When looking for an insurance agency to help you with your needs and concerns, there are a few important factors to remember. You shouldn’t just choose the first company that comes along – you should be aware of what kind of service they provide and ensure it will meet your needs.
Here are some factors you should consider when choosing an insurance agency:
Financial Strength
Financial strength is the first factor to consider when selecting an insurance bundle. The agency must be financially strong and stable to protect you from insolvency. Insolvency means the firm has insufficient assets or capital to meet its liabilities, including debts, bills, and unpaid claims.
Insurance companies are regulated by state agencies that monitor financial soundness, including the amount of capital they maintain. These regulators ensure that insurance companies have enough money in their reserve accounts to pay claims if there is a sudden increase in claims.
The best way to evaluate an insurance company’s financial condition is by looking at its financial statements. Financial statements show how much money a company has made or lost over some time (usually one year). You can request these statements from any licensed insurance carrier by calling their toll-free number. Some carriers provide them online as well.
Suppose an agency has been around for many years without filing for bankruptcy or being closed by regulators. In that case, it’s a good bet that it has enough capital to cover its liabilities. However, some carriers can hide poor financial conditions by keeping reserves off their balance sheets.
Customer Service
Customer service is a vital factor to consider when choosing an insurance agency. Customer service is the top priority for most insurance agencies, but some are better than others. The best way to determine whether an insurance agency has good customer service is by asking for references from people who have used their services and experienced a positive outcome. If a company needs better customer service, then it is likely they do not have happy customers willing to give them a good reference.
When you ask for references, make sure that you ask if they would recommend the company in the future and why or why not. If they give negative feedback or seem hesitant to give any recommendations about their experience with the company, it can indicate poor customer service. You also want to ask if they had any problems filing claims or getting coverage from their agent after making a claim, or if they were satisfied with how quickly their claims were processed once submitted by their agent.
Compatibility With Your Insurance Needs
The insurance agent you choose should be compatible with your insurance needs. For example, if you have a high risk of theft and vandalism, you should choose an agent specializing in property and casualty insurance. The same goes for other areas of expertise, such as life or health insurance.
When choosing an insurance bundle, ask them about their experience with your expertise. Ask them how long they have been working in the industry and their background. An experienced professional will likely have more knowledge than someone who has just started the business.
You should also consider whether or not it’s worth paying higher premiums for better coverage from a larger company, or if it makes more sense to pay less for less coverage from a smaller company with fewer resources available to help you if the worst happens.