Choosing a better insurance plan requires that you use a more strategic approach to your insurance search. Many homeowners, car owners and life-insurance owners want to maintain a good insurance to ensure they are always covered, no matter the incident. If you have begun the search for a new insurance plan or you have no decided to finally get an insurance plan, there are some helpful tips that can assist with choosing the best insurance company for you. While these tips are not the only ones, they are here to be strategic moves to help ensure you are insured properly.
1. Do Your Homework Ahead of Time
It is important that every person looking for an insurance policy that fits there needs does all of their homework ahead of time. By “homework”, we mean that you need to do adequate research into every company you have as a prospect.
While it is a known fact that each insurance company is required, by federal law, to upkeep a certain amount of money within their reserve to cover all their clientele and meet all financial obligations, it is not always solid. Companies tend to have “shady” markers to them and clauses that prevent people from cashing in on their insurance policies when they need it.
Researching can be done through an easy Google search or other search engine. Look for review sites where real insurance policy owners rate and review their current or past insurance companies. Reading these and taking notes is advisable.
2. Analyze and Record An Insurance Company’s Rating
Every company is rated through the BBB, “Better Business Bureau”, as well as through private companies and analysts. Check for the companies rating and record it for your records. The higher the rating a company has, the better they are as an insurance company.
However, learning the rating system ahead of time will be advisable. Certain companies use a “AAA” system, where that is their highest rating. Other companies use the grading system of “A++”, which is the highest rating within those companies. Varying on the company you use, you can determine the rating system through their online navigation. Place a star next to the highest rating insurance companies.
In addition, it is important that you ensure you are using multiple agencies to look for ratings. One company may differ from another. Using three or four, you can determine the overall score of the insurance company and place the “official” results you received with all four next to the company.
The higher-rated the company, the better!
3. Size Doesn’t Always Matter
As you research each home insurance, car insurance and life insurance policies (as well as other insurance-types), you may think that the size of the company and the amount of clients they have determines if you should go with them or not.
This is untrue.
Size does not matter as much as longevity matters. While several large companies may have been in business for well over a century, this does not hold true for all. In addition, many small and medium sized companies are equally as successful and may have been in business just as long as larger companies.
The longevity proves that the company has an understanding of the intricacy of the insurance industry, making them more reliable.