When selecting an insurance company, you’re trusting an insurer with your hard-earned cash. Given that most companies offer the same product, it doesn’t mean that they’re equal. That’s why it can sometimes prove challenging to select a company to trust with the things that you hold dear.
Advertisements and commercials will only tell you what you want to hear, but on paper, there is a lot that isn’t taken into account. Everyone needs a company that is reputable, honest, and can cover claims quickly. But how do you go about finding the right insurance company?
Here are the topmost six things to consider when selecting an insurance company.
A Company’s Reputation
Before you commit to any of the insurance company, you should take time to investigate all aspects of their operations. There is a lot of information you can get about a company by reading reviews of the company on the internet. The aim here is not to find a company with 100% positive reviews at all cost.
It’s about analyzing the negative reviews and finding out what problems the clients had with the insurance company. For instance, if the company has issues like non-compensation of its policyholders, then they’re not the right people to work with.
The History of a Company
Many insurance companies put out flashy advertisements to sell their brand, but it’s always wise to check how long the company has been in business. An established track record tells you that the company is worth a shot. Go through their website and look at things like the claim settlement ratio.
This will shed more light on their performance, which is what anyone hunting for an insurance company is looking for.
Financial Stability
Any insurance company you choose has to be financially stable. There are many cases where insurance companies collapse, and people lose their policy. That’s why you should investigate a company’s financial stability before you commit to the products they offer. The best way to do this is by getting a copy of their current financial statement then check on their growth rate and profitability over the years.
There are also different resources online that can give you insights on the financial strengths of an insurance company.
Always Ask For Full Disclosure
Never condone hanky-panky games! Stick with insurance companies with full disclosure policy. Make sure that you’re conversant with the dos and don’ts as well as the terms and conditions. A reputable insurance company will be open and honest about its requirements and clauses. Some companies may not be transparent with their condition. When you file a claim, they’ll come up with reasons why they cannot pay. At times policyholders are at fault for not reading and fully understanding the terms of the contract before any signing.
As you read and understand the terms, clauses, and conditions of the contract, you should also let your lawyer have a second pair of eyes before appending any signature.
Suitability of Products Offered
The type of product offered by an insurance company is worth investigating. Many companies offer general insurance like general liability, health, auto, and property. You may be searching for a different insurance policy for your business or company needs, which isn’t offered in selected insurance companies.
A good insurance company will offer you different policies under one roof instead of having different insurance companies for different products. This way, you end up reducing your monthly premium significantly.
Service Quality
When choosing an insurance company, try to gauge their quality of service. What is the attitude of the customer service agent you’re speaking to? Are they always available to answer the phone when you need help? Do they respond fast to emails?
Are they patient when approaching clients or do they seem busy and end up making a sales pitch without grasping your financial needs? These are questions that you cannot overlook before making your final choice.
Final Thoughts
Buying insurance is not an easy task. Depending on the type of coverage, it can last years or even a lifetime. The only time you are rest assured of having fewer difficulties with your policies is if you settle on the right insurance company. So, take your time and do a little research and you won’t regret it at all.
