Look at a lot more than just cost, because comparison between companies is meaningless without research on these three topics for each company you are considering:

1. Complaints filed with your state insurance commissioner
2. Payment practices that increase your chances of being sued
3. Miscellaneous topics, such as use of credit scoring to set premiums, denial of medical treatment to their own insureds, insisting on the right to deny the consumer the right to arbitration in UIM claims, etc.

So you heard or saw an advertisement for low cost auto or motor vehicle insurance and you are thinking of making a switch: Do not do it until you have read about and considered all aspects of such insurance coverage. Otherwise, you might have saved a few bucks, but exposed you and your family to inferior coverage-and, in the case of some hard-nosed companies, exposure to being sued, should you ever cause an accident.
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Insurance Company Advertisements Deceive

If some of the millions of dollars spent on advertising auto insurance would be devoted to fair payment of injured insured’s own claims against their own company, we probably wouldn’t even have to make mention of this. However, the advertisers’ portrayal of insurance responsiveness with homey images, friendly messages, beautiful music and promise of quick claims service do not equate to quality when it comes time for payment for personal injury claims following an auto accident.

We know that getting your car fixed promptly is important. Some companies may be more responsive on property damage than others, but that should not be your first priority evaluating insurance service. A day or two wait for your car is nothing compared to being literally cheated out of your legitimate payments, as is the practice of some of the more aggressive companies. See the discussion below and the links provided. If getting your car fixed in the fastest time is the most important thing for you, you can ignore everything that is written in the following paragraphs, because they focus on the bodily injury aspects of auto insurance claims service.

So, our advice is to ignore the advertising images: the insurance industry did not become one of the wealthiest in America by being everybody’s best friend. Understand that these smiling people on television ads are really your adversaries. There are many thousands of reported cases where insured have been forced to sue their own companies. None of these cases has to do with getting people’s cars fixed. Prompt property damage repair is the simplest and easiest part of an accident claim. Instead, these lawsuits against insurance companies all are based on claims that an insurance company did not perform according to the law and in accord with its own contractual provisions.

Research Suggestions to Check Out Auto Insurance Companies

Our suggestion is that you research two or three companies. A good place to start is with the Better Business Bureau, followed by a contact call to your state Insurance Commissioner. You can call the Better Business Bureau in your own area and learn how to inquire if any complaints have been filed. The most effective research, however, is probably through your state Insurance Commissioner. Use the link provided to contact your Insurance Commissioner and obtain information in five topics:

1. Ask her how you can learn about the number and types of complaints that have been filed with her against or about a company that you are considering.
2. Ask her how you can obtain a count of the number of times a company has been involved in reported litigation, whether brought by the insured against his own company, or by the third party as a bad faith claim.
3. What is the reported percentage of first and third party claims the company settles by negotiation, as opposed to arbitration or litigation? Ask her for the statistics relating to the percentage of claims settled, versus the percentage that goes to arbitration or litigation. Would it surprise you to learn that over half of the claims of one of the largest and most popular companies end up in arbitration or litigation?
4. Ask her what actions or enforcements she has had to take with respect to any company you are considering.
5. Does she know if any of the companies use credit scoring to set premiums, and are there any restrictions in your state on use of credit scoring.