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.

You Get What You Pay For
You have heard the advertisements that one auto insurance company is the least expensive, etc. Understand that truth of the old adage applies to insurance policy purchases: you get what you pay for. The best company is probably not the cheapest. How can company policies that save premium costs have adverse impacts upon your wallet?

Think Preventive-Protect Yourself, Your Family, and Your Passengers
We’ve seen far too many cases where the insured, in an effort to save a dollar up front, has left him or his family exposed. Insurance is a good investment; it is necessary; and, it should be purchased in anticipation of traumatic events. How can you foresee only limited consequences of an accident? You can’t.

Think About it: You Need to Buy Insurance to Protect Yourself, Passengers, and Family Members by Purchasing Underinsured Motorist Coverage

Be Honest
A word of caution in dealing with your insurance company: don’t try to fool them on any of the information requested, or by insuring only one driver for each of the family vehicles.

They say everything is bigger and better in Texas, and this is true when you look at the wide variety of different auto insurance companies offering auto insurance. Texas drivers have to consider four main options when they choose an auto insurance company. These include:

• The price of the insurance is the bottom line
• How long this particular car insurance company has been in business
• The customer service that you get from the company
• The comfort level you feel when dealing with the auto insurance representative
• For auto insurance, Texas drivers are now turning to the Internet to get the lowest possible quotes.

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