What to look for in an insurance company

There are many criteria which should be included in an analysis of the available insurers. Some of the main ones are:

Financial Strength Ratings

It's important to know that the insurance company will still be in business when it comes time to pay your claim. For this purpose, insurers are rated by independent rating agencies such as A.M. Best and others. The highest rated companies are A++, A+, and A. These ratings are determined by a lot of different factors, including the geographic diversity of the insurance company, the amount of available capital, the ratio of cash assets to liabilities, and more.

Claim Satisfaction Ratings

Insurers are subject to rating by regulatory bodies such as New York State Department of Financial Services (DFS). The DFS compiles reports that show how many complaints they receive for each insurer compared with the number of policies that insurance company provides.

If you look hard enough, you can also find good and bad experiences shared online for any insurance company. No company is able to make every client 100% satisfied in every transaction. Occasionally mistakes are made, bad judgment calls cause displeasure, or expectations of policyholders may be off-base.

Overall Ease of Doing Business

Difficulty in doing business can be a huge detractor, so it's important to align with an insurer that meets your needs and expectations. The little things can make a big difference.

Coverage Offerings

Most companies do not differ in their basic offerings, but many have developed solutions to problems that people face, and many have special coverage options that may not be commonplace. It's NEVER truly apples to apples.

Affordability of Premiums

Price does play a role in the determination of which insurer or policy is the right fit. You need to make sure that you are getting an appropriate value for the price that you pay. It is often the case that you get what you pay for, and it may make sense to pay a little more to get a lot more benefits.

Agent Recommendations

An agent's years of experience working with insurers can help you gauge the current marketplace. Insurers always have ebbs and flows in the course of growing, hiring, technology developments, profitability, and other factors which can make a difference in the experience you have. The recommendation of an agent should be taken into consideration as you make your decisions.