How to Choose An Auto Insurance Company

Choosing an auto insurance company can be a confusing process. There are so many different companies out there that most people select their insurance company based on insurance premiums alone, instead of also verifying the reputation and financial soundness of the company.

Difficulty: Moderately Easy

Instructions

1. When you are analyzing an auto insurance company the first thing you should do is enter the company's name into a search engine along with words such as complaint, error, denied claim, and rip-off. This allows you to see if there are any complaints against the company on consumer message boards and watchdog sites.

2. If you can't find any major reports online of your company ripping off its clients, you can move on to the next step, which is to verify the company with the Better Business Bureau. Does the company's BBB record show any unresolved complaints?

3. Finally, you should check the financial stability of your car insurance company, preferably with each of the four major financial rating companies. Your company should have a Top 3 rating with at least two of the four rating companies. The companies and their respective Top 3 ratings are: A.M. Best (A++, A+, A), Standard & Poor (AAA, AA+, AA), Moody's (Aaa, Aa1, Aa2) and Fitch Ratings (AAA, AA+, AA).