them (except Progressive), so they offer policies you can't get through an agency. Tip Number Six: Get quotes from all three sources to increase your chance of getting the best rate and service.