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Eight tips for choosing the right insurance company

Definitions, conditions, coverages, exclusions, and endorsements can confuse and possibly give you a headache. And purchasing insurance isn’t exactly exciting or fun. But imagine your life without it. Imagine losing everything you own to a fire and not having insurance to help get your life back on track.
When Measure Consult consultants ask people who their insurance company is, they usually answer, “I don’t know,” or they give them their local agent’s name. If there’s a loss to your home, auto, or business, the last thing you want to do is figure out who your insurance company and agent is and how they help when your life’s been turned upside down.
The purpose of this article is to share different things to consider when deciding where to place your insurance business.
1. Independent agent vs insurance company
People aren’t always sure who their insurance company and agent are. The independent agent’s job is to find an insurance company that best fits your insurance needs. This isn’t as easy as it sounds.
The insurance company works with an independent agent before and after the policy is sold. The insurance company:
  • Determines premium by reviewing suggested coverages identified by your independent agent.
  • Mails you a copy of your insurance policy.
  • Handles your insurance payments.
  • Make changes to your policy as your agent recommends or because of a lifestyle change (i.e., new teen driver).
  • Provides businesses with loss prevention strategies.
  • Pays claims should a loss occur.
Please note that an insurance policy is a contract. What’s covered and not covered is specified in your policy. Please read your policy and talk to your independent agent so you know how a future loss may be covered.
2. Company history/reputation

Research the insurance companies you’re interested in. By visiting their websites, you may learn:

  • How long they’ve been in business.
  • Their mission, vision, and values.
  • Company leadership.
  • Community involvement.
  • Types of products they sell. 
  • Financial strength.
It’s unlikely you’ll find a company with only positive reviews. If the information doesn’t answer all your questions or leaves, you feeling not quite right about them, research another company. As with other purchasing decisions, you should be comfortable with your decision.
3. Understand the insurance company’s financial strength
If there’s a problematic claim situation, you don’t want to hear that your insurance company can’t pay your claim because of its poor financial results. Many insurance companies work with independent rating agencies that review many factors and the economic consequences to assign a letter grade or score.
4. Coverage
Select an insurance company that provides appropriate coverage for your personal or business needs.
5. Price
While price should be a consideration when purchasing insurance, it shouldn’t be the only one. Remember the old saying, “You get what you pay for.” There are many reasons why pricing differs between insurance carriers. A lower price may mean you have less coverage.
Less coverage means more money out of your pocket when a loss occurs. A lower price may also mean that the insurance carrier has entered a new market, so it may not have the experience another insurer would. Please talk to your agent about the differences.
6. Ease of doing business

Understand how you can interact with an insurance company. Interactions may include:

  • Online bill pay.
  • Online claim reporting.
  • 24/7 customer service.
  • Social media platforms.
  • Policy changes.
  • Billing questions.
7. Available discounts

Many insurance companies offer discounts. Find out what discounts apply to your situation:

  • Protective devices.
  • Newer and updated homes.
  • Specialised construction materials or methods.
  • Financial stability.
  • Multi-car families.
  • Good students. 
  • Anti-lock brakes.
8. The power of referrals
Each day we’re inundated with marketing and advertising messages that can be overwhelming. Talk to family, friends, and co-workers to learn about their experiences with an insurance company.