Time To Talk Insurance
This Months Topic: Finding the Best Insurance Company
The Truth
Any drivers, homeowners, or business owners who are looking for a new insurance company or a better price on their current policy should hopefully already know they have many choices to choose from. Today, there are many insurance companies in the marketplace, but not all insurance companies are alike. When deciding which insurance company will provide the best service if you have a claim take a look at the online rating resources available on the internet. The insurance companies that spend millions of dollars advertising are not usually the insurance companies rated the highest by the consumer rating authorities. In fact, from my many years and experiences in the insurance business some of the larger more publicized insurance carriers are very unfair when it comes to paying claims and providing even the basic insurance coverage’s.
Often, the consumer may wonder what other types of things they can compare besides the price that is being offered. We will go over some other factors about insurance companies that can be looked at and compared to ensure the future policyholder will be satisfied with not only the price they are paying, but also with the insurer as a whole.
Customer Service
The first aspect of insurance companies we will discuss is their ability to provide excellent customer and claims service. Customer service doesn’t just include polite manners used over the phone, but it involves more than that. Any time a policyholder needs to deal with their insurer or agent, whether it is to ask a question, file a claim, or pay a bill, their experience interacting with a representative of the insurance company needs to be a positive and informative.
One way to evaluate an insurer’s or agents customer service abilities is by asking trusted family and friends about who they have used in the past and who they are currently using. Find out about their experiences, both positive and negative. Another way is to gather this type of information is by turning to a third party company that evaluates insurer’s customer claims service abilities. One such company that does an excellent job is JD Power and their findings can be found at Jdpower.com. They evaluate many aspects from claim service options to overall customer service. They give star ratings to each company and annually they determine which company provides the best customer service. It’s a great way to compare insurers using an unbiased reference.
Financial Strength
The next aspect to consider when comparing insurance providers is checking into their financial strength. Wouldn’t it be terrible if you went to file a claim, only to find the insurer doesn’t have any money to pay for the damages that were supposed to be covered according to your policy? You would be left paying for those repairs out of pocket even though you had every right to hand the costs over to your insurer. Knowing the financial strength of an insurer can help consumers to choose the best insurer for them according to the insurer’s ability to pay for what they’ve claimed they will pay.
Much like the customer service review, there are other companies who review the financial status of insurance companies. It would be very time consuming if consumers spent their time watching the quarterly earnings of each insurer they are considering, evaluating how much free cash flow and debt each insurer has accrued. Instead, consumers can turn to companies like AM Best to find these professional ratings and opinions. They are willing to share their findings to the public for free, so every consumer should take advantage while searching for their optimal insurance provider.
AM Best (ambest.com) gives their ratings in the form of letter grades, with pluses and minuses for added levels. They recommend a company who has earned a grade of a B+ or better. AM Best feels these insurance companies are financially secure, while those who receive lower grades are vulnerable to financial mishaps. After all, no one wants to be placed in the negative situation mentioned above when an insurer can’t provide their coverage.
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