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6 Tips for Choosing the Best Insurance Policy

6 Tips for Choosing the Best Insurance Policy


Insurance industry has been developed very fast for recent decades and most aspects of human financial activities are covered by insurance. No matter you purchase a new car, build a new house or get a guarantee for your family member or yourself, choosing the best insurance policy is always an important part of these activities. Here we listed several most important tips for you to choose the best insurance policy, whether it is home, life, auto, rental or other insurance types.

1. Try to collect information concerning the insurance companies and their rates from your state insurance department.

The first work you need to do is gather information. The best way to do this is to contact your local state insurance department and see if they can provide information related with the range of prices and the lowest-costs in your area.

2. Check from multiple sources to get the best deal.

The best way to get a good deal is to shop and compare around. You can try to get quotes from a website that is focused on insurance. However, you should be aware that some online services may only offer you the prices of limited company choices. To get a better deal, you are highly recommended to contact an independent insurance agent who works with several insurers in your area.

3. Make sure the qualification/license and the financial stability/soundness of the insurance company before you buy your insurance policy.

Before you decide which company you are going to work with, you should check out and make sure the insurance company is licensed and covered by the state’s guaranty fund. This state’s guaranty fund can pay claims in case the company defaults. Again, your local insurance department is the best place to find such useful information. Also, you can check the ratings about financial stability and soundness of your interested insurance company by visiting A.M. Best, Standard and Poor’s, and Moody’s Investors Services.

4. The compliant history of an insurance company reflects its quality of service.

You also need to study the compliant history of an insurance company before you make your move. You can contact your state insurance department or visit National Association of Insurance Commissioners to learn complaints filed with state regulators through its website database.

5. Look for others’ recommendations and to hear their voice about the customer service.

You should ask your family member or friends to see if they have some recommendations on what is the best insurance policy or company from their point of view, or which company you should really avoid because of the bad customer service. If you finally choose a company with low quality customer service, you’ll be disappointed when you are making claims.

6. Get a written copy if your policy.

Last but not the least, once you complete the purchasing of an insurance policy, especially for the first time, you should make sure you receive a written policy. This can tell you that your agent has forwarded your premium to the insurance company and if you don’t receive it within 60 days, contact your agent and the insurance company immediately.


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