How to Compare Car Insurance Companies Rates and Ratings

Reader’s Question:

With a lot of insurance companies going bankrupt these days, I’d like to be informed as to which companies would make a good fight and survive the recession. Can you show me how to compare car insurance companies? That way, I know I’ll be dealing with an insurer with integrity and credibility.

Clay

Topeka, KS

Hard times call for hard measures. And though it would probably take up some of your time, it’s important to see and compare car insurance companies which you’ll be entrusting your hard-earned money with. It would truly make a difference knowing that you’re on safe grounds.
Probably the easiest way would be to ask friends and families of their experiences with various car insurers. Their pleasant and not-so-pleasant experiences would give you an insight as what to expect from these car insurance companies. There are also online forums and discussion boards that tackle common complaints from consumers against some insurance carriers. Some policy holders post their views and reviews regarding the services of some companies. You’ll at least have an idea which of these car insurers are given the highest satisfaction rating by the consumers.

You could also check out some websites of different organizations which posts ratings and analysis of insurance providers. Their comprehensive reports provide up-to-date information on each company’s record. These profiles will show the strength and weakness of each one.
So, don’t go purchasing that car insurance yet. Make time to check everything that will be offered to you. Choose a car insurer that is reputable enough to cover you adequately, especially during accidents.

What Determines the Average Auto Insurance Cost?

Reader’s Question:

I’m considering changing my car insurer. I just feel I’m not getting my money’s worth from my previous company. Can you tell me what the average auto insurance cost is nowadays? That way, I’ll know if I’m being billed right.

Bono

Gulfport, MS

According to the National Association of Insurance Commissioners (NAIC), the average cost of auto insurance as of 2007 is $867 and is seen to increase in 2008. A lot of factors affect the cost of auto insurance, like your age, gender, make and model of your car and even the state where you live. Typically, young drivers are charged with the highest auto insurance premiums. Due to inexperience and high rate of accidents, this age group is considered as high-risk by most insurance companies.

Males also pay higher insurance costs than females because of statistics showing females as being less aggressive on the road. Males who are married, though, would be billed lower than their single counterparts.

Which state you’re in also determines the cost of your auto insurance. Keep in mind that smaller towns with less traffic rates lower than in cities where there would be higher chances of accidents. So, while the figure above may give you an idea of how much you should be paying, it should not be your only guide to determine how much your auto insurance should bill you. Prepare yourself for a number of questions which would affect the auto insurance cost you’ll be paying.