How good is your auto insurance company?


Cheap auto insuranceCheap is not always what’s best 

Cheap auto insurance is not always good auto insurance. A product may be cheap to buy, but if it doesn’t work when you need it to work it’s a complete waste of money. The same goes with auto insurance; many people are thrilled to see a very low auto insurance quote from a company and immediately sign up for it. Things like insurance and other financial dealings should never be completed in a hurry and should always be debated and compared extensively. 

Auto insurance policies are not what they used to be fifty years ago and are much more complicated nowadays; it’s a task you need to rise up to and understand how the industry matures with time. Too many people today don’t understand that their auto insurance policies and the cover it provides them. The primary detail most people miss out is that cheap auto insurance that provides a lower cover in exchange for a lower rate is not at all a good policy unless you have a car that is worth less than $1000. 

Companies that are not rated – an incident waiting to happen 

Companies that are not rated with the state authorities are also in a position to provide their customers with substantially lower rates; these substantially lower rates attract customers to the company. This all works fine until the very factor that helped the company gain popularity pushes it into huge losses and out of business, leaving their customers without protection from the financial implications of a car crash. Auto insurance from such companies is strongly advised against in the best interests of the consumer. Most smaller companies are not registered with the State 

Government and Department of Motor Vehicles and thus have no guarantee from the government to back them up. If a financial company like an insurance company does go bell up on you during a rough economic recession or a personal bailout the government will step in to rescue your. As a citizen of the United States you are protected against such occurrences. For these aforementioned reasons it best to pick an insurance company which is listed with your State Government and Department of Motor Vehicles; resisting offers that are too good to be true is sometimes the wiser choice.  

How to ensure your company is rated – prevention has always been better than hospitalization 

You can always go to your States Insurance Council and verify if the insurance company is registered with them or not. Also check up with the Department of Motor Vehicles, they have a record of all accepted auto insurance companies and if the clerk at the office is a friendly person you can always ask them to suggest you a company which is reliable and hasn’t been involved in any major scams or the like. Another thing worth checking is if the auto insurance company you are choosing to go with has invested directly or indirectly in any repair shops; as such companies force you to get the work done at their own workshops and more often that not charge large sums of money for shoddy jobs. If you are unable to get this information about the company from the Department of Motor Vehicles or your States Insurance Council, you can simply refer to the fine print on your policy and confirm this with the executive you are in contact with while buying your insurance.