What to look for in an Insurance Company
Choosing the insurance company to serve your insurance needs is something not too many Americans relish doing, except when they want to make sure that they pay the lowest premium.
This is fine. The amount of insurance premium involved is a key consideration in the choice of an insurance company to take care of your needs. But it is certainly not just the only one.
Most Americans take their insurance needs for granted, oftentimes doing it simply to comply with a government law or a bank requirement. These are their compelling reasons to take out an insurance policy, not as a hedge against possible life and non-life losses.
When a real disaster or accident happens and insurance claims have to be made, only then do they realize the importance of having chosen a reliable insurance company to serve their needs. When that time comes, a good insurance company should be able to readily process your legitimate claim and pay you for your losses. After all, you buy insurance policies not only to comply with certain regulatory requirements, but to protect you financially and provide you with peace of mind.
There are a good number of insurance companies out there, so a good choice should be made according to the following considerations:
• Deal only with an insurance company that is licensed to operate in your state. If anything happens, you can count on your state insurance department to help settle certain dispute between you and your insurer.
• Get more than one quotation from different brokers and insurance companies. Insurance companies are known to offer similar products at different prices. Study each quote before you start your premium payment.
• Buy only from reputable insurance companies with a history of financial soundness over the years by using ratings from reliable rating firms, like Standard and Poor, Moody’s and A.M. Best. A rating of “A” is your best guarantee of a financially stable insurance company.
• An insurance company and its representative should handle claims fairly and quickly. Talk to other customers who have experienced dealing with a particularly insurance company or agent. You can likewise check internet forums and national claims database to check complaints against a particular insurance firm.
• You should feel at ease with your insurance purchase by making sure that the agent or company will be easy to reach in case you have a question or a need to file a claim.
If you’re like most people, chances are you’ve been using the same insurance company for years. It’s not even a surprise if your current auto and home insurance policies are from the same insurance firm that your parents had. Nothing wrong with that – except when something goes wrong. And when it comes to insurance, it can’t be any worse when something goes wrong at the time you file for an insurance claim.
So for your own peace of mind, it is a good idea to review your present insurance policy, or one being offered to you, using the above checklist. If it passes the test, which it should considering the length of time your insurance company has been in existence, then well and good. Otherwise, it may be time for you to consider another insurance provider.