Finding an insurance plan that meets your needs should not be complicated. But there are many factors to consider, and it can be even more challenging depending on the type of policy you are looking for.
Luckily, we have you covered. Here are the top five things you should consider when searching for an insurance plan.
The Insurance Company
When looking for the right insurance plan, you need to choose the right insurance company. There are various companies that offer everything from life insurance to auto, home, business, or health insurance. And there is no shortage of them. But how do you know which company is the best?
Here are some things to evaluate:
- Financial Stability: Is the company financially stable? Great places to check are sites like AM Best, or Moody’s, where they rate insurance companies based on their financial health. The better the score, the better the company’s position to pay your claims.
- Reputation: Does the company have a good reputation amongst consumers? You can read reviews on the Better Business Bureau website or get recommendations from family and friends. But either way, it is important to hear other people’s experiences regarding the company. Pay particular attention to their customer service and claims handling.
- Price: How do their prices compare to other companies? While it might be enticing to choose a company solely based on being the least expensive, it is not the best idea. You want to ensure their prices are competitive but not the cheapest by a landslide. When this happens, you risk the price skyrocketing at renewal for not being appropriately rated.
- Licensing: Are they licensed in your state? This may seem like a no-brainer, but make sure you choose a licensed company that can do business in your state. Otherwise, you risk your policy not being valid.
Coverage
Next, you want to consider the coverage you are getting from this insurance plan. This should be relatively easy if you are currently insured but looking to switch policies. You can compare your current coverage against the new policy you are being quoted to ensure they are identical.
However, this is assuming you have researched what coverage you need beforehand. If you have not, you will need to start there. Calling and discussing your insurance requirements with a licensed agent is the best way to ensure there are not any gaps in what you need and what you are paying for.
Exclusions
Just as important as what you are covered for under an insurance policy is what you are not covered for. Every insurance contract will have a list of exclusions that outline precisely what you are not covered for under their policy, and it is essential to be aware of these before you purchase a policy.
Call the company or your agent and ask about any potential coverage gaps before signing the paperwork.
Deductibles/Co-Pays
Almost all insurance policies will have deductibles or co-pays that you may be responsible for. Deductibles and co-pays are a customer’s out-of-pocket expenses before an insurance policy kicks in to pay a claim. These expenses can vary by policy, so it is best to confirm.
Some policies, such as auto or home insurance policies, may allow you to choose the amount. Before you choose a deductible amount, you should determine the amount you can afford if you file a claim.
Endorsements
Similar to coverage and exclusions, you must also consider any endorsements or riders that need to be added to an insurance policy. Endorsements add coverage to a policy and are a way to get around some exclusions that may exist.
To know which ones are appropriate to add, it is critical to consult a licensed insurance agent who can tell you where coverage gaps exist and which endorsements are needed to fill in those gaps.
Final Thoughts
While the above list is an excellent tool for evaluating insurance plans, you should always do your research before purchasing. Reach out to a licensed specialist who can help you determine what you are looking to get out of an insurance policy, what you are able to afford, and how much coverage you need.
