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How to Pick the Right Insurance Company

Picking the correct insurance company for your needs can sometimes be a chore. Whether it is for auto insurance, home insurance, or life insurance, you have to compare rates, service, look at premiums, and more in order to make an educated decision. Finding the lowest-priced insurance may be easy, but you want to make sure the company is reputable enough that it will cover your needs. They also need to be reliable in how they treat you. There are some tips when it comes to choosing an insurance company we can cover to help you make the correct decision. For example, today we will look at some ideas on how to find the right auto insurance company.


First, look at your state’s department of insurance website. Every state has a department of insurance, and many will publish consumer complaint ratios, allowing you to see how many complaints a car insurance company has received per 1,000 claims filed, which allows you to screen prospective insurers. If these ratios are not available for your state, look at surrounding states to get a general idea – just remember that a single insurance company’s practices can vary significantly depending on the state, so take these figures with a grain of salt.


Next, speak with body shops in the area. They have the advantage of working regularly with insurance adjusters, and will be able to tell you the ones that have the smoothest claim process, as this can have an effect on how quickly you get back your vehicle.


You can also check the JD Power Ratings. JD Power and Associates collects individual policyholder’s data from across the nation to rate company’s in terms of coverage options, price, claims handling, satisfaction with company representatives, and the overall experience with the insurance company, allowing you to quickly assess major carriers in the United States. After checking the JD Power Ratings, also look at the AM Best and Standard and Poor’s ratings, as these rate companies on their financial strength, giving a general measure of the company’s ability to pay out a claim. Most well known companies have a strong rating, but this research is still important, especially if you are considering a smaller, unfamiliar insurance carrier which could have dubious financial standing.


Finally, after you have done this independent research, you still might have questions. If this is the case, speak with an agent. There are two different types of agents: independent and captive. Captive agents are those who represent one insurance company, while independent agents represent several insurance policies, and therefore do not have a vested interest in selling you one policy over another. By developing a relationship with an insurance company, you can help them to become familiar with your situation so they can guide you towards the most suitable policy for your situation.


If you have more questions regarding which insurance is right for you, contact Lock Insurance today.
Don Westerfeld 4/3/2012 2:52:00 PM

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