01 August 2017

4 Must-Do's When Choosing an Insurance Agency

Sometimes, it seems like  you need insurance of every kind. To get that insurance, you need to find an insurance agency to show you what you need (and what you don't). However, every insurance agency claims to be the best and offer you the lowest rates, so how do you really know who will give you the best service and products? The key is doing your own research into each option. You should never just 'take the word' of the company's marketing.

There are four specific things you should do to get a better idea about a company. Doing these four things should give you all the information you need to make a good decision and choose the company that will offer you the best service.

#1 - Check the Company's Financial Health

Insurance companies are in the business of money. Everything they do revolves around money. In order for a company to offer you proper coverage and security, they need to be in good financial shape. Imagine submitting a claim and it getting denied because the company can't afford to pay it. That is why you must look at the financial stability of the company.
You can do this through looking at its rating. There are private companies that compile and create these ratings. The top rating may vary from company to company, but generally, it follows the school method of grading with an 'A' being the best grade.

#2 - Look at the Better Business Bureau

You want to look at the company's Better Business Bureau record. It should have a fairly decent record of resolving complaints quickly and managing its standing with the BBB. Do realize that just because a company has complaints, you shouldn't write it off. No company is perfect. Issues occur, but it is how the company handles those issues that really matter.
If the company is quick to solve issues and the person complaining indicates he or she was satisfied with the resolution, then it indicates a good company worth considering. On the other hand, a company with a lot of complaints left unresolved is a red flag.

#3 - Study What It Offers

After you have checked the background of the company, you need to do some detailed investigation into what the company offers. Obviously, the insurance agency you choose should offer the products you need. For example, if you need auto insurance and renter's insurance, then the company should offer both.
Look into how they figure rates, too. You may not be able to get detailed information, but through asking questions, you should be able to get an idea of what criteria is used. This is helpful because companies can offer you different rates based on the criteria they use. For example, if company A weighs heavily on your credit score but company B relies more on your driving record, you would be better off with company B if you have a low credit score but perfect driving record.

#4 - Meet an Agent

You should never make a decision without talking with an agent first. You want to get a feel for how they deal with customers. Your gut feeling about a company is almost always right. If you feel something is off or just don't feel comfortable with how you are being treated, then it is a smart idea to go with another company.

Doing these four things before you choose an insurance company can help you get the best value for your money. Choosing a company you trust and believe in is important when it comes to insurance because it is all about trust. You are paying them money out of trust they will pay up when the time comes. If you cannot develop that trust, then the relationship is doomed. Not to mention, you simply do not want to waste your money on a company that won't offer you a valuable service.

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