by Lauren Kiefer

Created on: November 05, 2008   Last Updated: January 13, 2009

Purchasing car insurance can be a strenuous process. Once you've considered the amount of coverage you need and the amount you can afford, where do you go from there? My primary source for any major investment always beings with recommendations. Family and friends local to your area will be able to provide examples of first hand experience with different insurance companies regarding claims they've had to file and the level of customer service they've received. Though recommendations are always a good starting point, there's still a lot work to be done.

Start compiling a list of companies from your sources; recommendations, internet searches, amusing commercials and advertisements in the yellow pages. The easiest way to track your research is by creating a simple spreadsheet. Once you complete column one (list of potential providers), it's time to head to column two, the initial price quote. Your initial quotes can easily be done online through different company websites, such as Geico, http://www.geico.com/ or All State, http://www.allstate.com/. To ensure that your initial quotes are comparable, make sure the same policy options and car and driver information are selected for each quote. It's also a good idea to keep a print out of each along with other research.

Once done with the initial stages, the list of potential insurance providers will inevitability shrink. Now it's time to compile your list of mandatory questions. Aside from policy coverage and price, some of the things to consider when choosing an insurance provider are:

A. What the insurance company's rating is, which you can do through companies such as A.M. Best, http://www.ambest.com/ or Standard & Poor's, http://www2.standardandpoors.com

B. When doing repairs will they use new or after market (used) parts? Do they offer an option?

C. Do they use specific repair facilities or would you/could you choose your own? Where are the closest direct repair facilities?

D. Do they guarantee a specific turn around time for appraisals on claims?

E. Will they send an appraiser to you or will you have to go into a shop for an estimate?

F. Where is the nearest claim center?

G. Would you be working directly with their company or be assigned to an agent?

H. What is the standard policy term?

I. Are their discounts for paying the entire policy up front rather then arranging monthly payments?

J. Do they have an early cancellation fee?

K. Will you have a person that you can call and speak with directly or will your calls

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