Insurance Company

How do I select an Insurance Company?

Insurance Company selection is a process involving several factors. Each factor depends largely on you, the consumer, finding a comfort level with insurance company size, location, product offerings, customer service, and strength.

Listed below is a brief, to the point, summary of the above-mentioned buying considerations.

Insurance company size is important because events occur (hurricanes, terrorist attacks, recessions, etc) that test the ability of the insurance company to meet its obligations. The larger the insurance company, the greater likelihood it can withstand events that may be unpredictable.

Location is a factor because it relates to your ability to do business with the company. If you move, check to make sure your insurance company is licensed to do business there. Combined with strength and size, location matters if the company only does business in a state prone to natural disasters. An event, like this one, can wipe an insurance company out.

Product offerings are important to the extent you want an efficient insurance relationship. Having your auto, home, and umbrella policies with the same company can result in multiple line discounts. It also may mean only having to deal with one insurance company/agent. If you carry all of your insurance policies with one company, you are a greater value to that company. If an accident or a loss occurs, you are less likely to be cancelled by that carrier because of the strong relationship you created by carrying all of your coverage with that company.

Customer service is important. Period. There are two ways an insurance company gives great customer service. Before the sale, you get the quote in a timely fashion, underwriting assesses the risk quickly, and you get a policy issued close to the quote that was promised. After the sale, you get great customer service when you need to make changes and, most importantly, when you have a claim. Claims history is a very important issue. It's why you buy insurance. Have a local insurance agent you can speak to in person. It is critical to good customer service. Most state's offer a breakdown of the claim complaint rankings of each company. Check with your state insurance department to see how your insurance company stacks up.

Finally, insurance company strength is important because independent third party rating agencies like Standard and Poor's, and A.M. Best give unbiased reviews about insurance companies. As you go through the insurance buying process, be sure to check the financial strength ratings offered by these 3^rd party rating agencies.

Insurance4usa.com works with over 1,500 insurance agents and 400 insurance companies dedicated to giving great customer service (As of April, 2004).

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