Purchasing insurance can be overwhelming. Definitions, conditions, coverages, exclusions, and endorsements can definitely cause confusion 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.
You’ve probably heard me say that I’m an insurance geek. When I ask people who their insurance company is, they usually answer, “I don’t know,” or they give me their local agent’s name. If there’s a loss to your home, auto, or business, the last thing you want to have to do is figure out who’s your insurance company and who’s your agent and how they help when your life’s been turned upside down.
The purpose of this blog is to share different things to consider when deciding where to place your insurance business.
1. Independent agent vs. insurance company. As I mentioned, people aren’t always sure who their insurance company is and who their agent is. West Bend’s products are sold by independent insurance agents throughout the Midwest. Not only do they sell our products, they also sell other companies’ products, too, including West Bend’s competitors. The job of the independent agent is to find an insurance company that best fits your insurance needs. This isn’t as easy as it sounds.
To learn more about the benefits of working with an independent insurance agent, check out my blog,“Benefits of an independent insurance agent.”
The insurance company (West Bend) works in partnership with 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;
- Makes changes to your policy as recommended by your agent or because of a life style change (i.e. new teen driver);
- Provides businesses with loss prevention strategies; and lastly
- 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 be sure to 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;
- In which states they sell their products;
- Their mission, vision, and values;
- Company leadership;
- Community involvement;
- Types of products they sell; and
- 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 difficult claim situation, you don’t want to hear 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 financial results in order to assign a letter grade or score. Since 1971, West Bend has been rated A (Excellent) or better by A.M. Best Company which is recognized worldwide as the benchmark for assessing insurers’ financial strength.
To learn more about the independent rating agencies, check out “How to Assess the Financial Strength of an Insurance Company.”
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 insurance carrier has entered a new market for them 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; and
- Billing questions.
7. Available discounts. Many insurance companies offer discounts. Find out what discounts apply to your situation. For example, West Bend offers discounts for:
- Protective devices;
- Newer and updated homes;
- Specialized construction materials or methods;
- Financial stability;
- Multi-car families;
- Good students; and
- Anti-lock brakes.
West Bend also offers discounts for associations, groups, or corporations participating in our innovative Association Plus® program.
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.
Source
http://www.iii.org/article/choosing-an-insurance-company
WEST BEND, Scott Stueber on Sep 13, 2016 9:30:05 AM
My husband and I just moved into a whole new city, and that means that we now need to search for some new insurance. I’m hoping that I can find the best affordable insurance for my husband and I. I just need to schedule an appointment to have a consult with a few of these employees, that way we can figure out our insurance issues.
I agree with you in that it is aways a good idea to read reviews when looking for the best insurance company. It makes sense that doing this can help you know what previous clients have to say about the company and the decide if they are the right ones for you. personally, I would want to make sure I assess my situation and make a list of thing I want to have coverage for and choose a company that offers the best deals on them.
I agree that you need to find out how you can pay your bill when you choose an auto insurance plan. It would make sense to find a plan that allows you to pay online that is easier. My husband and I are looking for insurance on a second car, so we’ll have to see how we can pay our bills.
Thanks for mentioning that an insurance policy is, at its most basic, a contract between you and them. It’s good to remember that it will say exactly what is covered and what isn’t in something like that. It would probably be good for anyone whether they are a business or just a stay-at-home mom to be sure to look over that when getting insurance. I’ll have to find a good place to get insurance from.
Thank you for all this great information about choosing a business insurance company. One thing that really stood out to me is that you say to find out their community involvement. It would be nice to know that they are helpful in everything they do.
I like what you say about looking online at their reputation. Knowing others have had a good experience with the insurance agent you’re looking to hire is so important. We’re looking for a new auto insurance provider so I’ll make sure to jump online and see what I can find.
I had no idea that multi-car families could possibly be able to get discounts with insurance companies. We have three cars in my family, and so I’ll definitely have to ask my agency if they offer such a discount. Yet, why do multi-car families get discounts?
I like how you detailed out the specific actions the company takes at the initial stages of getting the policy. I just got of my parent’s insurance plan and now have to go get my own. Thank you for teaching me a little bit more about how insurance works and how to get it for myself.
