Considering it puts you amongst the few responsible individuals out there. Whatever insurance you are buying, the single most important aspect to look for in an insurance company is if they pay claims.
There are different kinds of insurance policies. Depending on what insurance you are looking for, consider other factors other than those listed here. These are the basic fundamentals.
1. Duration of existence:
A company that has been in business for a long time has built capacity in the sector and has a good understanding of customer needs. They are better at managing assets and reducing risk. You are more likely to have a smooth relationship with them than with a new player.
2. The Size of the company
Large companies tend to have been in business for a long time and have a wider range of products. But, a smaller company may have more personalized customer service and specialization.
Generally, large companies with long histories will have streamlined processes and functions. They will be great at the industries they cover, meaning less stress for you.
The size of the company also infers on the financial ability of the company to pay claims. They have a larger business volume, better claim, and solvency ratios. Due to their size, they are not likely to bypass the regulators’ requirements.
3. The price tag
While one can not put a price on their life or business, it is important that the policy you choose is affordable and fits your budget. often price goes with coverage but this is not always the case. Shop around, decide what you need for coverage and then decide on the company to work with.
4. The claim paying process
If this is complicated it may be very frustrating when it is time to make claims and this is magnified by the situation at hand.
5. Location
Do they have a local office in your town and if they don’t is it easy to get someone to talk to? Sometimes after the initial sale and the first few payments no one to talks to you. Sometimes it may just be that an agent is not good or the company may be understaffed.
6. Service quality
This is as important as whether they pay claims. Remember, at your most vulnerable, you will be needing them. Frustrating customer service personnel are not people you will want to deal with when things are bad. People have gone into depression as a result of stress magnified by the process of claiming insurance settlements.
7. Specialty in the area of coverage
This is important for your high priority coverage items, especially for business. For example, many insurance companies do not cover agriculture. Yet there are boutique agricultural insurance firms that have packages for animals. Other insurance firms have packages for a specific gender. This means they value what is not appreciated by their competitors e.g. branded designer accessories.
8. Market reputation
Do not ignore the personal experiences on online reviews, of family, and friends. While others’ experiences may not be yours, a bad experience with different people can be the best indicator of what your experience will be.
9. Payment plans
Depending on the type of insurance, check what type of payment plans are available. it is wise to choose one that meets your personal and financial goals.
10. Rate increases
Some insurance companies increase their policy rates a little too often. This should be disclosed before you sign up especially with medical covers. If it is not, maybe this is not the best partner for you.
11. Bundles and addons
Though this may look attractive at the first instance it should only be considered if you can tick the other boxes. If not, it may be a gimmick to get you to sign up on a lousy deal. Sometimes it is a red flag on what to avoid.
Watch out for companies that put out flashy advertising but have no history to back up their claims.
12. Other expenses
For medical covers, look at the fine print and check for caps on payments. Also, check on co-pays and anything that would infer that you have to cover some costs.
13. Partnerships
This will be different depending on the type of insurance you are looking at. For a medical cover, it would be a network of hospitals. For car insurance, it may be garages or dealerships that can provide you with one when yours is not working. Doing your market research before you make a decision, helps you find out what is available in the market. Tu can then determine what you need and do not.
14. Legal Accreditation
This may be assumed but it is important to check, especially if you decide to go with a smaller firm. Cross-check that they are legally approved to sell the policy you are buying. An accredited company will stick to rules, regulations, policies, and guidelines better than one that is not.
