There is a wide range of insurance companies from industry giants that sell millions of policies to small insurance companies that sell a few hundreds of policies a year. There are a number of factors to consider when selecting a good insurance company. Conducting due diligence to discern a company’s financial health is always a good idea. Below are a few tips to consider:
It is easy to access the ratings of an insurance company online. Several third party companies conduct financial analyses of insurance businesses and post their reports online. These agencies may offer the reports for free or may charge a small fee. The rating system may not be the same on different sites. While AAA is the highest rating at Moody’s, A+++ is the highest at A.M. It is not advisable to select an insurance company automatically based on their high rating as they may lack features that you are looking for.
There are times that size matter and others when it does not. Large insurance companies have been in operation for decades, and they have the necessary experience to handle clients. This notwithstanding, there are small to medium insurance companies that have been in operation for that long and offer awesome insurance policies and features. To this end, size may not be a primary factor when selecting the right insurance company.
Consumers will always air it when they do not get the services they bargained for. Check for complaints from state departments of insurance or third party companies like BBB. Though the quality of complaints may vary from state to state and from a private company to the other, it is always key to analyse negative feedback against positive feedback.
Need for a broker
The beauty of having a broker or an agent is that he/she will professionally guide you into choosing the right insurance company. They will professionally conduct an insurance needs analysis and come up with policy recommendations as well as recommending the best company based on ratings. Most agents have dealt with these insurance companies on a personal basis, and when they help you choose one, they really know it.
To fasten off, consider the right insurance company as the one that provides you the right recommendations, has a variety of products and their prices are competitive. When selecting a good insurance company, ensure the company has an exemplary customer service record and their financial ability must meet their financial requirements.