Characteristics of the Best Insurance Coverage

With insurance prices increasing, it is more important than ever to find the best insurance coverage.

Insurance Company vs. Insurance Agent

Most people don’t really know that there is a difference in dealing with an agent or the company. So you need to know how they are different and what you need to do differently in each case. Knowing this can help you spot the best insurance traits in policies.

Insurance Agents

There is a big difference in going through an agent or going straight to the company. Agent’s work on a commission, and that right might explain the difference to some people. Anyone working on a commission is going to do whatever they can to sell to you. On one hand, an agent can be a guardian angel who bends over backwards to inform and help you. On the other hand, that agent might not be honest or forthcoming with information because they are desperate to sell to you.

If you decide you want to try working with an agent there are different questions you need to ask than when you go to company. These questions will show you the best and worst qualities of the agent and the company.

Time in Business

The first thing you want to ask your agent is how long they’ve been in business. An agent’s history can show you if people stick with him and the company or if he’s just starting out. You also need to ask the agent how he is paid. The way he’s compensated for his work can tell you how willing he is to be tricky with his clients.

Ask if he works for one company or several. If he has more than one company he might get confused on different policies and may not be as dedicated as an agent that only deals with one company. Another great question to ask if he works with more than one company, is what company he does the most business with. The popularity of a company can show you how happy other people are with an insurance company.

Coverage Limitations

We’ve all heard the horror stories about how tough claims can make a person’s life difficult. So you will want to know how much pull your agent has during these times. The more is he able to do with the company, the more quickly the situation is resolved.

If you have special requirements, you want to know which companies will best fit those needs. For example, if you run a certain type of business, if you live in an area prone to flood or fire, or if you have a preexisting medical condition.

One of the most important questions you can ask the insurance agent is if he has errors and omissions coverage. This covers any problems you might have if your agent makes a mistake.

If you agent doesn’t know, won’t answer or seems nervous answering any of these questions then you don’t want to use him. A good insurance agent can be instrumental in helping you with your insurance. Some people will only work with an agent because they are so helpful in pointing out the best and worst aspects of any policy.

Insurance Companies

If you want to go straight to the companies, there are other questions you want to ask. A very important first question to ask is what the company’s reputation for paying claims is. Another is what the company’s financial rating. Financial ratings are graded just like a report card. Anything less than a B+ needs to be treated cautiously. But these companies will often go above and beyond the help you, since they are in such tough competition with the bigger companies.

Of course, you want to know how long the company has been in business, for the same reason you asked the agent. Also ask if this company provides loss prevention services and if it can offer multiple-year policies. Often you can get a discount by paying multiple-year policies by paying in advance.

Asking these questions should show you what things are good and bad things about an insurance company. You can tell quite a bit about an insurance company by these questions, and by the people who represent them.

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