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Why Auto Insurance Companies Are Not All the Same

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Many people focus on rates when comparing auto insurance companies. However, the rate is not the only area where insurance companies differ. Below are some additional things that differentiate auto insurance companies.

Accident Forgiveness

The number of accidents in your driving history determines your auto insurance rates. Your rates go up if you are involved in an accident. Fortunately, many insurance companies have accident forgiveness programs that prevent rate hikes after an accident.

However, the terms and conditions of accident forgiveness vary by company. For example, some companies will offer you accident forgiveness if you have stayed with them for three years while for others it is five years.


There are dozens of auto insurance discounts that you can use to lower your effective cost of coverage. However, not all companies offer all of these discounts. The value, qualification, and also differ by company. For example, multi-car discount can range from 10% to 25% depending on the company.

Customer Relationship

Some companies like to automate most of their services while others still favor the human touch. The companies also differ in how fast they respond to queries and how strict they are with their terms and conditions. You have to choose for yourself which company offers the level of customer service you require.

Repair Restrictions

Many insurance companies have terms and conditions on the repair of clients' vehicles. For example, some companies dictate where you can fix your car after damage. The company may also specify which parts (OEM or aftermarket) you can use to replace damaged parts in your car.


Auto insurance coverage is not uniform across insurance companies; significant variations exist. Things like deductibles, coverage limits, excluded risks, and what is standard or not vary by company. Thus, you have to scrutinize offers from different companies (an agent can help you with this) to find the best coverage for you.

Lines of Insurance

Lastly, the lines of insurance offered by insurance companies also differ. This may be of concern to you if you want to take multiple lines of insurance with the same company, say, to enjoy the associated discounts. Maybe you need auto, commercial, home, and life insurance, and want them all from the same carrier.

As you can see, auto insurance comparison should not just be about rates; there are many other things to consider. You need to consider every aspect of the companies and policies that interest you. Contact services such as Crowel Agency, Inc. to start comparing your options.