Discover How to Find the Best Coverage Possible
All Colorado drivers must purchase auto insurance, but many people pick an insurer based entirely upon cost. Choosing an automobile insurance company should involve much more than going with whoever offers the lowest premium.
The premium is only one of many factors that should be considered when shopping for auto insurance. Read on to discover what else you need to consider when shopping for your auto insurance needs.
Determining Which Company Is the Best
Insurance companies are not all alike, and some score significantly higher when it comes to customer service and paying claims. According to a rating of the best car insurance companies published by NerdWallet, Amica received the top rating, based on price, customer service, and a high degree of client satisfaction with the company.
Checking On Insurance Licensure in Your State
Insurance companies need to be licensed in the states that they offer insurance for sale, so you should always check that you’re buying coverage from a Colorado-licensed insurance provider. Check each potential auto insurer via phone or online with the Colorado Division of Insurance.
Choosing the Right Coverage Rates for Your Needs
Automobile insurance coverage comes in many forms, including liability, comprehensive, collision, medical payments, and uninsured/underinsured (UM/UIM). You will need to understand and be able to differentiate between these auto coverage limits before you can make an informed decision. Keep in mind that the minimum amount of insurance coverage required in Colorado is:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $15,00 per accident for property damage.
Colorado insurers are required to offer UM/UIM coverage equal to the amount of bodily injury liability limits, as well as $5,000 in medical payments coverage, although you can opt out of med pay (in writing) if you choose to do so.
Ensuring the Financial Stability of Insurers
The financial stability of an insurance company is an important consideration when shopping for automobile insurance. Financial soundness helps determine whether or not the company will be able to afford to pay any auto accident claims you may submit, particularly in the case of a smaller, lesser-known provider. You can research the financial strength of insurance companies at the Standard & Poors, Moody’s, A.M. Best, or Fitch websites.
Investigating Customer Service Complaints
There is no shortage of customer complaints about insurance companies, but consumers that have actual issues with an auto insurance company will typically file them with the state department of insurance. Colorado’s Division of Insurance provides an online index of complaints received about insurance companies, and lists them at one of three levels: having an above, below, or an average number of complaints compared to other companies. The complaint index also compares the number of complaints filed against each company with those of the rest of the industry, taking into account the size of the company.
Comparing Auto Insurance Rates
Once you’ve narrowed your choices down to five or less, rate comparison can begin. You can obtain insurance quotes online, either from a website that publishes quotes from a variety of insurers, or you can submit your information to each respective company’s website. Keep in mind that insurers who offer the biggest discounts sometimes also charge the highest rates.
Reviewing Rates and Coverage Before Policy Renewal
Choosing the right auto insurance firm is only the first step to securing your vehicle. The rest involves reviews and research before renewal. Perform an annual rate check to ensure you continue receiving the best deal possible.