Choosing Your Insurance Provider
How to choose an insurance company? This question is common among people who want to stumble upon the amazing insurance providers, there are thousands available but not all can offer the kind of quality you’re hoping for. A lot of people make the mistake of solely trusting the word of insurance brokers. Don’t get us wrong, we’re not saying that it’s an entirely bad thing but be mindful that almost all insurance brokers prioritise commissions, so they likely recommend the insurance provider that offers the highest commission. Hence, almost all the effort, time and research into finding a great insurance company is up to you.
The Company’s Reputation
Don’t rush into the decision-making process, invest time in getting to know the company before signing anything. When it comes to the entire research process, the internet would be a great help. The internet is teeming with reviews from clients and there’s a high chance that the insurance company you’re eyeing has clients that have a thing or two to say about them.
It’s not your main goal to find a company with the perfect reviews, what you’re aiming to do is to look out for any negative reviews and find out the root of the problem stated by the irate clients and if it was resolved. Avoid the insurance provider if you see that the issue were due to non-compensation of the policy holder.
It’s incredibly crucial to choose insurance companies that are actually recognised and accredited by the government. Accredited companies typically follow a solid set of guidelines, rules, policies and regulations which can’t be said for unaccredited companies.
The Company’s Financial Stability
Financial stability is another important factor, keep in mind that there have been cases where insurance companies closed down and policy holders received nothing. It’s an ugly situation, so investigate on the financial stability of all the insurance companies in your shortlist before buying any insurance product that they’re offering. We highly recommend getting a copy of their latest financial statement, look for the company’s profitability and growth rate through the years. By doing simple online searches, you’d find numerous helpful sources and ratings that can offer insight into an insurance company’s financial strength.
Purchasing insurance online is not unheard of and it’s not an entirely bad thing and you have the convenience of time and location but be careful when purchasing insurance products on an online platform. If you have reservations in purchasing insurance online, then you can always go for insurance companies with physical branches or offices in the area; what great about companies with physical locations is that you can always head to them as soon as problems and issues arise. Also, it’s better to choose insurance providers that are actually licensed to sell insurance products in your area; it’s important in case of any relevant lawsuit.