Many drivers stick with their insurance company through thick and thin. In spite of the number of people who now use comparison sites, it is often the case that people don’t change unless they have a significant reason to do so. However, with the strength of competition among car insurance companies, many will do what they can, within reason, to acquire new customers through benefits, discounts and promotional rates.

However, not all car insurance companies are equal and the reason for low prices may not always just be a good deal. Sometimes costs are cut in important areas, either in terms of cover or service. All drivers can look out for certain potential issues when choosing their cover.

•    Is the insurer reputable? Some smaller insurers take advantage of the exposure granted by price comparison sites to get their deals in front of large numbers of potential customers. However, their lack of experience can count against them – the low premiums may not be sustainable. There are certainly deals to be found with previously unknown insurers, but it is well worth finding out more about them before signing a contract. This can be done in numerous ways, but one of the most reliable is the state’s department of insurance website. Every state has one and usually lists complaint rates for every registered company in the form of the number of complaints received for every thousand claims.

•    Does the insurer work with reputable workshops? Even larger insurers can occasionally work with workshops that drivers would not personally choose. A good insurer will acknowledge that the work undertaken reflects on them as well as the shop itself, and will not look to cut costs extensively. However, for the most peace of mind, it is best to enquire as to which workshop is used, or whether there is a choice. Further background checks can then be done on the insurer’s partners.

•    Can the company offer further discounts? As would be expected, discounts make up a large part of finding the cheapest quote, but there are many types to consider. Drivers should consider whether their discounted rate is for new customers only or whether it will continue in the future. Drivers should also enquire as to whether the insurance company covers other things. By combining home insurance with car insurance, drivers could save even further off both policies.

•    How does the insurer operate? Large insurers’ work 24/7, offering support and assistance every hour of the day. Some smaller companies simply do not have the resources to do so. Both can be liable to slow claims processes either again due to resources, or due to their own policies. As part of the background checks on an insurer, it can pay to look into genuine testimonials from customers to get a feel for how the company treats its customers when the contract has been signed.

Car insurance companies are as diverse as the drivers that use them. Those looking for a new policy should not simply rely on reputation or select the first name that comes up on a comparison site. A little time spent carrying out some independent assessment can lead to greater savings and a good relationship for a long time to come.