Purchasing insurance can be a daunting task. Definitions, conditions, coverages, exclusions, and endorsements can all be perplexing and give you a headache. Buying insurance isn’t exactly exciting or enjoyable. But consider what your life would be like if you didn’t have it. Imagine losing everything you possess in a fire and not being able to get your life back on track because you didn’t have insurance.
You’ve probably heard me describe myself as an insurance nerd. When I ask them who their insurance company is, they either say “I don’t know” or tell me the name of their local agent. When your home, car, or business is damaged, the last thing you want to worry about is figuring out who your insurance company is, who your agent is, and how they can help you when your life has been turned upside down.
The goal of this blog is to discuss several factors to consider when determining where to locate your insurance company.
- The history and reputation of the company. Investigate the insurance companies you’re considering. You can learn the following things by visiting their websites:
- How long they’ve been in business.
- where they sell their products.
- their purpose, vision, and values.
- company leadership.
- community participation.
- product types sold, and financial strength.
It’s doubtful that you’ll come upon a company with entirely favorable feedback. If the information doesn’t address all your queries or makes you uncomfortable, investigate another company. You should feel confident in your decision, just as you do with any other purchase.
- Recognize the financial stability of the insurance provider.
If you’re dealing with a challenging claim, you don’t want to hear that your insurance company is unable to pay your claim due to bad financial results. Many insurance companies collaborate with third-party rating agencies, which assess a variety of characteristics as well as financial results before assigning a letter grade or score.
- Coverage.
Choose an insurance company that offers adequate coverage for your personal or corporate requirements.
- Price
While price is an important factor to consider when buying insurance, it should not be the only one. “You get what you pay for,” as the adage goes. There are a variety of reasons why insurance companies charge differently. You may get less coverage if you pay a cheaper fee. When you have less coverage, you will have to pay more money out of your own pocket in the event of a loss. A cheaper pricing could also indicate that the insurance carrier has entered a new market and hence lacks the experience that another insurer would have. Please discuss the differences with your agent.
- The ease with which one can conduct business.
Learn how to communicate with an insurance company. The following are examples of interactions:
- Online bill pays
- online claim reporting
- 24/7 customer service
- social media platforms
- policy updates and billing questions are just a few of the services available.
