Connecticut Car Insurance Companies
When shopping for car insurance in Connecticut, consumers often put price first and fail to research the reputation of insurers licensed to do business in the state.
While it is very important to consider both your budget and the costs for insurance in the state, it is important to feel like you are buying with confidence by researching every company that you are considering.
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As you research a Connecticut insurance company, you should consider their licensing status, their financial rating, and their reputation in the industry as a whole to make the best choice.
Read on, and learn more about the steps that you should take to conduct research on insurance companies.
Why Low Prices Are Not Always a Good Thing in the Insurance Industry
Many people do not associate the saying "You get what you pay for" with the insurance industry, but this saying actually does apply. All consumers want to find a company that offers fair and competitive pricing, but when the cost of coverage is too low it can actually be a bad thing.
To understand why low premiums can be a red flag to consumers, you must understand how the industry works.
Insurance companies in Connecticut establish their own rates, but these rate filings must be approved by the Connecticut Department of Insurance to ensure that the rates are justified.
When preparing for a rate change, the company must look at past trends in claims, potential future losses and how the environment can affect the company's expenses. The premiums that are collected by the company are used to pay for projected claims throughout the year.
If the company does not assess risk correctly or collect adequate premiums, they are at-risk of going insolvent. These companies often need to be bailed out or will close their doors for good in time. They are also known for attempting to low-ball claims payments and to deny claims for unfounded reasons.
This makes the process of collecting on a claim much more difficult than it needs to be. As you can see, choosing a company that charges low, low premiums can be dangerous if they are not charging based on the risk that a client presents.
This is why all residents of Connecticut should do more than just request quotes to decide which Connecticut insurer offers the best financial products.
A List of the Top Auto Insurers
Now that you understand how the industry works and why a low premiums could be a red flag, you can start to do your research so that you can sift through all of the insurers in the state.
Using a list of the top ten insurers in the previous year can help you start your search for a quality insurer.
According to the data, State Farm, Berkshire Hathaway and Allstate top the list of top writers of auto insurance in 2013. Additionally, Progressive, Farmers, USAA, Liberty Mutual, Nationwide, American Family and Travelers were all rated as top insurers.
Use this list and conduct additional research to find a quality auto insurance policy.
What to Look for in a Quality Car Insurance Company
As you go down the list of the top auto insurers in the nation, you may be wondering what separates one from the other. Some companies have very effective marketing campaigns that target a growing audience and others have managed to keep their loyal clients and write insurance for their children as they buy their own vehicles and get married.
You will need to identify when insurer offers the best rates for individuals in your market niche while still maintaining their reputation. Here are some of the key factors to consider when you want to find a good Connecticut insurer:
Financial Strength and Stability
One way to determine if premiums are competitive or too low for stability is to review the company's financial strength ratings through sites like A.M. Best. An A.M. Best rating uses credit ratings, financial reports, and market share data to assign a letter grade to licensed insurers in CT and all other states.
By using data that is available to the public, this third-party credit rating agency can help all wise consumers make the best choices as they shop for coverage.
As long as companies have been able to meet their contractual obligations and financial obligations, they should be classified as a strong and stable company that you can feel confident to do business with.
Check the Insurer's History of Complaints
Did you know that you can search for active complaints against a licensed insurer? Complaints that have been filed with the Connecticut Insurance Department are public record. They can be accessed by visiting the Department's website and going to the Complaint Data link.
Here, you will find a list of the active and closed consumer complaints that have been filed against the licensed company.
You will find the date of the complaint, when it was closed, the reason for the complaint, and the result or disposition. If you see a pattern with a specific company and a specific reason for the complaint, it may be wise to avoid the company so that you do not experience the same problem.
You may also want to look up the licensing status of the company through the website to see if it is active or suspended.
Customer Satisfaction Rankings
When you purchase any type of mandatory insurance, you are buying protection that you hope that you will never have to use. While you are paying for the option to use a financial product in the event of an accident, you are technically paying for service until you have a need to file a claim.
You want to receive the best possible service in exchange for your premiums, especially when you never use your insurance. The best way to do this is to reference customer service rankings to see which companies have the best reputations in the industry.
Look for unbiased reviews on the company that you are interested in online. Not all consumers will contact Consumer Affairs. Many simply post their complaints online to avoid a dispute process. Reference the official complaint data and other less official platforms to see what other consumers have to say.
Claims Processing and Disputes
You should not have to go through an arbitration process just to have a covered claim paid for by your insurer. If you file a claim that is covered based on the terms written into your policy, you want to have peace of mind in knowing that you will not be forced to take action against your company just to receive the compensation that you are owed.
Read claims processing reviews and see if the company has fair processing practices. You should also find out if they make fair offers and if they settle claims in a short period of time.
There is no reason to do business with a company that is known to delay processing, deny claims or make small offers. This will only result in having to hire an attorney to collect what is due to you. In fact, data shows that policyholders who have resorted to hiring attorneys is on the rise.
Contact Methods and Hours of Operation
How do you prefer to do business? Would you like to call a call center to speak with a representative or would you prefer to speak with your own local Connecticut agent every time that you call in for answers.
Do you want to use the Internet to change your policy or would you prefer to speak with your agent face-to-face? Do you want to make weekday appointments in the afternoon or is it more convenient for you to conduct business in the evening on the phone?
You have to consider what is important to you and what is offered by the insurance company. Not all companies are targeting clients with the same service preferences.
What lines of insurance does the company offer?
Would you prefer to buy many different lines of insurance through the same insurer or do you want to do business with a company strictly offering auto insurance? There are benefits to both.
If you do business with a company offering property insurance or life, you may receive premiums discounts for carrying multiple lines. You can also service the policies without having to make multiple contacts.
If you do business with a company that specializes in auto coverage, you may be able to purchase optional coverage that protects you for a very low rate. You can also cover rare vehicles.
Comparing the cost of coverage through several different Connecticut car insurance companies does not have to be difficult. By using an advanced quote comparison tool, you can enter your information once and receive several quotes from reputable insurers.
Do your research on each company, consider the price, and use your findings to make a final decision.
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