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How To Choose An Insurance Company

Choosing an insurance company – responsible decision, the adoption of which requires certain skills and knowledge. Do you crashed the car, lost their property, were taken to hospital in an exotic country – to help solve all these problems can be an insurance company. How to choose a firm that in difficult circumstances will be able to support you, we will explain in this article.

How To Choose An Insurance Company

The main criterion when choosing an insurance company – is its reliability. However, focuses not only on customer reviews (they, unfortunately, are not always objective) or brand recognition, but also on the very specific characteristics: reliability ratings, financial stability and tariffs.

It is important to know!

  • If the company is small and not very well known, make sure to start with, if she has a license to conduct insurance activities. With the registry of insurers can be found on the website.

  • Note, where the company is registered. Do not trust the insurers, who are registered in the territory of another country.

  • Greater trustworthy companies operating in the market for more than 10 years.

Evaluation Of Reliability Of The Insurance Company & Guarantee Payments

Reliability ratings, may not give a complete picture of the stability of the insurance companies, but to them it is worth to navigate. All companies in the ranking could fall into one of five categories: Class A (high reliability), Class B (acceptable or satisfactory level), Class C (low level), the D class (bankruptcy) and class E (withdrawal of the license). Of course, the better to focus on the companies that belong to the class A. By the way, there is still a division into three groups: “high reliability”, “very high” and “very high”.

The reliability of the ratings you can also get acquainted with the forecast: whether the company will continue to hold its position or its rating will increase / decrease.

It is important to know!

  • Evaluation of reliability of the insurance company – usually paid procedure, so not all companies fall into the rating. The lack of company on the list does not mean that it should not be trusted.

  • To obtain a more complete picture can be viewed as a “people’s” reliability ratings, read reviews and consumer opinions.

  • More credible ratings that assess not only quantitative, but also qualitative performance indicators.

  • Analyze than one rating, and several – and for a long period. This will help you gain a more complete and adequate opinion.

Financial Stability

Take the time to assess the financial stability of the company. This is done, in fact, it is easier than it might seem at first glance – even if you do not have economic education.

The financial stability of the insurer – is its ability to perform its obligations, regardless of changes in the economic situation. And, if you are going to enter into a contract with the company for the long term (for example, in the case of life insurance), it is important to analyze and predict the most probable development of the company during the time of the contract.

So, what to look out for:

  • Authorized capital. It must exceed the minimum established by law (at least 240 million rubles for life insurance and no less than 120 million for general insurance insurers).
  • Assets. This means the company, which may include: financial investments, property, wealth, etc. The growth of assets can positively characterize the activity of the company, especially if it is due to the premium collected. It should also be understood that the larger the company free assets, the more it is solvency and financial stability.
  • The insurance portfolio of the organization. This is the total number of contracts, that is, the assumed financial obligations. It should be adequate financial capabilities of the company.
  • Insurance reserves. Usually they do not exceed inflation. Reduced insurance reserves – a poor indicator, since these funds are spent on insurance premiums.
  • Fees and payments. Some companies are trying to find a way not to pay money to customers, so it is worth pre-acquainted with the payout level. However, if it is too high, then it also should be alerted.
  • Reinsurance protection. It is necessary to find out to whom, and to what extent the company sends large risks. The best option – to trust such risks major Western companies in the amount of 5-50% of gross index insurance payments.

Most of the data is in the public domain (eg, on the official website of the insurer). For information on charges and fees can be found on the website of the Bank Service of Russia on Financial Markets and the ratings of insurance companies.

Customer Reviews

Customer Reviews – quite a controversial figure reliability of the company, but still worth to read to them. Please note that each insurance case is different, and often of the negative reviews is a lack of awareness of the client’s payment conditions, and for the positive – hidden advertising.

It is important to know!

  • It is better to trust the real people – acquaintances, friends, relatives, who had to use the services of an insurance company and claim payments.

  • If possible, contact the party online forum reviewed (especially if the review contains the actual information, not just the emotions), find out the details of the situation.

  • Wary if the web is too many negative reviews regarding it problems with payments (under-payment and delays in). Try to objectively evaluate such opinions, because you do not know, an agreement was concluded under which conditions. However, if the client at the time of signing the contract did not explain all the details and features of the payments withheld some important details, it also does not speak in favor of the insurance company.

Tariffs, Bonuses & Loyalty Programs

Tariffs – another important point, which is worth paying attention to when choosing an insurance company. Too low prices should guard: usually the dumping engaged in new or small companies are trying to attract more customers. At the initial stage, this strategy can justify itself, but in the long term the company is likely to face bankruptcy.

So here in the first place is the rule: do not try to buy the cheap!

But, of course, a positive criterion is the presence of various bonuses and loyalty programs. Find out if the regular customers discounts or bonuses granted on the acquisition of additional services. Large and reliable company can afford to lower prices for loyal customers: the company is – an additional customer care and creating a positive image for you – you can save.

Compare Insurance Companies

Even before you take a final decision, visit the offices of several selected companies. Pay attention to the level of service, the desire of experts detailed to answer your questions, even on the office itself and the atmosphere in it.

What else needs to be done before a final decision:

  • Ask for estimates in different companies, compare them;

  • Carefully examine the terms of the contract and explain to all weird or controversial points.

Appreciate those companies where good service, where specialists are polite, you are ready to go forward and advance warning about the conditions of payment, try to pick up an individual rate that meets your needs, it is literally “chewed” all the nuances. This increases the likelihood that a greater attention to the customer and will be in the event of an insured event.

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