When buying insurance, make sure to understand the terms and conditions of when the insurance company has to pay for accidents, not just the coverage limits.
When there are no accidents, a person may not really know first-hand what his/her insurance really covers because the insurance company is happy to just accept premium payments.
Realize the person who sells insurance is not the person a consumer will be dealing with when an accident occurs.
When an accident happens, a consumer files a claim for coverage with the claims adjusters.
Claims adjusters investigate the accident, and authorize the payment of claims.
If a consumer has a dispute over whether a claim should be paid, work with the claims adjuster, not the insurance sales person.
A consumer should be careful when communicating with the claims adjuster because the adjuster will be investigating who is at fault for an accident in deciding how much to pay.
When buying insurance, investigate the finances of the insurance company.
If the company goes out of business, whether a consumer has recourse depends on the insurance contract's terms and state laws.
While the insurance sales person may have a great reputation, it is references of the insurance company that matter more.
Contact local or state consumer protection offices, state Department of Motor Vehicles, local Better Business Bureau, or local automobile dealers association to find out if the insurance company has any public information to research.
Find out how long the insurance company has been in business, and see if the company has the financial resources to meet contractual obligations.
Contact the State Insurance Commission to research the solvency of the company and the filing of any complaints.
The price of auto insurance is based on the car make, model, condition such as whether new or used, coverage limits, and driving history of the consumer.
A consumer may need to pay a deductible each time the car is serviced or repaired if there are multiple accidents during the insurance coverage period.
Find out what the insurance covers when in an accident by reading the exclusions.
Find out where repairs may be made when in an accident.
Some insurance companies require people to go to specific mechanics because they have bargained deals with those repair shops.
Find out the hours for the accident reporting service.
It is best to go with an insurance company that has 24 hours access because accidents can happen at any time.
The quicker a consumer can report an accident, the more likely any evidence of fault for an accident will be preserved.