How can the average person who wants to buy car insurance ever know which company is the best? That sounds more like a bad dream than a way to compare prices. There are insurance companies in every big city and suburb in the United States. There are either independent agents who work for more than one insurance company or exclusive agents who only work for one company. These are insurance companies that get their products in front of customers through agents.
Some insurance companies have decided to do away with agents and sell their products through the mail, the phone, or the internet. Property and casualty insurance companies are always fighting for market share. Insurance companies have to walk a fine line between making new purchases and spending money to run their businesses. This information is important for the consumer because they are the ones who decide who wins in the end. The best insurance company for you might be very different from the best insurance company for your next-door neighbour. Time and experience can help you choose the right company for you.
Things to think about...
- Insurance Agent The car insurance agent has been the best way to sell insurance in the whole history of insurance. The neighbourhood agent knows the area well and is easy to reach. This is very valuable to a lot of people, especially those who want advice and counsel from a real person.
- Distribute in a direct way This is the name we will give to insurance companies that sell insurance through 800 phone numbers, the internet, and the mail. They sell directly to you and take care of your needs through call centres. The direct distributor says that their prices are lower now that the agent is gone.
Once you know how you want to be taken care of, you can start looking for that kind of insurance company. AM Best is a rating guide you can find at your local library. It tells you how strong each insurance company's finances are.
