How to Research an Insurance Company before Buying

Most people looking for auto insurance want to save money. Although that is certainly an important factor, you should still ensure you’re properly protected in the event of a car accident. The following tips can help in not only knowing what to look for when buying car insurance, but ways to research insurance companies that serve drivers in Arvada and around Colorado.

Tips on Researching a Company Before Buying an Auto Insurance Policy

The first thing that potential policyholders want to know about when searching for a new insurance plan is often cost. Yet it’s also important to consider the reputation of the insurer, customer satisfaction, discounts available and more.

Ask family, friends, neighbors and coworkers for recommendations. Research should begin with people you know. If a friend or family member recommends a company, take that suggestion first. At the same time, keep in mind that one person’s negative (or positive) experience doesn’t necessarily mean it will be the same for you.

Compare quotes and ratings. There are numerous sites that can help when comparing quotes and insurance company ratings. Insureme.com allows users to compare premiums. It also includes an expansive list of insurance companies.

J.D. Power offers the 2013 U.S. Auto Insurance Study, measuring customer satisfaction. Scores are provided and broken down by regions. Another online resource is MoneySavingPro.com. This site provides 2013 Best Car Insurance Companies Reviews & Ratings. They also include a list of pros and cons for each company.

Check rates annually. Things can significantly change in a year. So it’s a good idea to annually compare insurance rates between your current company and at least three others.

Know what coverage you need. Every motorist must purchase the coverage mandated by his/her state. In Colorado, the minimum amount of liability insurance is $25,000 per person for bodily injury; $50,000 per accident for bodily injury; and $15,000 property damage per accident.

Keep in mind that the minimum may not be enough to cover all damages in an accident. Colorado law requires insurers offer uninsured/underinsured motorist coverage (UM/UIM) in the same amounts chosen for bodily injury liability. UM/UIM can only be waived, in writing, by the customer. Insurers are also required to offer a minimum of $5,000 in medical payments coverage. It is automatically added to the policy, unless the insured opts out.

In offering these and other types of coverage, insurers should include an explanation of what they cover and how they might help protect the insured financially. Companies that don’t or won’t take the time to explain this information might not be the right choice.

Utilize other resources. There are many other resources that consumers can use to access information about an insurance company. The Better Business Bureau is one. It provides information about a company, including complaints. Another resource is Colorado’s Department of Regulatory Agencies – Division of Insurance, with its main goal being to protect consumers.

In addition to ensuring you’re properly covered, finding good car insurance from a reputable company can also help avoid instances of bad faith on behalf of an insurer. We hope you’ll never find yourself in the situation, but if you suspect your insurer is acting in bad faith or you simply need help pursuing an auto accident claim in the Arvada area, call us at (303) 300-5060 to talk to D.J. Banovitz about your case.