How to Choose a Car Insurance Company

With the advent of the internet, choosing a car insurance company is much easier than it used to be. If you are a first-time driver you will need to do some research and educate yourself on how to choose a car insurance company.

First and foremost, do not accept the first quote you receive from an insurance company. As the person responsible for paying the bill, it is in your best interest to get four to five quotes from different insurance companies. Remember that even if you are a first-time driver, the car insurance companies want to establish a long-term relationship with you and your future family members, so there is competition for your business.

It is wise to read about the different types of auto coverage offered and find the type that will best suit your needs before you purchase a policy. You should know what the terms collision, comprehensive, liability, personal injury protection, uninsured, and underinsured mean. Click here to learn about the different types of auto insurance available.

Any reputable insurance agent will be well-versed on state auto insurance coverage laws and should be able to steer you in the right direction.   Before you pick up the phone to call an agent, be sure to have handy all information necessary to apply: year, make, and model of the car you want to insure, the miles you drive to and from work and the people you plan on placing on the policy.  

If you don’t want to talk to an agent directly, you can always go online for car insurance quotes. However, be wary of fly-by-night operations that don’t have a solid reputation.  Here’s a list of reputable car insurance companies:

• Allstate
• American Automobile Association (AAA)
• Farmer’s
• Geico Direct
• Progressive
• State Farm

Additionally, companies such as A.M. Best and Standard & Poor's rate the financial strength of car insurance companies so you can research which have the wherewithal to pay any claims you might need to make.

Finally, a website such as Insweb.com will allow you to comparison-shop and buy your car insurance policy online, which will save you time.