Choosing an insurance company is not like picking a topping for your pizza. You have a multitude of options, and many opportunities to be ripped off or denied the peace of mind you are seeking. These points are provided by the Insurance Information Institute (www.iii.org), a great organization that exists for only one purpose: to increase public knowledge of insurance.
• Licensing
Just because an insurance company sells policies in your state doesn't mean they are licensed in your state. Let me say that again. It's perfectly legal to sell insurance in a state, even if you are licensed in that state. If you happen to buy a policy that ISN'T licensed in your state, your own state's insurance department won't be able to help you. So contact your state's insurance department and find out who offers policies that are licensed in your state.
• Financial Solidity
Look at the ratings that are published by independent rating agencies.These guys will tell you how financially solvent the company is. Insurance is supposed to protect your finances and give you peace of mind. A company that struggles to stay in the black may offer great rates but may not be around when you need them!
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• Price
This one is a no-brainer. Shop around, my friends. I don't know how they do this, but some charge as much as three times what another one does. Los Angeles drivers are hip to this when it comes to auto insurance -- you have to really dig to avoid getting taken to the cleaners. Today, in our enlightened, modern times, you can get quotes from big companies, agents and from the Internet. Get at least three quotes from each source, and look out for odd discounts and penalties that each policy may offer.
• Service
Do you have a favorite restaurant, bar, or coffee shop? Chances are, you are loyal to the place because of the way you are treated. It's more than just a sentimental notion; no one should tolerate less than satisfactory service. Insurance company reps should treat you like a person, not a number. They also should talk at you as if they are robots eager to make a sell. These same kinds of guys aren't going to help you fight to make things right when you need them (and that's their job).
Now, you can always talk to friends or family that are existing customers of a company, but I think you shouldn't trust anecdotal evidence. What's right for one man might be toxic for another. There are two good resources to help you objectively gauge the quality of service of an insurance company. The first is a national claims database which a registry of complaints. They exist for every kind of insurance imaginable so you may have to dig down in Google to find the one you need. Another great resource, again, is your state insurance department. They can tell you what might be the most useful metric of all: the ratio of complaints to policies sold in your state.
• Comfort
Sometimes it's just a matter of intuition. If something rubs you wrong, even if you don't know why, don't be polite. Trust those instincts and walk away. There are so many insurance carriers around, especially on the Internet. You shouldn't be shy about saying "no" and taking your business where it is best deserved and most appreciated. You need to feel good about your purchase, and whatever it takes to feel secure about that purchase, is...whatever it takes. It's your money and your life. Respect it.
It's not hard to find the insurance that's right for you, but it's going to require some effort on your part. Don't be lazy and don't be a sucker. Get out there and do your homework! If you want a good starting place, we have a comprehensive list of insurance companies. This list was designed for people needing to reach their insurer in case of an emergency, but it could give you a good place to start
Also, once you have a policy, you should consider our premium service, Pameno Platinum Protection, a great add-on to a policy that will help expedite claims and can provide security in ways that a policy alone cannot.
