Comparing insurance providers

When it comes to comparing insurance providers, most people just compare the monthly pay out. This is a good start; however there are more things to consider if you want to make your investment sound.

Here are some of the common insurances that people that and what you should be considering when comparing the insurance providers.

Car Insurance: Is it a direct seller or an indirect seller? A direct seller means that there is no middle man. So if you have to buy insurance, file a claim or make some adjustments to your policy, you have to directly call the company. If you like doing things by yourself, then you should compare the providers on the Net and go directly to the company. An indirect seller is a company, which sells insurance though an agent or broker: this kind of sale would suit you if you rather meet the agent in your locality.

In Auto Insurance, the two largest direct sellers of insurance are Geico and Esurance and the two largest indirect sellers are State Farm and Farmers.

One of the important factors you have to consider in Auto Insurance is the claims service. Though you may not have had an accident for years, it is better you go in for a company which has a good claims track record. Not only must the claims service pay out the claim money, the money must come quickly, the investigations must be professional, the car should be inspected as soon as possible and the insurance provider should be easy to contact. Log on the J.D.Power Rankings and find out which is a good claims service. Your local body shop is a good place to find out which are the better insurance companies.

When it comes to home insurance there are some points to consider. When you select your home insurer, look at their financial rating. Most insurance companies would be in a position to pay for home repairs, but if there was an earthquake or other type of natural disaster all the homes in the area were damaged only an insurance company with a strong track record would be able to make such a payout. Standard and Poor and A.M.Best track ratings of companies, so take a look at their websites. Things may also look different if you are a landlord renting out homes.

The reputation of the company really matters. However, one of areas which need more clarity is the language of the policy. For instance, if the insurance company has to decide whether the damage is caused by flood or by wind in the case of a hurricane it would mean the difference between getting paid or not.

Also find out, whether they would send out their own claims adjustor or an independent adjusting firm. It really doesn't matter, if your claim is justified, but it would be good to know.