Which Car Insurance Is Best? How to Choose the Right Company For Your Needs

If you’re new to driving or are looking to switch auto insurance companies, you may feel a little overwhelmed by your options. Dozens of car insurance companies exist across the market that offer different premiums, discounts, coverage options, and benefits. Choosing just one car insurance policy from one company can feel daunting.

Thankfully, when you work with an insurance agency like Encore Insurance, you can feel confident that your insurance policy will suit your needs. However, it never hurts to do some research ahead of time to identify what factors may affect your insurance and what benefits you’d like from a car insurance company.

Read on to learn more about determining which car insurance is best for your needs.

Factors to Consider When Choosing Car Insurance

Your car insurance plays an essential role in your financial health. You want to choose an affordable policy that does not overwhelm your budget each month. However, your policy also needs to include the right coverage to help you move forward if you ever become involved in an accident.

Before you settle on a car insurance policy or company, we recommend considering the following factors that may impact your decision.

Legal Obligations

Most states require you to carry minimum insurance coverage when you own and drive a car. In Michigan, you must carry minimum liability coverage of $50,000 / $100,000 / $10,000.

With these minimums, if you were liable in an accident, your insurance for bodily injury would cover $50,000 per person, with a maximum of $100,000 per incident. You would also have $10,000 available to cover damage to another person’s property.

Any insurance company you choose will know these minimums, so you don’t need to worry about meeting them when selecting an insurance provider. However, you should know that your liability coverage cannot dip below these minimums.

Budget

Car insurance premiums can range in price dramatically. Before you choose an insurance policy, we recommend considering how much money you can set aside each month for your insurance. If you have a tight budget, you may need to lower your deductible and coverage amounts.

Driving Habits

Before choosing a new car insurance provider, you should also consider your driving habits. Most insurance companies shape their premiums around how you use your car. They consider:

• Whether you use your vehicle for work or just for personal reasons
• How often you use your vehicle
• Where you park your car
• How many accidents you have been in
• Whether you have any negative items on your driving record

Considering the above factors can help you gauge how affordable your insurance premium will be. For example, if you use your car to drive for Uber or Lyft, you’ll need specific rideshare insurance, which is pricier than traditional auto coverage. Meanwhile, if you have completely clean driving records, your rates should be pretty reasonable.

Vehicle Type

The type of car you drive also impacts your insurance rates. Typically, the more your car is worth, the higher your car insurance rates will be. However, insurers also consider the following factors when determining your premium:

• The likelihood of theft
• The vehicle’s engine size
• The car’s safety record
• The cost to replace parts in the vehicle

If you have a new, rare car, your insurance rates may be relatively high. As a result, you may want to spend a little more time than usual searching for the most affordable policy. 

Tips to Choose the Best Car Insurance Company

Now that you’ve considered a few factors that may impact your insurance coverage decision, you can go into your car insurance search with all of the knowledge you need to make an informed choice.

Your next step is to find the car insurance company that offers the best experience for your needs. Of course, you’ll want to choose a company with the right coverage options and affordable prices. However, other factors may impact your overall experience with the company.

Here are a few tips for choosing the best auto insurance company for you:

Consider Financial Strength Ratings

Insurance companies receive financial strength ratings that indicate their ability to pay claims for their policyholders. If a company is not financially sound at any given time, it may not have enough funds to pay claims, making its insurance coverage useless.

The S&P rates companies on a scale from AAA — the highest financial strength rating — to D — a rating that indicates a company is likely to default on its policy obligations. You can typically find a company’s rating on its website.

Examine Customer Satisfaction Ratings

You should also review customer satisfaction ratings when choosing an insurance company.

The best insurers make it easy to file a claim, are available when you need them, and provide excellent customer service. If you find that a company has a lot of poor customer reviews, it may not offer high-quality services.

Review the Insurance Experience

Some insurance companies offer more pleasant customer experiences than others. Generally, most consumers want their insurance processes to be as seamless and stress-free as possible. If you’re like many, you probably only want to think about your insurance when you need to file a claim.

As a result, looking for companies that offer seamless insurance experiences is essential. We recommend choosing a company that checks the following boxes:

• Offers digital tools that allow you to view and adjust your policy
• Allows you to make automatic payments or pay premiums online
• Provides a quick and easy process to submit claims
• Has generous customer service availability

Work With an Insurance Agency

Finally, working with an insurance agency is an excellent way to choose the right insurance policy and company for your needs. An insurance agent can break down all of the elements that make up car insurance and help you determine the coverage options you need. Then, they can quote you with several companies and find the most affordable premiums.

At Encore Insurance, we specialize in helping Michigan customers find which car insurance is best for their needs. Contact us today at 248-466-0200 to request your free quote.