I see this question asked multiple times per day via social media: "What's the best car insurance company?", "Where can I get the cheapest insurance?", "Why are my rates so high?". A big misconception that a lot of people have, is that there is some amazing, superior insurance company that can out-beat all of the competition when it comes to pricing. I regret to inform you, that this isn't the case.
Insurance companies come in all different shapes and sizes, and with that, each one of them is looking for a different type of customer. The name of the game isn't to find the "best insurance company", but rather to find the insurance company that rates well with your given variables.
Insurance companies often use some of the following elements to determine your insurance rate:
- Driving Record
- Prior Insurance History
- Type of Vehicle
- Amount of Coverage
- Location of Residence
- Lapses in Coverage
- Marital Status
- And more.
As you can see, there's quite a few factors that can contribute to determining your auto insurance premium. The most efficient means of finding a policy that meets your budget, is to find the insurance company that has a rating system that aligns well with your given variables. For example: Company A might give better rates to people with higher credit, while Company B provides more affordable rates for drivers with lower credit, but a cleaner driving record. Figuring out which company is the best fit for you can be a long, tedious process; this is where insurance brokers come in. Unlike a captive agent, insurance brokers are permitted to do business with multiple insurance companies, not just one, creating an efficient way for customers to shop the market with little-to-no effort on their part, and also ensuring they're getting the best price available.
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What's the best auto insurance company for cheap rates?