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What Car Insurance Ratings Mean for You

Having a list of car insurance ratings saves you lots of time and guesswork. You now know which companies are on top of the market and can narrow down your search to those who have proved to be worthy of their name. Let us deep a bit further into what car insurance ratings mean for customers.

Looking up quotes online gives you instant results. Long forgotten are those times when you had to pick up the phone and call a list of car insurers, wait to be put through to a live assistant, spend another fifteen minutes to explain the kind of policy you want and then wait for another day or so for the insurer to get back to you. All major insurance companies have user-friendly web interfaces where you plug in your details and get a quote instantly, and the whole process doesn't take more than a couple of minutes.

Financial Ratings

After you get a quote from your chosen insurer, it's highly advisable to look up the company's financial ratings. As already explained in the article about car insurance ratings, there are several independent evaluators who assess an insurer's abilities to meet contractual terms, namely to reimburse you after an accident. Never go with shady companies, or you might get burned.

A company with a high financial rating (B or higher according to A.M. Best's grading system) should be trustworthy and give you some peace of mind that:

they won't run off with your money. Unfortunately there are some fake car insurance companies out there that will cash in your first premium and disappear. This will never happen with a highly rated insurer; they won't try to pull any "stunts" when you file a claim. A company worth billions will not compromise its reputation on a $200,000 claim, while this might be a huge amount for one with a few hundred dollars in equity.

Survey Ratings

You will also want to see how other customers view your chosen insurer. Again, as already explained, JD Power's rating system shows you what kind of experience others have had with this insurance company. This indicator is broken down into several criteria:

  • Pricing: how cheap or how expensive are the insurer's policies?
  • Range of offerings: do they offer any policy you may want? Do they focus on any niche?
  • Billing process: do the bills get to you on time? Are they clear and straightforward? What are the payment options? Do they have hidden fees and charges?
  • Availability of the support center: Are they open 24/7? Do they hule a toll-free number? Can they be reached online?

These are the main reasons why car insurance ratings are important for you, as a customer. Make sure you look up your choseulinsurer's standings before you sign a new policy or renew an existing one.

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