by Michael VonFabian

Created on: July 07, 2008   Last Updated: July 10, 2008

With the influence of commercials like the cavemen or the bubbly female insurance clerk, it's difficult to know what to shop for when it comes to auto insurance. Here are some things to consider before buying:

1) What is the A.M. Best rating of the company. For those who don't know, A.M. Best is the insurance company watchdog. They rate companies on their financial strength and give them a rating each year. Look for a minimum Best rating of A-. http://www.ambest.com

2) What is the companies average claims payment turnaround? Do they pay their claims promptly and correctly?

3) Does the company you are considering have any complaints filed against them by consumers with your state's insurance department? Go to your states web site and look for the insurance department link to find out.

4) Do you get an insurance agent with the deal? An insurance agent can leverage more coverage and better premiums for you in the long run.

5) As respects coverage, be careful when selecting liability coverage. Most states offer at least 2 tiers of coverage that can affect your ability to sue. You will save premium but you may lose your rights in the event of an accident.

6) Find out the premium difference between a lower and higher deductible. What you will probably find is that the premium savings annually won't equal the amount extra you will have to lay out if you have an accident.

Finally, nothing is better than the personal recommendation of a close friend or family member. If you aren't sure what company is right for you, don't hesitate to ask someone you know and trust who they would recommend.

Car insurance doesn't have to be a major undertaking. Take some time and use the tools I've outlined and find a company that fits your needs and budget.

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