Choosing Your Insurance Provider
With the sheer number of available insurance companies, how can we choose? The most common question among people out in search for insurance products among hundreds and thousands of insurance providers and insurance packages; companies range from big international companies to small and basic ones. Avoid making the common mistake of only considering the word of insurance brokers, regardless of which insurance company they’re affiliated with. Don’t get us wrong, we’re not saying that it’s an entirely bad thing but be mindful that almost all insurance brokers prioritise commissions, so they likely recommend the insurance provider that offers the highest commission. Bottom line, the research and effort into finding an the best insurance company fall on your shoulders.
The Company’s Reputation
Take time in investigating the insurance company before finally committing to them. The internet will be your number one tool in your little investigation. The internet is teeming with reviews from clients and there’s a high chance that the insurance company you’re eyeing has clients that have a thing or two to say about them.
It’s not your main goal to find a company with the perfect reviews, what you’re aiming to do is to look out for any negative reviews and find out the root of the problem stated by the irate clients and if it was resolved. Avoid the insurance provider if you see that the issue were due to non-compensation of the policy holder.
The insurance company has to be officially recognised and credited by the government for your own safety, this is investment and protection after all. Companies will legal accreditation will definitely stick to polices, rules, regulations and guidelines but we can’t say the same for companies that aren’t.
The Company’s Financial Stability
Financial stability is another important factor, keep in mind that there have been cases where insurance companies closed down and policy holders received nothing. Circumstances like these result to ugly situations, so before purchase an insurance product form any insurance company do a small investigation involving the financial stability. We highly recommend getting a copy of their latest financial statements, focus on the profitability as well as their growth rate. A lot of online rating services and resources are available online for anyone to see, they will be able to offer a clear idea into the company’s financial statement.
The Company’s Location
More and more people buy insurance products online now than ever before and it’s not a bad thing, take note that even if it’s all that convenient you still have to be careful of purchasing insurance products online. A better choice would still be insurance companies that have physical offices or branches in your area; in case you have issues or inquiries then you know where to go. On an additional note, opt for insurance companies that are official licensed to sell products in your state, this is important in case of lawsuits.