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Comparing car insurance policies

With online insurance, you don't have to sit in a broker's office for over an hour (happened to me), just to get rates from obscure carriers. Now you can compare the most competitive auto insurance rates backed by a reputed brand. Your mission should be to increase your coverage limits, lower your car insurance cost, and go with the most customer friendly carrier.

#1 Increase your car insurance limits

#2 Lower your car insurance cost

#3 Pick a car insurance carrier

Increase your car insurance limits

If you've calculated your coverage needs, you've already determined your limits. We recommend your bodily injury liability limits be $100,000 per person and $300,000 per occurrence. Most people opt for their State's car insurance minimums, that may not be near enough in a serious accident! Unless you have an older car, consider increasing your limits on comprehensive coverage. When comparing a car insurance limits, it helps to know what you are reviewing:

Bodily Injury Liability covers the insured for injuries caused to someone else. Medical Payments or Personal Injury Protection (PIP) covers the insured for the treatment of injuries to the occupants of the policyholder's car. Depending on your individual policy Personal Injury Protection can cover medical costs, loss of wages and the replacement cost of providing services normally provided by the injured person.

Property Damage Liability covers damage caused by the insured to someone else's property. Collision Covers damage caused to the owners car from a collision caused by another car or other object.

Comprehensive covers damage caused to the owners car from risks such as fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion.

Uninsured Motorist covers the treatment of the policyholder's injuries as a result of collision with an uninsured driver. Underinsured motorist coverage can also be included in an auto policy. Underinsured motorist coverage comes into play when an at-fault driver has auto liability insurance, but the limit of insurance is inadequate to pay for your damages. Each state requires that you have certain types of coverages with minimum liability limits.

Most carrier offer optional coverages aka endorsements:

• Emergency Roadside Assistance
• Auto Towing Service
• Auto Glass Replacement
• Car Rental Reimbursement

Lowering your car insurance cost

If you've compared prices online, you've already taken a huge step in lowering your costs. Make sure the company has credited you with any special discounts you are entitled to. You might be considering leaving your current insurance company, especially if they have significantly increased your rate. First determine your coverage needs. Then compare that same combination of coverage through multiple carriers.

Make sure your price was calculated with your riving record, SSN, and claims history. You do not want surveys or estimates.

Pick a car insurance carrier

Only people from the future will 100% know if a carrier will pay your claim. But after price, you can research carriers through this website, JD Powers, and Forrester's reviews of insurance companies. Don't waste time with insurance company financial ratings, unless you are dealing with a small unknown company (which you shouldn't be).

JD Powers has some useful ratings for how fast carriers settle claims. If your calling around to various brokers, you may find out that dealing with them turns into a long drawn out process. The longer they keep you in their office, the more likely you will want to "just get through it" and buy a policy. Does the carrier offers the features you need:

• Prompt service after an accident
• A replacement vehicle or rental
• Covering your legal costs
• Collect and delivering your vehicle after a crash
• Quickly paying compensation on car policies
• Does the company hire independent adjusters who have only one loyalty: to the insurance carrier?
• Easy contact, not a tedious phone menu or playing phone tag

Find out about the claims-paying practices of the car insurance company. You need to do this by gong to your state department of insurance or google for example "Geico claims complaints." Come companies do publish glowing reviews of themselves but none will publish fake negative reviews. If you know a friend or family member has dealt with the company in the past, that doesn't mean you will get the same treatment or adjuster in case of an accident, but it can tell you about their claims process.

When you go to your state's Department of insurance page you want to see if the company settles claims quickly? Is there a frequency of complaints in one area? Does it refuse to pay certain claims? Carriers can have problems with low ball "estimates," sales practices, claims, billing, advertising, and be hard to contact. All these areas should be reviewed.

The power of change

You've probably only changed insurance providers a couple times because it's a hassle and your coverage is in already in place. But shoppers are changing providers all the time to get higher limits and lower rates. I predict the the stress and time of changing carriers is worth it IF you can cut your costs and improve your limits. At least you will be satisfied with the savings, until claim time!

In some states, medical payments coverage and uninsured/ underinsured motorists coverages are voluntary coverages. In others, they're mandatory For a start most search engine results are totally useless because most car insurance sellers only cover one country - probably not yours.

Web-based car insurance shopping will allow you to cherry-pick the lowest car prices get the most coverage. It really helps determine if your insurance price really is the "best." But once you invest the time and verify you can get more for less, make the change to realize those savings!

Written by Craig J. Casey

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

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