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How-and-why-you-must-compare-insurance Insurance FAQ
How-and-why-you-must-compare-insurance Insurance Companies
The expression about no two snowflakes being the same is true with just about everything in life, including insurance companies and insurance policies. You should compare insurance for rates and benefits since they can change drastically from one policy to the next. You should also compare insurance companies to review which companies have the best reputations and which ones to avoid.
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All insurance companies are required to follow state guidelines. However, state guidelines vary widely from state to state. Some states may allow car insurance companies to use your credit report to help determine your rate and some states may disallow life insurance companies to offer return of premium life insurance policies.
Since there are so many rules and exceptions when it comes to insurance, it is best to compare insurance to make sure you are getting the best coverage at the lowest rates. Types of insurance to consider include auto, health, home, renters, and life.
Of course, there are many more kinds of insurance that you may find beneficial during your lifetime. Every time you need insurance, compare policies before buying. It is also a good idea occasionally to compare insurance on any long term policy you have to make sure your coverage is still adequate and that you are paying the lowest premium possible.
Compare Insurance Rates for Best Prices
In most states, insurance is a competitive industry, which means that as the consumer you can benefit by shopping around for the lowest rates. Rates vary from one insurance company to the next, so by comparing quotes you can find out who is offering the best deal. Shopping online with a quote tool makes this task even easier.
By switching insurance companies it is possible to save hundreds of dollars on your insurance policy. If the coverage is exactly the same and the company is reputable, it is definitely a worthwhile consideration to make the change.
In addition to shopping around for the lowest rates from different insurance companies, you need to shop around for a good policy with the best price. Even within the same insurance company your premiums will vary based upon the policy you buy.
You can usually keep the same coverage with the same benefits but pay less on your premium by increasing your deductible. It is also possible to retain the same coverage but reduce your premiums by asking your insurance company about different discounts for which you may qualify. Savings can add up to hundreds of dollars.
Although you need insurance, you do not need to pay more for it than necessary. Compare insurance rates for your policy by varying the deductible, adding discounts, and possibly changing coverage limits. Compare insurance companies to see who is offering the best rate for the same type of coverage.
Compare Insurance Benefits for Best Coverage
There is more to insurance than just low rates. You need to compare insurance benefits so that you are getting the right amount of coverage for the price you are paying. Keep these facts in mind as you comparison shop:
- If an insurance company offers you car insurance for only $20 per month, that may sound like a very tempting offer compared to the $50 per month you currently pay. However, if the benefits are not the same then you are not actually saving any money at all. You are simply paying less for less coverage.
- Using an online quote tool helps you compare coverage between insurance companies so that you know the price you are being quoted is for comparable coverage. If you pay $50 per month for car insurance that includes liability coverage for 50/100/50 as well as collision and comprehensive with a $500 deductible, then you need to compare those same benefits to the policy of another insurance company. The insurance company that quotes you $20 for 20/40/10 and has no collision or comprehensive does not compare.
- As in the above example, be sure the quote is also comparable with the deductibles. There is a difference in premiums based on how much of a deductible you choose. This can be easily changed with any insurance company, but you need to know the price difference for each to make sure you are getting a fair comparison.
Compare Insurance Companies for Best Service
Reasonable rates and great coverage are two important aspects of insurance. However, there is a third component that often gets overlooked by people when shopping for insurance products. An insurance product is only as good as the company that sells it.
If you buy an insurance product from a company that is unstable you risk losing your entire investment. An insurance company that is unable to pay its claims means your premiums dollars could be wasted completely.
Independent companies analyze insurance companies for various financial factors, such as their debt to asset ratio and the amount of claims payout. Based on different calculations, each rating company assigns a grade to the insurance company to show the company’s financial strength.
If an insurance company receives one “B” and two “A” ratings from three different rating companies, it is a fairly safe assessment that the insurance company is relatively sound. Of course, an insurance company that receives the highest of ratings from all independents can be considered to be financially very strong.
The other points to consider when you compare insurance companies are aspects on how the company conducts itself on a personal level and on a professional level. An insurance company that is rated as financially stable but has horrible customer service may not be the best choice for you. Nor is a company that can afford to pay its claims but has a very difficult or slow claims process.
Other considerations include availability by phone or online, depending on your personal preferences. If you like the option of being able to pick up a phone and talk to a person then you need an insurance company that has live representatives with a phone number that is easy to find. If you prefer to conduct your business online, then having an insurance company with an easy to use website can make a difference for you.
Insurance is an investment that should be considered carefully. You have to buy a policy that gives you the complete coverage you want and need. You deserve to have it at an affordable rate and with an insurance company that will be there for you when you need them. Compare insurance quotes now to get rates for all of your insurance needs.