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Educational Consumer Tips

Insurance Companies

Author: Rachel Gelb
Category: Finance

Whether the policy is for auto, life, home, or any other type of insurance choosing an insurance company and policy is a big commitment. Each customer is different and requires a certain type of coverage to accommodate their lifestyle and family. For this reason, finding the right insurance company may take some searching. A qualified and dependable insurance company will be able to customize to the customer’s desired coverage and price range.

Tips for Finding an Insurance Company:

Think About the Insurance Needed.  Determine how much coverage is desired for the type of insurance.  Establish what deductible amount you are willing to pay for the amount of coverage. 

Do Your Research.  Compare multiple insurance companies to see the type of coverage they offer and the cost. Look at the state’s department of insurance website for the ratio of consumer complaints for each business that provides insurance for that state. This website also shows a list of licensed and approved businesses for various types of insurance. Ask friends and family with similar needs for advice on what insurance companies work for them.

Choose a Few.  After compiling the information, choose three reliable businesses to get a quote from.  There are some websites that allow a side by side comparison of the rates. The lowest price may not be the best deal. Make sure the amount of coverage and benefits are reflected in the cost. Check out a business at to see if the business is accredited and has any complaints before choosing one.  

Decide Who to Work With.  Depending on the business, consumers can buy insurance directly from the business or work with a captive or independent agent. A captive agent represents one specific insurance company.  An independent agent, or broker, represents multiple insurance companies.  An agent gives consumers a one-on-one to direct them to a specific policy that suits their needs.

Ask About Package Deals.  When looking for more than one type of insurance policy, ask the business if they offer any packages. Businesses allow consumers to save money if they choose to buy more than one type of insurance policy. When comparing policies keep in mind: insurance cost, deductible cost, co-pay, and the cost the insurance covers if there is an accident.

Read Carefully.  Before purchasing the insurance policy, thoroughly read the agreement. If there is anything confusing have the agent or company explain the contents clearly. Make sure the application is filled out correctly and completely. Do not sign an application that is blank and save copies of all paperwork for future reference.  After the insurance is purchased, review the policy annually to ensure everything is still accurate and the policy is continuing to provide the necessary coverage.

About the Author: Rachel Gelb is Communications and Marketing Manager for BBB serving Eastern Massachusetts, Maine, Rhode Island and Vermont. Find Rachel on Google +.

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