Let's face it: insurance has a bad reputation. Research has shown that people view it as a necessary evil.
This false perception might cause you to rush through the process and select the cheapest policy, figuring that they're all pretty much the same.
But what happens if you get into a car accident? Or your home is damaged in a severe storm? You're going to regret that hasty decision to give your business to the lowest bidder.
Read on to find better reasons to choose an insurance company than just price alone.
1. Reviews and Referrals
A good place to start is with an online search. While you should always take online reviews with a grain of salt, if you see consistent complaints about the quality of service or claims handling, these are red flags. It's also a smart idea to ask your friends and neighbors which insurers they trust.
2. Industry Rankings
You can do more online digging via sites like J.D. Power for insurance company ratings. For example, they ranked home insurance companies last year. These organizations offer a bias-free, objective way to compare insurers, whether you're looking for the best health insurance company or another form of insurance.
3. Financial Stability
No matter what kind of insurance you have—whether it's home, life, rental, or auto—what makes a good insurance company is the ability to pay for a claim. AM Best is considered a leader in providing financial stability grades for insurance companies.
You may want the ability to change your policy depending on your circumstances. For example, a life insurance policy rider allows you to add benefits not included in your original policy. Paradigm Life riders help you tailor coverage to your exact needs.
5. Online Options
There's a wide range of tech-savviness among insurance companies. Find out if your insurer offers digital options such as online auto bill pay and online claim reporting. These services can make managing your policy far easier.
You'll also want to look into how reliable the company's technological products are. If the insurer's app is constantly crashing, it doesn't matter how many features it has.
6. Customer Service
Is there anyone who likes waiting on hold? As you're investigating insurers, test out how accessible and professional their customer service system is. Talk to a customer service agent and see what the experience is like.
Insurance companies seek ways to attract new customers such as offering deals and discounts. You might get a few bucks off your auto insurance premium for good driving habits. This could be a way to hit that balance of reasonable cost but high-quality coverage.
8. Price: One of the Reasons to Choose an Insurance Company
While it shouldn't be the only factor in which insurer you use, price is still an important consideration. While you're shopping around, keep in mind that additional coverage will always come at a cost. This cost may very well be worth it if disaster strikes.
Finding the Right Policy for Your Needs
Having a strong insurance policy means you get peace of mind. Do your homework, consider how sound your reasons to choose an insurance company are, and go forth confidently.
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