How to Buy Auto Insurance Find Best Companies | SmartGuy

How to Buy Auto Insurance Find Best Companies

Insurance - Auto

There are several important steps in how to buy auto insurance - find best companies, find the right coverage, and get good quotes.  Every driver is required by law to carry a certain amount of automobile insurance.  Many companies simply prey on this need, setting themselves up as legitimate insurance companies when all they really want to do is drain money for your wallet.  Finding the right company helps ensure that you will not get ripped off, and that they will be ready to help you should you get into an accident.

The first step is to determine the type of insurance coverage you need.  The auto insurance types are personal injury, liability, comprehensive and collision, uninsured/under-insured, and medical payments.  Because insurance is regulated by state government and not the feds, each state sets its own minimum requirements regarding each type of coverage.  This information is available through the state's department of insurance.  When you know what insurance you need, it is then time to look for the best and most reliable insurance provider.

How to buy auto insurance
Find best companies is the second most important step.  Building a relationship with a good insurance company will be beneficial when it comes time to file a claim.  Automobile insurers are broken down into three major types.

Direct Providers
They sell insurance direct to customers, offering auto insurance quotes either on line or over the phone.  A direct provider saves consumers money because there is no middleman like a broker or agent.

Brokers
A broker is a representative of several different insurance companies.  The advantage of working with a broker is that they have access to many policies and companies, and can shop around to find the best policy for you.  They are generally not interested in any particular company, so they can provide you with unbiased service.  Also, if you have a problem with a cheap car insurance company, your broker can help you through the process of ending that relationship and finding the auto insurance company that better suits your needs.

Captive Agents
These are exclusive agents that represent only one insurance company.  These agents have a better understanding of what their company can offer than a broker does.  As an agent for a specific company, they are also more interested in the customer service side of the business, as they are held accountable to their ability to not only find new customers but to hang on to the current ones as well.  State Farm is an example of an insurance company that uses dedicated or captive agents.<

Each type of insurer has its own advantages.  Making a decision between these three is a matter of personal preference - no one type is better than the other.  Using a broker makes it easier to find multiple auto insurance quotes while you are shopping for prices.  Some direct providers offer cheap car insurance because their cost of business is lower.  And, captive agents try to build relationships between their customers and the company they represent.

Now comes the last step of the process of how to buy auto insurance - find best companies, find the right coverage, and get good quotes.The only way to be certain to get a good quote is to receive several quotes from different companies.  Dealing with an independent broker makes this a little easier.  At the minimum, anybody shopping for insurance should get three quotes, possibly more if possible.  The more quotes you get, the better the chance that you find the best price on just the right amount of coverage for your needs.