If you're reading this page, you've already made the decision to buy some kind of insurance - perhaps for a new home or car, or possibly life insurance just in case something should happen to you - but you're a bit unsure about which insurer is the right one for you.
Here at InsuranceSpecialists.com, we completely understand that uncertainty. After all, with so many insurance providers out there, choosing one is somewhat daunting.
While we can't look into a crystal ball and tell you definitively that Company X is the one you should choose, we can give you some tips to help guide your decision.
There are five main factors that you should consider when picking your insurance company. They are:
- Licensing: As a general rule, you'll want to make sure that the company you choose is actually licensed in your state. Most of the time, insurers don't advertise where they're not licensed, but in our fluctuating economy, some insurance companies are choosing to leave states where they perceive a higher-than-average risk. You can check licensing with your state's department of insurance.
- Financial Stability: Since the whole point of buying insurance is to provide yourself and your family with financial protection, be certain that the insurer you choose is stable now, and has been for many years. There are several independent rating agencies that score insurance companies, but you can also check with your state's department of insurance.
- Pricing: While the cost of a policy should never be the only factor in selecting an insurance company, it's certainly an important factor. We recommend that you always get quotes from at least three different insurance providers before you make your decision - and don't be afraid to ask questions if you don't understand the quotes, or if the quotes don't seem to be offering the same coverage types. Sometimes what seems like a better price is really a less comprehensive policy.
- Customer Service: Whether you're merely asking a question before you commit to purchasing a policy, or are trying to change your coverage, file a claim, follow up on a filed claim or anything else, you should be treated with courtesy and respect, and your needs should be met with speed and efficiency. You might want to check a national claims database to see if what, if any, complaint information might be registered, or check with your state insurance department.
You can also check with the Better Business Bureau.
- Comfort: While this is the least measurable factor, it's also the most important, because even if a rate is wonderful, if you get a "bad vibe" from the company or agent, you may want to look elsewhere. Also, make sure that you choose an insurance company that works the way you do: if you don't keep typical hours, find a company with 24/7 customer service; if you like to do everything online, find a company that has a user-friendly web interface.
Choosing an insurance company can be just as important as selecting your child's school, picking your new neighborhood, or finding the perfect car. Read reviews, do research on financial history, and trust your gut, and, at the end of the process, you'll have a policy that fits your needs from a company you trust.