Don't get burned with the wrong car insurer

I get emails all the time, my about an insurance shopper whose car insurance company took their money like clockwork, then became unresponsive or combative when there was a claim. Here are some tips to steer you away from those type carriers:

• Search Department of Insurance fines and actions against the car insurance company. The Department of Insurance is not going to conduct wide scale investigations over 1 complaint, they try and penalize bad behavior. Most also now post complaint ratios, but these vary from useful to insignificant, because they are only based on people that file complaints to the Department. Private Lawsuits and class actions are not monitored.
• Check out the BBB. Yes, insurers buy their way into BBB membership like everyone else, but the BBB rating is based on if they respond to your complaint. Responsive companies get a lower rating, even if the result of the complaint is not satisfactory to the consumer.

Cheap Car Insurance Checklist: SHOP AROUND! Multi policy discounts Drive safe Pay premiums semi annually Lower your mileage Multi car discount Garage your car Lower comprehensive on old cars

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• Talk to your local body shop and drop some names. Find out who they prefer and who resists payment.
• Look up the JD Powers ratings, they offer a free annual survey of major auto insurers that is excellent. You probably won't find your smaller regional car insurance companies there, but still worthwhile.
• Talk to several experienced brokers or agents. They are the ones that lose the overrides and renewals when customers go with another company because of claims issues or lousy customer service. If you are talking to a career agent, he should have a long term outlook and want to get his customers with the very best carrier.
• Define your service priorities. Someone may want a lot of hand holding and a personal visit. A local broker may be a good fit for that. Another shopper may want fast quotes and just a low priced policy over the net.
• Check out the companies reputation. Google any insurer, especially if you've never used them before. There are actually fake insurance companies out there set up by criminals set up just to take your money. They are caught 100% of the time. And 2 minutes on google could have prevented their spread.
• If you are a high risk driver, you will probably not be getting coverage with Farmers, Allstate, or State Farm Insurance. These are conservative carriers who carefully underwrite risk. Do not be upset if they deny your application. You are more suitable with a smaller local carrier who specializes in multi ticket or DUI drivers. And if you apply at a conservative carrier and lie about your driving record, they will find out and return your premium and cancel your coverage. So don't waste your time.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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