Car insurance companies, like other companies, are in business to make a profit. They do this, hopefully, by taking in more money in the form of insurance premiums than they pay out in the form of insurance claims. If an insurance company offers very low car insurance rates but doesn't pay fairly on claims or goes out of business because claims paid out exceed premiums coming in, policyholders are left in the lurch. Because of this, it's important to properly evaluate car insurance companies promoting especially low car insurance rates.
There are various ways to get a good indication of an insurance company's reliability, financial stability and the manner in which they treat and service their customers. One way is to talk to friends, neighbors and relatives about their personal experiences with their own insurers. If you know someone who has recently had an accident you can get some insight into how their claim was handled and the opinion they have formed of their company's level of service and attention to detail.
Going online and doing a search of ratings for car insurance companies can also bring a wealth of information. Many sites offering ratings for these types of companies will include reviews and ratings from individual policyholders who have had personal experiences in dealing with specific companies. Someone who has had an accident, made a claim and then had to deal with the red tape involved with a specific company can provide a wealth of information to a prospective customer of this same company.
It's also possible to search the Internet looking especially for companies offering low car insurance rates and obtain a listing of these. Going, then, to these specific companies' web sites can also produce user reviews that may provide some valuable insight, although these may not be as unbiased as those coming from a site comparing all the top companies rather than one single provider.
International rating organizations such as J.D. Power and Associates, A.M. Best and Standard & Poor's are all good resources to tap into when comparing the stability and customer-quality ratings of various insurance providers. These companies all have easily accessible web sites where one can find much information about car insurance companies. They can be helpful in trying to evaluate which companies offering low car insurance rates have the best reputations and track records at paying claims in a fair and timely fashion. You can also find out the exact financial ratings of each insurance company currently doing business.
An insurance quote is only as good as the company offering it. Car insurance companies are involved in heavy competition. Pick a good one with good rates.