The best part of your article for me is when you talked about the importance of paying attention to how you can interact with the insurance company which includes online bill pay and 24/7 customer service. My husband bought me a new car, and I’m looking to purchase an insurance for it for protection. For me, a 24/7 service and online payment will allow a convenient way of paying my insurance premium monthly. I’m mostly at work, and I don’t think that I can have a free time to visit a company just to pay my insurance. The convenience of online payment is really a big factor for me along with the 24/7 support. I will make sure to remember all your tips on choosing an auto insurance company.
I love that you talked about it’s unlikely you’ll find a company with only positive reviews so it’s important to just feel comfortable with your decision. My older brother wants to hire an auto insurance broker but is looking for tips on finding the best one for him. I’ll be sure to talk to him about just doing the research and then hire the one you feel comfortable about.
The best part of your article for me is when you talked about how you can consider researching the insurance companies that you’re considering to learn about how long they’ve been in business. My husband bought a new car, and he’s looking to purchase an insurance policy for it. It’s important for him to only deal with an established insurance company in order to get the guarantee of best services. I will make sure to share your blog with my husband so he can get some tips.
I like that you talked about how you must consider researching how long the insurance company that you’re interested in has been in the business. My husband bought me a new car, so I’m looking to buy an auto insurance policy for it. It’s important for me to only deal with an insurance company that has been serving the community for a few years now to give me the confidence that I will get the best services, most especially when filing insurance claims. I will make sure to consider all your tips for choosing an insurance company.
The best part of your article for me is when you talked about how you must consider understanding how you can interact with the insurance company that you’re interested in. My husband is looking to buy an insurance policy for his car. We’re both busy at work, and it’s important for him to ensure that the insurance company that he will choose offers the most convenient way to contact them no matter what time of the day or night it is. It will also be great if it will allow him to make payments online. I will make sure to share your blog with my husband.
It was really nice how you mentioned making sure to select an insurance company that has the means to provide the insurance policy coverage that’s appropriate for your business needs. Depending on your business, it may have the need for an insurance policy that will help to give your business the protection it needs. It will make sense to only deal with an insurance company that can provide your insurance needs. If I were to own a business, I’d make sure to purchase insurance policy based on your tips.
What I really liked was how you talked about how you can research the insurance company that you’re interested in and get information about the longevity of their business in the industry. My son is looking to buy insurance policies for our cars. At the moment, he’s interested to find an insurance company that we can trust and rely on for providing us the best services. We believe that it will be possible for us to get what we want by finding an insurance company that’s been in the business for a good amount of time. Thanks for the tips!
I totally agree that it’s important to choose an insurance company that will ensure you that paying your claims in the future is not going to be an issue, so it will make sense to consider the financial strength of the insurance company that you will consider. A close friend of mine is looking to purchase a car insurance. It’s important for him to only deal with an insurance company that has a clean record when it comes to dealing with their clients’ claims. This is to make sure that he won’t have to worry should something goes wrong with his car. Thanks for sharing this.
My son is looking to purchase an auto insurance policy for his new car. He’s interested to find an auto insurance company that will help him to determine the best type of insurance coverage for the insurance that he will purchase base on his needs. This is why I totally agree with what you said about the importance of making sure that the insurance company that you will choose is able to provide the appropriate coverage for your needs. Thanks for sharing this.
It was great that you pointed out that when it comes to finding a good insurance company, it’s best to find one that accurately covers our personal and business needs. I will be sure to mention that to my brother when I meet him next week. I heard that he plans on starting his own business, and he wants to have it insured first. Considering that I do not know what his needs are, he’s the one who should decide on this. Thank you for sharing.
It sure was a good advice when you said that in looking for an insurance company, what a person should do is shop around and settle for the one that accurately covers the needs of their business. I will be sure to do that because, as a matter of fact, we do need to get a commercial property insured before we start operating it next season. It wouldn’t be nice if we’re going to choose a home insurance provider for a commercial property right? Thank you for sharing the details!
It’s nice that you mentioned that a good auto insurance agent should be able to help you help you deal with all of your payments. I also like how you said that they should go over all that will be covered by their policy. My husband and I are looking for an insurance agent to handle everything with our cars.