When choosing a company to provide you with any form of insurance, several factors should be included in your consideration before you choose the insurer that seems most appropriate for you. Here’s a quick list to help you get started on choosing an insurance policy that you are most comfortable with:
- Find out whether or not the insurance company listed is as a Stock or Mutual company:
Stock insurance companies are publicly traded corporations that are owned by a majority of its stockholders. The main consideration you should take note of with a stock insurance company is that their main objective is to ensure profit for its stockholders. Mutual insurance companies, on the other hand, are owned directly by the policyholders who are considered “contractual creditors”. Many people agree that mutual insurers are usually a better option as they prioritize the needs of its policyholders over everything else.
- Check the insurance company’s reputation:
Check the ratings listed by independent third party review agencies such as Moody’s and A.M. Best. These ratings can offer you a concise report of the company’s reputation towards servicing its policyholders.
- Find out the insurance company’s premium persistency:
Finding out an insurance company’s premium persistency offers a measure of how many policyholders actually renew their coverage every year. This will provide a clear indication of customer satisfaction towards the company’s service and offer you some peace of mind.
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