You want it, you need it, but where do you buy it?  To obey the law, if you own and operate a car, you have to buy car insurance.

You have many different companies to choose from when you need to buy car insurance.  Sometimes the number of available choices can make it overwhelming.  We will do a quick review for you.   There are also many different ways to evaluate a car insurance broker or agency.   We will also review one evaluation method often overlooked by most consumers.

Decisions About A Car Insurance Company

Where To Buy Car Insurance:

• Car insurance can be purchased through a car insurance agency or a car insurance broker.
• A car insurance agency usually sells one company’s insurance product.
• A car insurance broker usually can sell the insurance products from many different insurance company’s.  
• Car insurance brokers can sometimes be more flexible when your premiums increase.
• Whether you use a car insurance agent or broker, be sure to find out if they use your credit score to determine your premiums.
• Not all but most insurance companies do use credit scores as a line in the sand for premium differentiation; and you won’t know this unless you ask…be sure to ask.

Use The Car Insurance Rating To Evaluate:

If you are confused about how to evaluate a car insurance agency and a broker, you can look at the car insurance rating for help in making that decision.

• The car insurance rating will tell you about the financial strength of the car insurance company.
• The purpose of a car insurance rating is not to judge the car insurance agency or car insurance broker.
• The purpose is to tell you about the financial strength of the insurance companies that the agency or broker represent.
• A car insurance rating will tell you everything you need to know about the insurance company.
• There are 4 independent rating companies.
• These independent companies generate reports with very detailed information about insurance companies.

• You should check the car insurance rating of your insurer on an annual basis.
• Depending on the economy or losses or industry changes, your insurer’s car insurance rating may change; which is why you should check your car insurance company’s rating once a year.
• The reports these independents generate can tell you a great deal of important information.
• Here is a list of information you can get from a car insurance rating report:  1) the insurance companies 5 year rating history; 2) the insurance company history; 3) management information; 4) company profitability and 5) financial statements… such as balance statements and income statements.

Insurance can be confusing enough, make it easier on yourself by using the information from car insurance rating services as one tool in your decision process about using a car insurance agency or car insurance brokers.