Car Insurance Company Ratings

Reader’s Question:

What is the easiest way to check car insurance company ratings?

Ben

New York NY

 

The easiest way of getting car insurance review is through the internet. There are websites of independent agencies that rate insurance companies. Following are some websites you can check:

1. You can go to rating agencies websites like: A.M. Best Company, Standard & Poor’s, Fitch, and others. These rating agencies commonly grade an insurance company based on their financial strength.

2. Your state department’s insurance website can also be a good source for car insurance review. They would usually post consumers complaints against insurance providers on their website.

3. The Better Business Bureau website can also be a good source of information for insurance companies. They provide consumers and business reviews, ratings, reports, and complaints.

With these easy steps, there is no excuse why you cannot make a proper review of insurance company before engaging business with them.

How Does Your Credit Score Affect Your Auto Insurance Rate?

Reader’s Question:

Are my credit scores used to evaluate my premiums during an auto insurance company rating process?

Casper

Arlington, TX

Your credit score may definitely be used by auto insurance companies as a reference and should not be the sole reason or factor to be used in determining your car insurance premiums there in Texas. However. Your credit or payment history and behavior is definitely an indication of how responsible you are in taking care of your bills, which can give an auto insurance company a good idea or predictor of your future auto insurance risks and probability of filing claims.

However, your age, where you live, the kind of vehicle to be insured and your driving record would have a more significant impact on your auto insurance premiums. Credit score is merely a way for the car insurance company to categorize the kind of customer you are, especially when it comes to billing but your overall auto insurance risks are based on the factors stated above. Driving history itself already has the biggest impact on your rates among all factors, followed by your age grouping and so forth.

So yes, auto insurance company ratings do use credit but not in the same way as other companies would. Also, when an auto insurance company does use your credit score it should have no impact on your credit score at all. It would also be advisable to shop around, the Internet is a great way to be able to compare auto insurance rates from different carriers conveniently.

Auto Insurance Rates and Vehicle Types

Reader’s Question:

I will be buying a new car this coming month and now I need to get auto insurance for it, is it true that the kind of vehicle I buy would influence my future rates here in Michigan?

Arthur

Battle Creek, MI

Yes, the kind of car that you buy and insure, although not the deciding factor, would definitely have a significant influence on how your rates there in Michigan would be determined. Auto Insurance company ratings for each vehicle type, model, manufacture and year vary due to the fact that every model and car type have their own pro’s & con’s when it comes to car accidents.

For example, smaller vehicles like SUVs are statistically shown to get involved in more auto accidents than their larger counterparts. One reason for this would be due to the kind of demographic that prefers smaller vehicles, namely teenagers and young adults which is also seen by auto insurance companies as high-risk drivers. It could also be said that drivers tend to be more careful driving a larger car. Smaller cars also have the highest probability of getting totaled in a collision, driving the cost of insurance for replacement in the future even higher.

Aside from this, you also have to take into account the popularity of the kind of car you are buying among car-thieves and dangerously-envious people who might vandalize a top of the line, and very expensive, vehicle if their owners tend to flaunt it around.

It would also be good to note that your driving history, prior auto insurance coverage, where you live, your age and to a certain extent, your credit history would also be major factors to consider aside from the auto insurance company ratings of your car.

How To Compare Auto Insurance Companies Online?

Reader’s Question:

Im trying to see which car insurance company is best for me. Can you please tell me what to know? Thanks.

Ben

Boston, MA

We all know that in today’s tougher times, we need to find more ways to stretch our precious, hard-earned dollars. Discretionary spending need to be minimized, if not totally eliminated, and you would also have to re-evaluate the bills you’re paying for, which includes your auto insurance policy. The best way to know if you’re overspending is to compare your insurance rates with what other providers are offering, by running free car insurance quote checks on the Web specifically through auto insurance portals or websites. Sometimes, the best solution towards costly insurance policies is to switch to a more affordable insurance provider.

You’re ability to compare rate quote offers and policies from as many auto insurance companies as possible, is vital to getting a more affordable insurance policy. Rates can vary greatly between carriers. Car insurance portals are a great tool since you will only have to run a search once using information such as your age, the car you drive, zip code etc. and within a few seconds, you are provided a listing of all the rates available to you. This makes it easy to spot the carrier that best fits your price-range.

Auto insurance company ratings are also a good indicator of how well a company conducts its business, and is readily available on the websites of independent raters such as Moody’s, J.D. Powers, among others. This is crucial as you don’t want to end up paying good money on a company that might end up bankrupt soon, or those that would cheat their way out of paying you rightful claims. Auto insurance company ratings also give valuable information regarding their competitiveness and overall quality of service, which should not be sacrificed in pursuit of low-cost car insurance coverage. This will maximize your ability to get a cheaper insurance company without losing important auto insurance coverage.

Talk to your agent about available discounts, like from a credit union membership or profession like a teacher, good students and military.

Also, raise your deductible amount to the highest level you feel comfortable with, this is the best way to lower your annual premiums.