As you would before making any important purchase, do some research before purchasing insurance.
Most people do their research on big purchases like homes, cars, or electronics to make sure they’re getting the best value for their money. Just as important is knowing what you’re getting when you buy insurance to protect your family and financial well-being.
The purpose of insurance is to reduce financial uncertainty and manage accidental losses. Insurance does this by accepting an insurance premium to anticipate a certain loss, and a promise to pay if the covered loss occurs.
As you complete your research, feel more confident knowing these facts about insurance:
Not all insurance companies are the same.
Insurance companies vary in the financial strength they back your policy, guaranteeing that they can meet their financial obligations to pay claims. Look for an insurance carrier that is financially strong and consistently qualifies for a high financial strength rating from AM Best Co., an independent provider of insurance company ratings.
A local independent agent based in your community has a long-term interest in protecting you by following through to your satisfaction.
Insurance policies provide different coverages.
While many insurance policies have similar coverage, each company provides unique policy terms and limits. Seemingly identical policies can be replaced by a single exclusion or endorsement. It’s important to read your policy carefully to understand what you’re getting. It may be tempting to switch to a different carrier for the premium savings, but if they offer less coverage, it may not be worth it.
Insurance companies offer different levels of customer or claims service.
Sometimes the old adage is true: “You get what you pay for.” Your state’s insurance department and the National Association of Insurance Commissioners can tell you which companies have the fewest complaints and can handle them effectively. Find a company that offers personalized treatment, prompt contact and fair settlement.
You have control over the cost of your insurance.
An independent agent can pinpoint exactly how changes to your deductible or your lifestyle can lower your insurance costs. They may suggest safety measures that get you a discount or tell you how to package one policy with another to save money and improve coverage.
Conclusion:
Independent insurance agents make a living knowing which companies operate responsibly and which policies are best for a particular client’s needs. Your local agent can help you make informed insurance purchases to provide the protection, quality and convenience your family deserves.
The coverage described here is in the most general terms and is subject to actual policy conditions and exclusions. For actual coverage terms, conditions and exclusions, refer to the policy or contact your independent agent.