Sizing up an Insurer

Selecting the right insurance company is critical. Learn how to size up an insurer before purchasing coverage.

Licensing

Not all insurers are licensed to issue policies in every state. Consumers should always buy from insurers who are licensed to do business in their home state because then they can turn to the state insurance department if they have a problem. After you receive online insurance rates, write down the names of your prospective insurers and visit your state insurance department's website. The site will allow you to look up whether those insurers have licenses in your state.

Premiums

Though you should not select insurance coverage based solely on price, premiums are an important consideration to make when purchasing a policy. The premiums of comparable policies can vary substantially among different insurers, which is why it's best to shop around for coverage. You can do all of your shopping on one site with us, as we offer multiple quotes at the same time. Ideally, you should get at least three quotes on online insurance rates before making a decision. You may also want to contact your state insurance department to see if they publish a guide of average premiums for various policies in different areas of the state.

Financial Strength

If you are relying on an insurer to protect your financial stability, of course you want an insurer that is financially stable themselves. You want online insurance rates from a company that has a good credit rating and a positive financial outlook. Consumers can look up this information through independent rating agencies, such as Moody's, Standard & Poor's, and Finch.

Policyholder satisfaction

You want an insurer that is attentive and quick to respond to your questions and claims. You also want an insurer that handles claims in a fair and efficient manner. To determine the level of customer service an insurer provides, try talking to other policyholders after you get online insurance rates. You can also consult rankings like those put out by J.D. Power & Associates. Every year, J.D. Power surveys thousands of policyholders to determine their level of satisfaction with their insurance companies.

Your Level of Comfort

Should the occasion ever arise, you will have dealings with your insurer during what will probably be some of the most challenging times in your life. As such, you want to make sure that you pick a company with which you feel comfortable. Once you receive online insurance rates, contact your insurer, whether through an agent or customer servicer representative, to get a feel for how they respond to customers. You want an insurer that will be reachable in the event you have a question or need to file a claim.