How Do I Choose An Insurance Company?

How Do I Choose An Insurance Company?

To choose an insurance company can be scary for a first time buyer.

But, it can also be relaxing because once the choice is made, you can rest easy knowing your finances are protected. Once you have selected an insurer ad purchased the necessary policies (auto, home, life), hardships that may befall you or your family will be covered. Insurance is designed to manage your risks and reduce your financial losses. So, how do you choose?

Research

The first step to finding a good insurance company is to do some research. You should look for a reputable insurance company online or by speaking to your friends and family about their experiences. If any have a bad reputation for customer service, you can check those off the list. You don’t want to be shackled to an insurer who doesn’t respect your needs or ignores you once you submit a claim. Additionally, you don’t want to have to deal with a claim dispute or bring the matter to court simply because the company has poor customer service.

Two good sources that will help get a family off to the right start when finding an insurance company are A.M. Best’s for financial ratings and JD Power for service ratings.

A.M. Best conducts research to determine which insurance companies have the best records of paying claims, their operating performance, comparison with other insurers, and their overall practices and management. They are then ranked using a system in which “A++” is the highest score and “S” is the the lowest. A.M. Best publishes several different magazines which anyone can access, including BestWeek, Best’s Review (monthly), and BestWire (online). You can also watch videos on their website called BestDay. You can also check rating’s online at A.M. Best’s website.

JD Power uses surveys from customers to determine its insurance ratings. They ask questions pertaining to customer satisfaction and insurance product quality. They publish annual rankings which are available on their website.

Compare

Deciding on what coverage you need is important when looking for an insurance company. This will determine the company that fits you best. Choose three companies to compare prices and then you can find the most value for your dollar. With a comparison exercise you can really get an idea for what is out there in terms of insurance.

Keep in mind that your decision should be influenced by more than the bottom line. While price is important, you also need to compare the insurance premium, deductible, co-payments, and coinsurance with the amount of coverage included in the plan. Sometimes, commercial ads proclaiming their insurance products to be the cheapest on the market, does not mean they are the best. Take into consideration the quality of the insurance coverage and the customer service experience you would receive. Buying insurance from a faceless internet company may seem fast and easy, but what will happen when you actually need to submit a claim?

Double Check

Keep these factors in mind when deciding which insurance company to choose:

  • You have to be smart when you choose an insurance company; that company needs to be solvent and financially secure.
  • It also has to have a great customer service reputation, as that will be what you deal with most as a client.
  • You should check their complaint history and speak with family and friends as to their knowledge of different companies.
  • It is important to check the rates of the company and make sure they are at least adequate. A professional reputation for an insurance company is very important.

Speak to an Agent

The best way to choose an insurance company is to go through an independent professional insurance agent. They can give you advice to guide you through the tough and complicated process of choosing an insurance company. Those agents can recommend the best company to fit your desires for auto, home, and life insurance. The advice is priceless because it will be tailored to your own family’s needs.

Other Enhanced Insurance articles related to agents:

Fourteen Property and Casualty Insurance Company Influencers

Is an Insurance Agent Necessary

Benefits of an independent Insurance Agent; Not because I’m Dumb

How to Pick an Insurance Agent

Why Independent Agents Enjoy Placing Auto Insurance

Fifteen Reasons Why You Should Work with an Insurance Agent

How Do I Get a Copy of My Insurance Policy

How Often Should I Review My Car Insurance Policy

How Can I reduce insurance agency fees?

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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.

I am a recent college graduate with a degree in History and Secondary Education. Currently I am working as an 8th grade math teacher. I live in Madison, WI and am adjusting to the Badger State.

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