Wanting to choose the right insurance company, we have to check out an insurance company’s financial well-being before purchasing their products. There are many things to consider when choosing which company best fits your needs and your budget.
1. Call the company for a policy quote.
It is important to start with prices and coverage limits when evaluating an insurance company
2. Ask questions.
The agent knows the company better than
anyone else. Make sure you are clear about what you expect of your
policy and the coverage you need. If anything is unclear about the
company’s policies or procedures, question them.
3. Check the company’s rating.
There are businesses that independently
analyze the financial strength of a broad range of companies. They rate
companies based on their capital, earnings, and ability to pay claims.
Standard & Poor’s, Moody’s Investor Services, A.M. Best, and Fitch
Ratings analyze the health of financial institutions, including
insurance companies. Their ratings are usually available online or in
your local library. You can also obtain rating information over the
phone. As a general rule, you should only consider insurance companies
with at least an “A” rating; these are financially stable companies.
4. Call your state’s insurance department
Call them to learn about any complaints
that have been filed against an insurance company. If there are
consistent problems with claims or poor service levels, this is cause
for concern, and the company should be avoided.
Check for any reviews or analyses
conducted by Consumer Reports or J.D. Power and Associates. These are
excellent resources for customer satisfaction ratings and price
comparisons.
5. Consult friends and family.
If they have used an insurance provider
you are considering, ask them if they have any positive or negative
things to say about their experience, and if they would recommend that
insurer to a friend or family member.
